Document:

Exhibit 10.3

 

	
  

  	
   

  	
   

  	
   

  
	
  1201 Main Street, 

  Suite 2650 

  	
  Dallas, 

  Texas 75202-3937 

  	
  Tel 214-742-3370

  Fax 214-742-3418

  www.bvaladvisors.com

  

 

November 17, 2006

 

Special
Committee of the Board of Directors 

Earth Biofuels, Inc. 

3001 Knox Street, Suite 401 

Dallas, Texas 75205

 

Special
Committee of the Board of Directors 

Apollo Resources International, Inc. 

3001 Knox Street, Suite 403 

Dallas, Texas 75205

 

Dear
Committees:

 

We understand
that Earth Biofuels, Inc. (“EBI”) and Apollo Resources International, Inc. (“ARI”)
are considering the sale of all of the outstanding common stock of a 51% owned
subsidiary of ARI known as Apollo LNG (“ALNG”) to EBI for EBI common stock (the
“Transaction”). In connection with the Transaction, ARI and the other
shareholders of ALNG will receive an aggregate of 18,844,222 shares of EBI
common stock (the “Aggregate Acquisition Consideration”) in exchange for all
the outstanding shares of ALNG common stock (49,019,608 shares). As a result of
the Transaction, ALNG will become a wholly-owned subsidiary of EBI. In
accordance with our engagement letter dated September 18, 2006, you have
requested our opinion (the “Opinion”) as to the fairness, from a financial
point of view, to the public shareholders of EBI and ARI, respectively, of the
Aggregate Acquisition Consideration. We will collectively refer to EBI and ARI
as the “Companies” and the special committees of the boards of directors of ARI
and EBI as the “Special Committees.”  The
effective date of the Transaction is November 17, 2006.

 

In the course
of our analyses for rendering this opinion, we have, among other things:

 

Legal
documents

 

1)              Considered
a draft (dated November 14, 2006) of the Share Exchange Agreement between ARI
and EBI whereby ARI receives 9,422,111 shares of EBI common stock in exchange
for 25,000,000 shares of ALNG common stock.

 

2)              Considered
a draft (dated November 14, 2006) of the Share Exchange Agreement between EBI
and the shareholders of Apollo LNG other than ARI whereby such shareholders
receive 9,422,111 shares of EBI common stock in exchange for 24,019,608 shares
of ALNG common stock.

 

 

3)              Considered
EBI Acquisition of Apollo LNG, Inc. Worksheet detailing exchange of shares.

 

4)              Considered
November 15, 2006 draft of Transition Services Agreement between ARI and Golden
Spread Energy, Inc. dated November 30, 2006.

 

5)              Considered
the closing documents on December 7, 2005 for ALT Transaction, Mountain States
Transaction, TxHLDM Transaction, and Miscellaneous closing documents relating
to aforementioned transactions.

 

6)              Read
the Term Loan and Joinder Agreement dated as of June 20, 2006 by and among FCC,
LLC and Applied LNG Technologies USA, L.L.C, Arizona LNG, L.L.C., Fleet Star,
Inc., Renewable Alternative Fuels, LLC, and Alternative Fuels Technologies LLC,
and Apollo Drilling, LLC provided by management.

 

7)              Read
the internal Loan and Security Agreement dated as of April 14, 2006 by and
between FCC, LLC, and Applied LNG Technologies USA, L.L.C., Arizona LNG,
L.L.C., Fleet Star, Inc., Renewable Alternative Fuels, LLC, and Alternative
Fuels Technologies, LLC provided by management.

 

Financial
documents

 

8)              Analyzed
the unaudited financial statements for the 6 month period ended June 30, 2006
for ALNG.

 

9)              Analyzed
the internal ALNG detailed unaudited income statement for six month period
ended June 30, 2006.

 

10)        Analyzed
the internal ALNG detailed unaudited balance sheet as of June 30, 2006. 11)
Analyzed the internal ALNG reconciliation of January 2006 LNG deliveries by
customer. 12) Analyzed the ALNG customer list for September 2006.

 

13)        Analyzed
the financial statements compiled by J. Donald Buckley, P.C. for the year ended
September 30, 2001 for Applied LNG Technologies.

 

14)        Analyzed
the financial statements audited by Johnson & Sheldon, P.C. for years ended
September 30, 2002 through 2005 for Applied LNG Technologies.

 

15)        Analyzed
the internal Budget Variance Report for Applied LNG Technologies dated July 31,
2006.

 

2

 

16)        Analyzed
the internal consolidated balance sheet for Applied LNG technologies and
Arizona LNG as of July 31, 2006.

 

17)        Analyzed
the internal consolidated income statement for month ended July 31, 2006 for
Applied LNG Technologies and Arizona LNG.

 

18)        Analyzed
the internal consolidated income statement for fiscal year 2006 for Applied LNG
Technologies and Arizona LNG.

 

19)        Analyzed
the internal summary of monthly cash flows for October 2005 through July 2006
for Applied LNG Technologies and Arizona LNG consolidated.

 

20)        Considered
the appraisal of Willis LNG Plant on August 22, 2002 by Project Technical
Liaison Associates, Inc.

 

21)        Considered
the appraisals of Willis LNG Plant and Needle Mountain LNG Plant on October 11,
2004 by Project Technical Liaison Associates, Inc.

 

22)        Analyzed
the internal ALNG monthly income statement projections for August 2006 through
December 2009.

 

23)        Analyzed
the EBI financial statements for fiscal year 2006 and twelve months ended June
30, 2006 provided by Capital IQ.

 

24)        Analyzed
the internal EBI monthly individual plant projections and consolidated
projections for August 2006 through December 2009.

 

25)        Considered
the internal unaudited opening balance sheet for TxHLDM, Inc. for November 30,
2005 provided by management.

 

26)        Analyzed
management’s forecast for ALNG based on estimates of gallons of LNG sold,
future LNG prices, ability to control costs, and gross margin estimates.

 

27)        Considered
the ALNG organizational chart provided by management.

 

Other
company provided documents

 

28)        Considered
documents provided by ARI detailing the structure of Applied LNG Technologies
including business units and partnerships.

 

29)        Considered
the ALNG business overview dated September 19, 2006.

 

30) Considered the internal Arizona LNG general process description of
Needle Mountain facility.

 

3

 

31)        Analyzed
the biofuels industry summary provided by management.

 

32)        Considered
the internal ALNG presentation to Earth Biofuels on September 14, 2006.

 

33)        Considered
the internal Earth Biofuels management presentation dated September 2006.

 

34)        Considered
the San Pedro Bay Ports Clean Air Action Plan Technical Report dated June 2006
by Port of Long Beach.

 

35)        Considered
the Interstate Clean Transportation Corridor (ICTC) Info Update dated July 2006.

 

Research
documents

 

36)        Analyzed
the consensus estimates for guideline public companies provided by Capital IQ.

 

37)        Considered
the Wright Investors Service analyst report for Earth Biofuels on October 6,
2006.

 

38)        Considered
the ValuEngine research report for Earth Biofuels on October 9, 2006.

 

39)        Considered
the ValuEngine industry report for “Alternative Energy” industry on October 9,
2006.

 

40)        Considered
the Value Line research report for “Natural Gas (Distribution)” industry on June
16, 2006.

 

41)        Analyzed
the public filings for ARI, EBI, and guideline public companies provided by 10k Wizard.

 

42)        Conducted
a Capital IQ company screening
for public companies similar to EBI and ARI.

 

43)        Analyzed
the market prices and valuation multiples for certain publicly traded companies
that were comparable in certain respects to EBI and ARI.

 

44)        Visited
EBI’s office in Dallas, Texas, where we met with senior management of EBI and
ALNG to discuss the fundamental and financial position of EBI and ARI, business
conditions in the LNG industry, and the prospects for EBI and ARI.

 

45)        Interviewed
Charles Flinta, Finance Director, LNG of ARI, Darren Miles, Chief Financial
Officer of EBI, and Jason Creutzmann of EBI.

 

4

 

46)        Conducted
such other financial studies, analyses, inquiries, and investigations as we
deemed appropriate, including an assessment of general economic conditions and
the LNG industry.

 

In rendering
our Opinion, we relied upon and assumed, without independent verification, the
accuracy and completeness of all financial and other information that was
available to us from public sources and all the financial and other information
which EBI and ARI provided to us. We further relied upon the assurances of the
management of EBI and ARI that they were unaware of any facts that would make
the information which EBI and ARI or its representatives provided to us
incomplete or misleading. We assumed that the final form of the Share Exchange
Agreements will be substantially similar to the draft (November 14, 2006) of
the Agreements.

 

In our
development of the five-year forecasted income statement for ALNG, management
provided underlying assumptions. We do not express an opinion or any other form
of assurance on the reasonableness of the underlying assumptions. Furthermore,
in arriving at our opinion, we have not performed or obtained any independent
appraisal of the assets of ALNG or EBI.

 

Our Opinion is
necessarily based on economic, market, financial, and other conditions as they
existed, and the information made available to us, as of the date of this
letter.

 

Based on the
foregoing, we opine that the Aggregate Acquisition Consideration is fair, from
a financial point of view, to the public stockholders of EBI and ARI.

 

The Opinion
expressed herein is provided solely for the information and assistance of the
boards of directors of EBI and ARI concerning their respective deliberations
regarding the Transaction.

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
  

  
	
   

  	
   

  
	
   

  	
  Bernstein Conklin
  & Balcombe

  
	
   

  	
   

  
	
   

  	
   

  
	
  BCB:kfk

  	
   

  

 

 

	
  

  	
   

  	
   

  	
   

  
	
  1201 Main Street, 

  	
  Dallas, 

  	
  Tel 214-742-3370

  
	
  Suite 2650 

  	
  Texas 75202-3937 

  	
  Fax 214-742-3418

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  www.bvaladvisors.com

  

 

Memorandum

 

	
  To:

  	
  Special
  Committees of the Board of Directors for Apollo Resources International, Inc.
  and Earth Biofuels, Inc.

  
	
   

  	
   

  
	
  Date:

  	
  November 17,
  2006

  
	
   

  	
   

  
	
  RE:

  	
  Valuation of
  Apollo LNG, Inc. and Earth Biofuels, Inc.

  

 

Engagement
Overview

 

The purpose of
Phase 1 of the engagement was to value Apollo LNG, Inc. (“Apollo LNG” or the “Company”),
a wholly owned subsidiary of Apollo Resources International, Inc. (“Apollo Resources”),
for the purpose of transfer to Earth Biofuels, Inc. (“EBOF”), a publicly traded
company in which Apollo Resources owns 63.83 percent.

 

Phase 2 of the
engagement involved rendering a fairness opinion on the consideration in which shares
of EBOF were to be exchanged for ownership of Apollo LNG. In this phase, we
analyzed transaction documents and analyzed the value of EBOF public stock. The
following is a list of exhibits used in our analysis: 

 

Apollo
LNG

 

	
  Exhibit 1

  	
  Financial
  Statement Analysis

  
	
   

  	
   

  
	
  Exhibit 2

  	
  Adjusted
  Financial Statements

  
	
   

  	
   

  
	
  Exhibit 3

  	
  Comparative
  Ratio Analysis

  
	
   

  	
   

  
	
  Exhibit 4

  	
  Revenue and
  Gross Profit Forecast

  
	
   

  	
   

  
	
  Exhibit 5

  	
  Forecast

  
	
   

  	
   

  
	
  Exhibit 6

  	
  Multiples
  Calculation

  
	
   

  	
   

  
	
  Exhibit 7

  	
  Terminal
  Multiple Calculation

  
	
   

  	
   

  
	
  Exhibit 8

  	
  Historical
  Multiples Analysis

  

 

Bernstein,
Conklin & Balcombe

 

1

 

	
  Exhibit 9

  	
  Discounted
  Cash Flow Analysis

  
	
   

  	
   

  
	
  Exhibit 10

  	
  Monte Carlo
  Simulation

  
	
   

  	
   

  
	
  Exhibit 11

  	
  Internal
  Transaction Method

  
	
   

  	
   

  
	
  Exhibit 12

  	
  Correlation
  and Exchange Ratio

  

 

Earth
Biofuels

 

	
  Exhibit 13

  	
  Financial
  Statement Analysis

  
	
   

  	
   

  
	
  Exhibit 14

  	
  Comparative
  Ratio Analysis

  
	
   

  	
   

  
	
  Exhibit 15

  	
  Forecast

  
	
   

  	
   

  
	
  Exhibit 16

  	
  Trailing
  Stock Price Analysis

  
	
   

  	
   

  
	
  Exhibit 17

  	
  Discounted Cash
  Flow Analysis

  

 

Valuation of Apollo LNG

 

Overview
of the Company

 

Apollo LNG
produces, distributes, and markets clean, liquefied natural gas (“LNG”). The cleaning
process removes non-methane compounds from natural gas such as propane and non-gas
liquids. The cleaned natural gas is then converted to a liquid state through
cooling and pressure (“liquefaction”). Apollo LNG cleans the natural gas for
use in vehicles. Although the liquefaction process is commonly used for storage
of natural gas, common available LNG is not clean, therefore it cannot be used
in vehicles. At the Valuation Date, only six plants were in operation that
produced clean LNG, including Apollo LNG’s plant in Arizona. 

 

Customers

 

The Company’s
customers are predominantly in southern California. Major customers include Orange
County, the city of San Diego, and the Port of Long Beach. The state of
California has mandated the use of cleaner fuels, and LNG meets California’s
stringent requirements. At the Valuation Date, Apollo LNG could not produce
sufficient LNG to meet the demands of its existing customers and was having to
purchase clean LNG from a third party. 

 

2

 

Tax
Benefits

 

LNG purchasers
receive an excise tax rebate for the use of the fuel. However, many of the customers
are tax exempt. Management believes Apollo LNG will reach agreements with these
customers to split the excise tax benefit.

 

Historical
Financial Statements

 

As shown in
Exhibit 1, as of June 30, 2006, the Company had $13,290,800 of debt and book value
of total invested capital of $42,991,700 on the balance sheet. Between June 30,
2006 and the Valuation Date, Apollo LNG repaid approximately $2,000,000 in
debt. The remaining debt is divided between Apollo Resources (approximately
$5,000,000) and First Capital Corporation ($6,000,000), an independent party.

 

In addition,
the Company has nonoperating assets of related party accounts receivable,
related party other receivables, related party note receivables, a note receivable
from shareholder, and investments which we removed from the balance sheet as
shown in Exhibit 2. The book value of these nonoperating assets was
$3,837,700. 

 

Apollo LNG
historically operated under a management contract with the prior owner.  Management represented this contract overly
burdened the Company and that profit would have been greater had the management
contract not been in place. We understand that, immediately after the
Transaction, a new contract will be in place that will reduce the cost of the
management contract by approximately $200,000 per month.

 

Management
indicated that Apollo LNG bought only one of the two plants from Applied LNG Technologies
U.S.A., L.L.C. (“ALT”) in the November 2005 transaction, which will be discussed
later. Accordingly, the forecast reflects Apollo LNG operating one plant, while
the historical financials represent ALT’s operation of two plants. 

 

3

 

Forecast

 

Management
provided a monthly income statement forecast for Apollo LNG for October 2006 through
December 2009. Based on the forecast, we observed the following:

 

While gallons
of LNG sold are expected to increase approximately one million gallons annually
from 2006 to 2009, commodity cost was expected to decline significantly in 2007
through 2009, ultimately resulting in a gross profit that is expected to almost
double in the same period. On a per gallon basis, profit (excluding fees) is
expected to increase from $0.18 per gallon in 2006 to $0.24 per gallon in 2009.
Management indicated gross margin would improve due to the ability to control
commodity cost through the use of hedging, a strategy not previously employed.
In addition, operating expenses are expected to be controlled more effectively.
Currently, there is a management contract in place where the previous owners
manage the day-to-day operations, thus management believed general and
administrative expenses are forecasted conservatively high. 

 

We assumed a
tax rate of 35 percent. Because the Company is expected to have negative profitability
through 2007, we accrued net operating losses to be applied in future years.

 

In addition,
management indicated that Apollo LNG’s debt covenants allow for a maximum of $250,000
of capital expenditures annually, therefore we assumed $250,000 of capital expenditures
annually for the forecast period.

 

As stated
previously, the Company’s customers will receive a benefit from excise tax
credits for LNG which go into effect on October 1, 2006. However, many of the
customers are tax exempt.  Management
believes Apollo LNG will reach agreements with these customers to split the
excise tax benefit. Accordingly, Apollo LNG reduced forecasted cost of goods
sold by the amount of the excise tax credit received. 

 

Adjustments
to Forecast

 

The forecast
provided did not show Apollo LNG exhibiting profitability, although management indicated
that they expect profitability in the near future. Accordingly, we revised the
forecast to reflect the actual expected profitability of the Company, as shown
in Exhibit 4 and as follows.

 

4

 

We presented
the adjusted forecast to Apollo LNG’s management who agreed with our adjustments.

 

Volume

 

We forecasted
gallons per day sold to grow 10 percent annually through 2011. Due to an inadequate
supply at the Valuation Date, current customers should be willing to purchase
greater volumes and the Company should acquire additional customers given the
pressure exerted by California over emissions. Apollo LNG’s plant is rated for
86,000 gallons per day and we assumed any overage would be acquired from
ExxonMobil’s plant, in line with historical operations. 

 

Revenue

 

We relied on
management’s sales price per gallon estimates for 2006-2009. In 2010 and 2011, we
anticipated sales price growth of 10 percent and 5 percent respectively.

 

Cost
of sales

 

We relied on
management’s commodity cost per gallon estimates for 2006 to 2009. In 2010 and
2011, we anticipated growth in line with sales price. Based on management expectations,
the expansion in profit per gallon would be the result of controlled risk as
the result of hedging.

 

We assumed the
fees and imbalance costs per gallon are equal to management’s forecast in 2006
through 2009. We kept the cost per gallon constant from 2009 through 2011. The
LNG delivery cost per gallon was assumed constant at $0.07 per gallon, the
average of management’s forecast.

 

Expenses

 

Charles
Flinta, Finance Director, stated in an email that he believed a normalized
operating expense level was roughly one-half the run rate. We adjusted the
forecasted operating expenses as follows. We relied on management’s forecast
for 2006. We adjusted 2007 expenses to 75 percent of the level originally
projected, representing a savings of 25 percent. We then scaled the operating
expense level in 2008 to one-half that originally projected for 2007, with an 

 

5

 

inflation
adjustment of 5 percent. We assumed the expenses would grow 5 percent annually through
2011.

 

As such, we
utilized the adjusted projections in our forecast, shown in Exhibit 5, to our discounted
cash flow method, as discussed below.

 

Valuation

 

In our
valuation of Apollo LNG, we applied the internal transaction method and a
discounted cash flow analysis to determine the value of operations in the
Company.

 

Guideline
Company Method

 

Apollo LNG
operates in the alternative energy industry. As such, we conducted Capital IQ searches for biodiesel,
biofuel, LNG, and ethanol producing companies and compared the Company them to
the following seven guideline companies: EPG, FSYS, GPRE, PEIX, RTK, VSE, and
XNL. We also included Apollo Resources (AOOR) and EBOF in our guideline companies.
Also through Capital IQ, we
obtained consensus estimates for each of the guideline companies to calculate
forward multiples of MVIC-to-revenue (cash-free), MVIC-to-EBITDA (cash-free),
and price-to-earnings, as shown in Exhibit 6. The guideline companies, like
Apollo LNG, were not profitable at the Valuation Date. The estimates of future
profitability were several years in the future and represented substantial
changes from the current period.  Therefore,
we considered the application of the multiples to be unreliable in the
determination of value. Accordingly, we did not rely on the guideline company
method.

 

Discounted
Cash Flow Method

 

Discount
Rate Selection

 

The range of
required returns in venture capital based studies is presented in the following
table.

 

6

 

	
   

  	
   

  	
   

  	
   

  	
  Scherlis

  	
   

  	
  Babson

  	
   

  	
  HVA Study (4)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  and

  	
   

  	
  College

  	
   

  	
  Actual

  	
   

  
	
  Stage of Development

  	
   

  	
  Plummer (1)

  	
   

  	
  Sahlman (2)

  	
   

  	
  Mass (3)

  	
   

  	
  Returns

  	
   

  
	
  “Seed” and
  Start-up

  	
   

  	
  50% - 70%

  	
   

  	
  50% - 70%

  	
   

  	
  60%-80%

  	
   

  	
  100% - 125%

  	
   

  
	
  First Stage
  or “Early Development”

  	
   

  	
  40% - 60%

  	
   

  	
  40% - 60%

  	
   

  	
  50%

  	
   

  	
  60%

  	
   

  
	
  Second Stage
  or “Expansion”

  	
   

  	
  35% - 50%

  	
   

  	
  30% - 50%

  	
   

  	
  40%

  	
   

  	
  50%

  	
   

  
	
  Bridge/IPO

  	
   

  	
  25% - 35%

  	
   

  	
  20% - 35%

  	
   

  	
  25% - 30%

  	
   

  	
  30% - 40%

  	
   

  

 

(1) Plummer, James L., “QED Report on Venture
Capital Financial Analysis” (Palo Alto: QED Research, Inc., 1987).

(2) Scherlis, Daniel
R. and William A. Sahlman. “A
Method for Valuing High-Risk, Long Term, Investments: The “Venture Capital
Method” (Boston: Harvard Business School Publishing, 1989).

(3) William Rygrave, Babson College Mass., as
quoted in the Expert’s Report by Pricewaterhouse Coopers, Aotea Bio Limited
Prospectus and Investment Statement, 14 November 2002.

(4) Houlihan Valuation Advisors and Venture One
study on pricing of venture capital investments in Technology and Life Sciences
Companies in the United States, January 1993 to June 1996.

 

We considered
the risks to Apollo LNG relative to the companies observed in the studies. The Company’s
cash flow risk is solely related to execution of the business plan. Apollo LNG
has an established product and customer base. The Company intends to hedge
commodity risk, limiting their exposure to fluctuations in natural gas prices.
Accordingly, we concluded that Apollo LNG would be more likely to obtain
capital through bridge financing or debt, which we verified through discussions
with management. Companies in a similar stage of development (bridge/IPO) to
Apollo LNG require rates of return between 20 and 40 percent. Since Apollo LNG
forecasts positive earnings by 2010 and will mature by the end of the forecast
period, the Company would be on the lower end of the risk profile. Based on the
factors mentioned above, we selected a discount rate of 20 percent. 

 

Terminal
Multiple Selection

 

Since Apollo
LNG operates in the alternative energy industry, we concluded that at the
terminal period in 2011, potential buyers include oil and gas refiners.
Therefore, we performed a Capital
IQ search for oil and gas
refiners, excluding companies engaged in oil and gas exploration and development.
Based on the results, we concluded that ALJ, DK, HOC, LYO, SUN, TSO, VLO, WNR,
XTXI were all refiners that would most likely be a potential buyer of Apollo
LNG, summarized in Exhibit 7. Accordingly, based on the latest twelve month
revenue and EBITDA for each of these companies, we calculated MVIC-to-EBITDA
(cash-free) and MVIC-to-revenue 

 

7

 

(cash-free)
multiples. Since Apollo LNG expects much higher profit margins than standard
oil and gas refiners, we did not rely on MVIC-to-revenue multiples. Instead, we
relied on an MVIC-to-EBITDA multiple based on the selected companies to arrive
at a multiple for the terminal cash flow of Apollo LNG. Although the selected
companies had a median terminal multiple of 5.0 times, we performed a
historical analysis of each company’s historical MVIC-to-EBITDA (cash-free)
multiples for the previous five years. After excluding two outliers, LYO and
XTXI, the average MVIC-to-EBITDA (cash-free) was 6.2 times, as shown in Exhibit
8.  Since growth potential for
alternative fuels is higher for Apollo LNG in the future than for standard oil
and gas refiners, we selected a 7.0 times EBITDA for our terminal multiple. 

 

Conclusion

 

Based on the
management provided forecasts, terminal multiple analysis, discount rate
analysis,  and our extension of the
forecast through 2011 for Apollo LNG, we performed a discounted cash flow
analysis to determine the MVIC. We applied a 7.0 times EBITDA to determine the terminal
period cash flow and discounted all cash flows at the aforementioned 20 percent
discount rate. We concluded a value of $33,100,000 (rounded) for the value of
Apollo LNG based on the discounted cash flow method, as shown in Exhibit 9.
This value includes the nonoperating assets.

 

Sensitivity
Analysis

 

We conducted a
Monte Carlo simulation to test the sensitivity to the value of the assumptions within
the forecast. We elected to vary two variables: commodity profit per gallon and
operating expenses. For each variable, we applied a triangular distribution.
For the commodity profit per gallon, we sensitized the value plus or minus
$0.02. For the expenses, we considered the relative levels of operating
expenses as shown below. The percentages reflect the percent of 2007 original
forecasted operating expenses, grown at a 5 percent inflation rate.

 

	
   

  	
   

  	
  2007

  	
   

  	
  2008

  	
   

  	
  2009

  	
   

  	
  2010

  	
   

  	
  2011

  	
   

  
	
  Low

  	
   

  	
  50.0

  	
  %

  	
  40.0

  	
  %

  	
  35.0

  	
  %

  	
  35.0

  	
  %

  	
  35.0

  	
  %

  
	
  Expected

  	
   

  	
  75.0

  	
  %

  	
  50.0

  	
  %

  	
  50.0

  	
  %

  	
  50.0

  	
  %

  	
  50.0

  	
  %

  
	
  Max

  	
   

  	
  100.0

  	
  %

  	
  75.0

  	
  %

  	
  60.0

  	
  %

  	
  60.0

  	
  %

  	
  60.0

  	
  %

  

 

8

 

We considered
the best case scenario in 2007 to be 50 percent of the originally forecast expenses.
As a worst case scenario, operating expenses would equal the original forecast.
As stated previously, management anticipated 50 percent cost savings over the
original forecast, with a maximum savings of two-thirds. We tightened the range
of variability later in the forecast. 

 

The Monte
Carlo analysis yielded an expected value of $33,300,000 with a standard
deviation of $1,700. The values ranged from $27,500,000 to $39,300,000, as
shown in Exhibit 10.

 

Internal
Transaction Method

 

On November
30, 2005, Apollo LNG was formed by its parent company, Apollo Resources. As such,
it was a wholly owned subsidiary as of the formation date of the Company. The transaction
which resulted in the formation of the Company was structured as indicated in management
provided transaction materials as follows: 

 

•                  Apollo LNG
purchased all stock of TxHLDM, Inc. for a consideration of a $6 million note
and $4.5 million in cash, totaling $10.5 million.

 

•                  Apollo LNG
purchased 100 percent of the member units of Applied LNG Technologies U.S.A.,
L.L.C. for 25 million preferred shares in Apollo LNG (12.5 million shares of Preferred
Series A and 12.5 million shares of preferred Series B). As the shares were $1.00
per share par value, the total consideration paid was $25 million.

 

Conclusion

 

Thus,
indicated by the total assets on Apollo LNG’s opening balance sheet based on
these transactions which formed the Company, we concluded a value of
$39,300,000 for the value of Apollo LNG (MVIC), including nonoperating assets
of $3,837,700, as shown in Exhibit 11. Due to the proximity of this transaction
to our Valuation Date, we considered this transaction to be reasonably
representative of the value of Apollo LNG. 

 

9

 

Correlation

 

The results of
the valuation techniques applied to Apollo LNG are as follows: 

 

	
  Discounted cash flow method

  	
   

  	
  $

  	
  33,100,000

  	
   

  
	
  Internal transaction method

  	
   

  	
  $

  	
  39,300,000

  	
   

  

 

The discounted
cash flow method considered the expected cash flows of Apollo LNG, decrease in
revenues expected from low natural gas prices, and expected excise tax benefit.
The internal transaction method took into account that the Company was formed
less than a year before the Valuation Date; therefore, we deemed it to be
representative of the current value of Apollo LNG.  Accordingly, we gave both methods equal
weight. 

 

The weighting
of the market and income approaches leading to a single value indication is shown
in Exhibit 12.

 

Conclusion

 

Based upon the
facts and assumptions presented above, we concluded an MVIC value of $36,000,000
(rounded) for Apollo LNG.

 

Consideration Paid for Apollo LNG

 

EBOF plans to
pay for Apollo LNG in shares of EBOF common stock. Although EBOF shares are
publicly traded, we considered the potential for the stock received by Apollo
Resources to be worth less than the trading price. Additionally, we noted that
Apollo Resources already owns over 63 percent of EBOF. 

 

Transaction

 

The Share
Exchange Agreements stipulate that ARI will receive 9,422,111 shares of EBI common
stock in exchange for ARI’s shares of ALNG common stock (25,000,000 shares) and

10

 

other
shareholders receive 9,422,111 shares of EBI common stock in exchange for
24,019,608 shares of ALNG common stock. As a result of the Transaction, ALNG
will become a wholly-owned subsidiary of EBI.

 

To determine
the common shares to be exchanged, EBI subtracted the debt of $6,000,000 owed to
First Capital Corporation and divided the remaining $30,000,000 of value by EBI’s
closing stock price on November 14, 2006 ($1.99) less a restricted stock
discount of 20 percent. The remaining debt of $5,000,000 owed to Ken Kelly by
Apollo LNG will be exchanging that unsecured note with Apollo Resources for
shares of its common stock. 

 

Discount
to EBOF Stock

 

We recognize
that there are trading restrictions on the EBOF stock and the number of shares
to be transferred will represent a significant percentage of the outstanding
shares of EBOF.  Accordingly, we
conducted research regarding discounts on restricted stock sales, as discussed below.

 

Restricted
Stock

 

According to
SEC guidance in Accounting Series Release (“ASR”) No. 113, the fair value of restricted
securities depends on their inherent worth, without regard to the restricted
feature,  adjusted for any diminution in
value resulting from the restrictive feature. Further, additional guidance
noted by the FASB in its April 2003 board meeting indicated that consideration
of the fair value and volatility of an unrestricted unit of the same security,
the nature and duration of the restriction, and the risk-free interest rate
should be considered in determining the fair value of restricted securities. In
following the guidance in ASR No. 113 and by the FASB board in our analysis of
the restricted stock, we analyzed restricted stock transactions, specifically
those within various restricted stock studies, to identify characteristics
similar those of the EBOF restricted stock and the affects of those
characteristics on the magnitude of discounts relative to the publicly traded
value of identical, unrestricted shares. Our consideration focused on the specific
characteristics of the EBOF restricted stock. 

 

11

 

We utilized
studies of restricted stock sales in conjunction with the specific factors
related to the restricted EBOF shares to estimate an appropriate discount.

 

Empirical
Restricted Stock Research

 

We considered
the major studies relating to sales of restricted stock that will be readily marketable
within 24 months (these studies preceded reduction of the required holding
period to 12 months) and, therefore, provide liquidity to potential investors.
The restricted stocks analyzed in these studies would be fully marketable at
the end of two years. The first study occurred in 1971 when the SEC issued its
Institutional Investor study Report, H.R. Doc. 92-64 (Vol. 5), 92d.  Cong., 1st Sess. This study was based on more
than 300 private transactions of the restricted stock of corporations that had
shares of the same class of stock, which were publicly-traded. 

 

SEC
Institutional Investor Study

 

The SEC
Institutional Investor Study is one of the most extensive studies conducted on
the topic of restricted securities. This research project provides some
guidance for measuring the discount, based on the actual experience of the
marketplace. For the period surveyed (January 1, 1966 through June 30, 1969),
the discount allowed for restricted securities from the trading price of the
corresponding unrestricted securities was generally related to the following
four factors:  earnings patterns, sales,
market exchange, and resale agreement provisions. The stock of a company with
volatile earnings and sales, traded on the OTC market and without resale agreement
provisions, will require a larger restricted stock discount than the stock of a
company with stable earnings and sales traded on the NYSE and with resale
agreement provisions.  According to the
SEC study, the restricted stocks analyzed sold at a mean average discount of 25.8
percent to the same unrestricted securities. The study also found that the
median discount for restricted stock of over-the-counter, nonreporting
companies was between 30.1 percent and 40 percent. 

 

The SEC study
was endorsed by the Internal Revenue Service in Revenue Ruling 77-287.

 

12

 

Other
Restricted Stock Studies

 

Milton Gelman
(“Gelman”) analyzed 89 transactions from 1968 to 1970 of the prices paid for restricted
shares by four closed-end investment companies. This study indicated the median
restricted security discount was 33 percent, with over 60 percent of the
transactions having discounts greater than 30 percent.(1)  

 

Robert Moroney
(“Moroney”), considered 10 registered investment companies that held a total of
146 blocks of restricted equity securities. The study determined the companies’
original cash purchase discounts averaged 35.6 percent, and the median discount
was 33.0 percent compared with the prices of securities of the same issuers
that were not restricted.(2)  

 

A study by
Michael Maher (“Maher”) focused on reports filed with the SEC by four mutual
fund companies for 1969 through 1973, with respect to restricted common stock
purchased by them.  The study concluded
that the stocks’ mean discount was 35.4 percent.(3) Discounts were derived by comparing
the funds’ costs for the stock to market values of equivalent unrestricted
securities. 

 

Robert Trout (“Trout”)
reviewed 60 restricted stock purchases by mutual funds from 1968 to 1972. The
study indicated the discount averaged 33.4 percent from the freely traded
price.  Trout also concluded that stocks
listed on national exchanges had lower discounts on restricted stock transactions
than did companies with stock traded OTC.(4)  

 

Standard
Research Consultants employees, Bill Pittock and Charlie Stryker, analyzed
private placements of restricted common stock from 1978 to 1982. The median
discount of the 28 private placements studied approximated 45.0 percent. The
study also indicated the size of the 

 

(1) Gelman, Milton, “An Economist-Financial
Analyst’s Approach to Valuing Stock in a Closely-Held Company,” Journal of Taxation, June 1972, pp. 353.

(2) Moroney, Robert E., “Most Courts Overvalue
Closely-Held Stocks,” Taxes, March
1973, pp. 144-55.

(3) Maher, J. Michael, “Discounts for Lack of
Marketability for Closely-Held Business Interests, “ Taxes, September 1976,

pp. 562-71.

(4) Trout, Robert R., “Estimation of the Discount
Associated with the Transfer of Restricted Securities,” Taxes, June 1977,

pp. 381-85. 

 

13

 

discount was
affected by the revenue size of the issuing company, with smaller issuers
tending to have larger discounts.(5)

 

Willamette
Management Associates (“Willamette”) analyzed private placements of restricted stocks
from January 1, 1981, to May 31, 1984. The study identified 33 transactions
that could be classified as arm’s length. The median discount for the restricted
stocks compared with otherwise identical unrestricted shares was 31.2 percent.
The slightly lower than average percentage discounts for private placements
during this time may be attributable to the somewhat depressed pricing in the
public stock market, which, in turn, reflected the recessionary economic conditions
prevalent during most of the period of the study.(6)  

 

William Silber
(“Silber”) studied 69 transactions involving 310 private placements of publicly
traded common stock occurring without warrants or other special provisions from
1981 to 1988.  Silber concluded the
discount average of 33.7 percent for the restricted stocks when compared with
otherwise identical unrestricted shares.(7)  

 

In a study by
FMV Opinions, Inc. (“FMV”), Lance Hall and Timothy Polacek reviewed over 100 restricted
stock transactions occurring between 1979 and early 1992. They concluded an
average discount of 23.0 percent.(8)

 

In a recent
updated study, referred to in Shannon Pratt’s
Business Valuation Update (September 2003), FMV analyzed 182
restricted stock transactions occurring between 1997 and 2000. It was thought
that these transactions would display a lower discount for lack of
marketability because they transpired after the SEC Rule 144 holding period was
changed from two years to one year.  However,
for the shorter and theoretically more liquid, one-year holding period the
median discount was higher at 25.9 percent. FMV determined from their studies
that there was a 

 

(5) Pittock, William F., and Charles H. Stryker, “Revenue
Ruling 77-276 Revisited,” SRC Quarterly
Reports, Spring 1983, pp. 1-3.

(6) Pratt, Shannon P., Robert F. Reilly, and
Robert P. Schweihs, Valuing a Business, The Analysis and Appraisal of Closely-Held
Companies, (New York: McGraw Hill, 2000), pp. 400.

(7) Silber, William L., “Discounts on Restricted
Stock: The Impact of Illiquidity on Stock Prices,” Financial Analysis Journal, July-August 1991, pp. 38-44.

(8) Hall, Lance S., and Timothy C. Polacek, “Strategies
for Obtaining the Largest Valuation Discounts,” Estate Planning, January/February 1994, pp. 38-44.

 

14

 

correlation
between the marketability discount and market value, total assets, revenues, undiscounted
price per share and volatility of the underlying asset price. FMV concluded
that the primary determinant of the discount for lack of marketability was the
volatility of the underlying asset price. Based on the two data series
(one-year holding period versus two-year holding period), the difference in
volatility was dramatic. The median volatility under the two-year holding
period was 68.4 percent, while the median for the one-year holding period was
93.8 percent. FMV stated “All things being equal, an investor would demand a
higher discount for lack of marketability for an illiquid asset with higher
volatility.” 

 

Bruce Johnson
examined 72 restricted stock transactions in “Restricted Stock Discounts,
1991-1995,” Vol. 5, No. 3, Business
Valuation Update (1999). The overall discount concluded in the Johnson
study was 20 percent. Excluding banks and real estate investment trusts, which comprised
approximately 10 percent of the transactions, the discount averaged 22 percent.

 

Summary
of Restricted Stock Studies

 

The results of
the restricted stock studies are summarized below:

 

	
  Study

  	
   

  	
  Median Discount

  	
   

  
	
  Institutional Investor Study

  	
   

  	
  25.8

  	
  %

  
	
  Gelman

  	
   

  	
  33.0

  	
  %

  
	
  Moroney

  	
   

  	
  33.0

  	
  %

  
	
  Maher

  	
   

  	
  35.4

  	
  %

  
	
  Trout

  	
   

  	
  33.4

  	
  %

  
	
  Pittcock and Stryker

  	
   

  	
  45.0

  	
  %

  
	
  Willamette

  	
   

  	
  31.2

  	
  %

  
	
  Silber

  	
   

  	
  33.7

  	
  %

  
	
  Hall and Polacek

  	
   

  	
  23.0

  	
  %

  
	
  Johnson

  	
   

  	
  20.0

  	
  %

  
	
  Average Discount

  	
   

  	
  31.4

  	
  %

  

 

15

 

These studies
concluded empirically that a discount for lack of marketability exists due to transfer
restrictions. All the studies have historically concluded a mean discount for
lack of marketability of 20 to 35 percent with an average of 31.4 percent. However,
effective April 29, 1997, the SEC changed the rule regarding the holding period
for restricted stock to one year.  Still,
insiders will generally have to dribble out their shares in order to achieve
liquidity. 

 

Estimation
of Upper Limit of Discount Using a Put Option

 

The price of a
put option with an exercise price equal to the Average Closing Price of the
EBOF stock provides a theoretical upper limit to the discount for lack of
marketability related to the restricted stock.(9) We used the Black-Scholes
option-pricing model to determine the fair value of a put option on EBOF stock.
The Black-Scholes option-pricing model is commonly used by professional
investors for buying and selling options. This model was designed to calculate
the value of a put or call option over a specified time. Fischer Black and
Myron Scholes developed their option-pricing model under the following
assumptions: (1) asset prices adjust to prevent arbitrage, (2) stock prices
change continuously, and (3) stock returns follow a log-normal distribution.
The model assumes that the interest rate and the volatility of the stock remain
constant over the life of the option. The model consists of six variables: (1)
market price of the underlying security, (2) exercise price, (3) risk-free
rate, (4) time to expiration, (5) variance (volatility), and (6) continuous
dividend yield. All the variables are on an annualized basis. The Black-Scholes
formulas for calls and puts are as follows: 

 

(9) Longstaff, Francis A., “How Much Can
Marketability Affect Security Values”, Journal of Finance, Vol. L, No. 5, December
1995.

 

16

 

	
   

  	
   

  	
  Call option 

  	
  =

  	
  

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Put option 

  	
  =

  	
  

  
	
   

  	
   

  	
   

  
	
   

  	
  Where:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  S

  	
  =

  	
  Underlying
  stock price at valuation date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  X

  	
  =

  	
  Exercise
  price

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  q

  	
  =

  	
  Dividend
  yield (annual dividends paid ÷ price)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  e

  	
  =

  	
  Natural log
  base, a constant which equals approximately 2.71828

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  r

  	
  =

  	
  Risk-free
  rate

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  T

  	
  =

  	
  Time to
  expiration in years

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  N( )

  	
  =

  	
  Cumulative
  normal distribution function (1)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  d1

  	
  =

  	
  

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  d2

  	
  =

  	
  

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ln

  	
   = 

  	
  Natural log

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  

  	
  =

  	
  Continuously
  compounded annualized variance

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  =

  	
  Continuously
  compounded annualized standard deviation (volatility)

  
							

 

(1)N(d) is the probability that a normally
distributed random variable x, with a zero mean and a standard deviation of 1.0, will be less than or equal
to d. N(d1) in the Black Scholes formula is the option delta.  Thus,
the formula tells us that the value of a call is equal to an investment of N(d1)
in the common stock less
borrowing of Xe-r (T-t)N(d2).  

 

17

 

Volatility

 

Volatility is
a measure of the amount by which a price has fluctuated (historical volatility)
or is expected to fluctuate (expected volatility) during a period. The
volatility of a stock is the standard deviation of the continuously compounded
rates of return on the stock over a specified period. That is the same as the
standard deviation of the differences in the natural logarithms of the stock
prices plus dividends, if any, over the period. The higher the volatility, the
more the returns on the stock can be expected to vary—up or down. Volatility is
typically expressed in annualized terms that are comparable regardless of the
time period used in the calculation, for example, daily, weekly, or monthly
price observations. 

 

We estimated
the stock price volatility that an investor would anticipate for EBOF based on
the historic price volatility of EBOF. Based on our analysis of the historical
price volatility of EBOF, we concluded that the appropriate volatility estimate
would be 65 percent.

 

Application of the Black-Scholes Option
Pricing Model

 

We used the
Black-Scholes Model to calculate the value of a put option on a share of EBOF stock
that could be used to hedge the risk of downward movement until the shares
could be sold.  The risk-free interest
rates utilized was the one year Treasury note. This generally matched the expected
holding period under Rule 144 for the underlying shares. We used the November
14, 2006 Closing Price of $1.99 previously derived as the market price to input
into the Black-Scholes Model. The indicated range of fair values for the put
option was from $0.32 to $0.46  (both
rounded), representing an implied discount ranging from 22 percent to 33
percent, which we view would represent the upper limit on the inherent discount
applicable to the EBOF restricted shares given as consideration. 

 

Private
Placement

 

Another
potential indication of the discount for the restricted stock price is based on
the price of a private placement of the restricted stock. A private placement
could provide a method of generating liquidity in the restricted stock prior to
the end of the Rule 144 holding period. In a study of 619 private placements of
public equity occurring from 1980 to 1996 described in the 

 

18

 

paper, “Long-run
Performance Following Private Placements of Equity”, by Michael Hertzel, Michael
Lemmon, James S. Linck, and Lynn Rees, a mean discount of 16.5 percent and
median discount of 13.4 percent were observed. The subject transactions in this
study had a mean dollar proceeds of $12.7 million and a median dollar proceeds
of $4.5 million. The equity issued represented a mean of 21.2 percent of the
total shares outstanding with a median of 13.9 percent.  In comparison, the EBOF restricted stock
issued would represent a smaller block of shares, thus arguing for a smaller
discount than those observed in the study. 

 

Additionally,
as a result of discussions with an investment banking contact from Bear
Stearns, we were informed that public offerings generally come at approximately
a 5 to 6 percent discount for registered shares in an organized sales process,
and that private investment in public equity (“PIPE”) transactions are
currently completed with discounts approximating 15 percent.  Shares sold in PIPE transactions are
generally required to be registered by the issuer within a few months after
sale. 

 

Secondary
Public Offering Method

 

A secondary
offering is a registered offering made by a current shareholder of a large
block of a security which has been previously issued to the public. Under
normal conditions, the proceeds of the sale go to the holder of the block sold
by the current shareholder, not the issuing company, and the number of shares
outstanding does not change. The factors that need to be considered under a
secondary offering are a Rule 144 discount, investment banking fees and
commissions, and the cost of registration. 

 

We assumed
that in order to maximize the value of the shares, the Company would choose to dispose
of them at the earliest date possible. Thus, a dribble-out discount would not
apply.  However, the shares would be
subject to the following discounts under the secondary public offering method. 

 

19

 

Investment
Banking Commission and Underwriting Fees

 

A secondary
offering of the shares requires registering the shares and conducting a public offering.
Scott McNeill, an investment banker in the Dallas office of Raymond James
Financial, Inc., indicated that typical investment banking commissions range
between 5.0 and 6.0 percent of the net proceeds. Thus, we concluded an
appropriate investment banking commission and underwriting fee cost of between
5.0 and 6.0 percent of the total value of the sale. 

 

Other
Registration Costs

 

We also
assumed that in connection with a secondary offering, the Company would incur
other costs such as legal fees. We estimated that these costs would range
between 0 and 2 percent of the total value of the transaction. 

 

Blockage
Discount

 

The market
price quoted for EBOF’s common stock is for a single unit. Due to the size difference
between the average weekly trading volume and the number of common shares, a discount
from the market price is required to reflect the market’s reaction to the
excess shares. It is therefore appropriate to consider a blockage discount
above and beyond the discount for lack of marketability previously described.
According to The Handbook of Advanced
Business  Valuation, 

 

“A blockage
discount is a deduction from the actively traded price of a stock because the
block of stock to be valued is so large relative to the volume of actual sales
on the existing market that the block could not be liquidated within a reasonable
time without depressing the market price...Sales of small blocks of stocks do not
provide conclusive evidence regarding the discount for a large block of the
same stock.”(10)

 

(10) Robert F. Reilly and Robert P. Schweihs, eds.
The Handbook of Advanced Business Valuation,
(New York: McGraw-Hill, 2000, pp. 140).

 

20

 

Appraisers
must consider possible alternative disposition venues for the subject block and
determine which procedure would be most feasible to dispose of the stock over a
reasonable time period. Options include: (a) secondary distribution; (b)
special offering; (c) exchange distributions; (d) private placement; and (e)
sales made in smaller lots over a reasonable period of time. 

 

To estimate
the appropriate blockage discount, our analysis considered the following:

 

•                  Empirical
research on block trades;

•                  Prior IRS
rulings on blockage discounts;

•                  Characteristics of
the Company’s historical trading patterns and earnings; and

 

Empirical
Research and Court Cases

 

Our blockage
discount analysis recognized professional studies regarding the relationship
and correlation between the price per unit of a large block trade and the price
per unit of a small lot trade. We researched articles and other written reports
on restricted securities and block trades. 
From this research, we compiled relevant and related articles and
reports analyzing the applicability of a blockage discount for large blocks of
stock. Empirical research indicated block trades have a tendency to trade at a
lower price from the previous transaction price than smaller blocks of similar
securities. Large blocks tend to upset the normal supply/demand relationship for
a particular stock by imposing an excess supply on the market, resulting in
downward price pressure and a change in price to a new lower price until the
block is absorbed. These research papers provide: (1) the theoretical reasons
how and why the price per share of a block trade is different from the price
per share of a small lot transaction; and (2) provide research support that indicates
the price per share of large block trades of common stock related to the
transaction price of a small lot trade. 

 

One article
points out that, “...the adverse effects of ‘blockage’ on a stock’s marketability
and thus on its fair market value can be tremendous...decided tax court cases
have routinely reached

 

21

 

30 to 35
percent discounts from market price.”(11) The following chart summarizes
several relevant cases in which blockage discounts were awarded by the court.(12)

 

	
   

  	
   

  	
   

  	
   

  	
  Size of Block

  	
   

  	
  Applicable

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Relative to Total

  	
   

  	
  Discount Allowed

  	
   

  
	
  Tax Court Case(13)

  	
   

  	
  Year

  	
   

  	
  Shares Outstanding

  	
   

  	
  by Court

  	
   

  
	
  Estate of Foote

  	
   

  	
  1999

  	
   

  	
  2.2

  	
  %

  	
  3.3

  	
  %

  
	
  Estate of Harriet R. Mellinger

  	
   

  	
  1999

  	
   

  	
  27.9

  	
  %

  	
  25.0

  	
  %

  
	
  Estate of Saul R. Gilford

  	
   

  	
  1987

  	
   

  	
  22.9

  	
  %

  	
  33.0

  	
  %

  
	
  William O. Adair

  	
   

  	
  1987

  	
   

  	
  2.1

  	
  %

  	
  5.0

  	
  %

  
	
  Prentice I. Robinson

  	
   

  	
  1985

  	
   

  	
  3.2

  	
  %

  	
  18.0

  	
  %

  
	
  Rifkind vs. U.S.

  	
   

  	
  1984

  	
   

  	
  2.0

  	
  %

  	
  20.0

  	
  %

  
	
  Saul P. Steinberg

  	
   

  	
  1983

  	
   

  	
  6.1

  	
  %

  	
  27.5

  	
  %

  
	
  Estate of Frederick P. Stratton

  	
   

  	
  1982

  	
   

  	
  0.8

  	
  %

  	
  25.0

  	
  %

  
	
  Estate of Sophia Brownell

  	
   

  	
  1982

  	
   

  	
  5.2

  	
  %

  	
  33.3

  	
  %

  
	
  Louis B. Gresham

  	
   

  	
  1982

  	
   

  	
  <1.0

  	
  %

  	
  33.3

  	
  %

  
	
  Eastern Service Corporation

  	
   

  	
  1980

  	
   

  	
  <1.0

  	
  %

  	
  75.0

  	
  %

  
	
  The Estate of Bernard T. Kessler

  	
   

  	
  1978

  	
   

  	
  5.7

  	
  %

  	
  48.3

  	
  %

  
	
  Harold F. Stroupe

  	
   

  	
  1978

  	
   

  	
  <1.0

  	
  %

  	
  40.0-43.5

  	
  %

  
	
  Melvin Roth

  	
   

  	
  1977

  	
   

  	
  <1.0

  	
  %

  	
  60.0

  	
  %

  
	
  John S. Bolles

  	
   

  	
  1977

  	
   

  	
  <1.0

  	
  %

  	
  45.0

  	
  %

  
	
  Bernard Miller

  	
   

  	
  1975

  	
   

  	
  3.0

  	
  %

  	
  50.0

  	
  %

  

 

It is
important to note that the larger proportionate size of a block did not
necessarily translate into a larger discount for that block. Additionally, we
recognized that some of the court cases noted in the previous table may take
into account both blockage and marketability discounts.  Alternatively, The Handbook of Advanced Business Valuation estimates that
pure blockage discounts fall within a range of 0 to 15 percent.(14) Another common practice, according
to Dr. 

(11) Moore, Philip W. “‘Blockage’ Redux: The
Challenge Posed by Blockage,“  Trusts and Estates” (February 1992, pp. 36).

(12) We did not rely on these court cases as a
means of developing or substantiating our discount. Rather, we considered these
cases as supporting evidence that the courts have historically recognized the
concepts and that the application of discounts is appropriate. We reviewed the
facts and circumstances of each case as well as the blockage discount
concluded, and then considered the range for blockage discounts that the courts
have allowed.

(13) The Gilford,
Adair, Robinson, Gresham, Eastern Service, Kessler, and Roth cases all represented blocks of stock
traded on an OTC market but some of allowed discounts represented both blockage
and restriction discounts.

(14) Robert F. Reilly and Robert P. Schweihs, eds.
The Handbook of Advanced Business Valuation,
(New York: McGraw-Hill, 2000, pp. 142).

 

22

 

Brian Becker
and Gary Gutzler, is to, “...take a 5 to 15 percent blockage discount off of
blocks of publicly-traded stocks that are 10 or more times the size of the
stock’s typical daily volume.”(15)

 

Specific
Characteristics of EBOF

 

Mr. Moore’s
article, “Blockage Redux: The Challenge Posed by Blockage,” Trusts and Estates (February 1992) sets
forth relevant factors in concluding blockage discounts. We considered this methodology
in our analysis and investigated the following characteristics of the
underlying company and shares to be disposed.

 

1)                   Percentage
of shares represented by the subject block relative to the number of shares outstanding;

 

2)                   The
share size of the subject block relative to the daily, weekly, quarterly, and
annual volume of the shares of the subject stock;

 

3)                   The
volatility of the price of the subject stock and the actual price changes in the
stock under recent and preceding market conditions;

 

4)                   The
size of the trading “float” of the stock, relative to the number of shares
outstanding; 

 

5)                   The
effect of the subject block on the market, specifically, how much daily volume
could be increased without affecting price and how long it would take to
dribble out the stock into the market;

 

6)                   Whether
the stock trades on a recognized national stock exchange, on Nasdaq, over-the-counter,
or on a regional exchange;

 

7)                   The
relative market price performance of the stock as compared to that of
comparable companies;

 

8)                   The
extrapolated dollar value of the total block at market or discounted price;

 

9)                   The
trend of the price and financial performance of the subject company as compared
with industry and general market equity yields;

 

10)             The
dividend yield (and dividend policy) of the subject company as compared to
standard dividend yields;

 

11)             The
outlook for the company, its industry, and the national and regional economy;

 

(15) Gutzler, Gary and Becker, Brian. “Should a
Blockage Discount Apply? Perspectives of Both a Hypothetical Willing Buyer and
a Hypothetical Willing Seller,” (Business
Valuation Review, March 2000).

 

23

 

12)             The
existence of recent large block trades or major secondary offerings of the
subject stock or the guideline companies;

 

13)             The
existence of significant news that may have affected stock price behavior of
the subject company;

 

14)             The
total number of shareholders of the company and type of shareholders (i.e.,
number of institutional investors and their proportion of ownership);

 

15)             Any
specific features or attributions of the stock (e.g., voting/nonvoting,
classes);

 

16)             Whether
there are resale restrictions on the block of stock;

 

17)             Analyst
coverage and recent changes in investment recommendations; and

 

18)             Number
of market makers for the subject company.(16)

 

Large Block Transactions of Shares of EBOF

 

Revenue Ruling
77-287 guidelines require an analysis of the subject company’s stock price and volume
30 days prior to the Valuation Date. Our analysis of the price/volume
relationship exceeded the guidelines of Revenue Ruling 77-287. Specifically, we
analyzed daily data from S&P 500 from November 14, 2005 (excluding the IPO)
to the Valuation Date to identify large block trades. We analyzed large block
transactions to determine the historical sensitivity of EBOF’s unit price to
volume traded.  

 

The days of
high trading volume showed no consistent declines in unit price from the prior
days or from the trading price three days prior to the large block activity
day. We reviewed the block trades from November 14, 2005 to the Valuation Date
and could not find any significantly large transactions. The highest activity
day, other than the IPO, was 147,330 shares (the “Block”), only 1.0 percent of
the total amount of the common shares to be disposed under a private placement.
The stock price paid for the Block represented a 20 percent premium from the
prior day’s trading price and a 50 percent premium from the stock price
three-days prior to the trade of the Block. The 10 most voluminous trading days
resulted in median premiums from the previous day’s trading price and the
three-days prior to the trade of a 1.9 and 23.4 percent, respectively. 

 

(16) Some of these characteristics can also be
found in The Handbook of Advanced Business
Valuation, (New York: McGraw-Hill, 2000, pp. 144) by Robert F.
Reilly and Robert P. Schweihs, eds.

 

24

 

Thus, we
determined that large block trades do not appear to have a significant
depressing effect on the prevailing unit price for EBOF.

 

However, the
trading activity covered blocks smaller than that of the common shares. In
general, the larger the block, the higher the discount applied to the block.
The size of the block of the common shares is considerably larger than any
block analyzed. In addition, the days of high trading volume that we analyzed
represent investors buying shares rather than selling; thus, they the majority
result in premiums. Therefore, we concluded there would be a larger blockage discount
applicable to the common shares. 

 

Summary
on Blockage

 

The common
shares were significantly larger than the average daily volume over the four
weeks prior to the Valuation Date. Due to the significant difference between
the largest trade of EBOF’s publicly-traded shares and the number of shares to
be exchanged, we concluded our discount would be appropriate for the following
reasons:

 

1.                    Research
articles indicated the appropriateness for a blockage discount when estimating
the value of large blocks of publicly-traded securities. The appropriate range
of discounts was wide and should be based on the size of the Common Units
relative to the normal trading volume of the subject security. 

 

2.                    The
shares to be exchanged 18,844,222 represented 8.1 percent of total common
shares outstanding and approximately 624 times the average daily trading volume
(30,176 shares)  based on the four weeks
(20 trading days) preceding the Valuation Date. 

 

3.                    Court
cases indicated the appropriate blockage discount was dependent upon the size
of the Common Units in relation to the normal daily volume, float, total
outstanding units, and the trading activity of the stock. 

 

25

 

Conclusion

 

Because Apollo
Resources owns 63 percent of EBOF, we concluded the most likely sale of stock would
be through a secondary offering. Accordingly, we concluded a restricted stock
discount of 20 percent for the EBOF common stock to be exchanged. Applying this
discount to the $1.99  market price of
the EBOF stock as of November 14, 2006, we concluded an exchange price per share
of $1.59. Based on this exchange price per share, we concluded an amount of 18,844,222  shares to be exchanged, as shown in Exhibit
12.

 

Based on the
number of outstanding shares, Apollo Resources would acquire an additional 8.1
percent interest in EBOF.

 

Valuation of Earth Biofuels

 

Overview
of the Company

 

EBOF engages
in the production, distribution, and marketing of biodiesel fuel for sale
through their network of wholesale and retail outlets and is headquartered in
Dallas, Texas. The Company utilizes vegetable oils such as soy and canola oil
as raw material for the production of biodiesel fuel. EBOF focuses their
business in the southern region of the United States, including Texas,
Oklahoma, Mississippi, and Arkansas. Also, the company is expanding their market
in alternative fuels, specifically ethanol, through acquisition. 

 

Analysis
of Forecast

 

Management
provided a monthly income statement and balance sheet forecast through 2009.  The Company expects to increase revenues to
$1,349,072,100 by 2009. Management represented that the significant increase in
revenues is due to start of production of 9 of the Company’s 11 facilities.
Accordingly, gross margin is also expected to increase approximately 32 percent
in 2008. In addition, based on the Company’s previous income losses, we
calculated a net operating loss benefit to be carried forward in the subsequent
years. As the forecast provided was through 2009, we extended it to 2011 based
on management’s estimates of future profitability. We deemed the forecast to be
reasonable based on management’s expectations of rapid expansion and the growth
potential of the alternative energy industry.

 

26

 

Valuation

 

In our
valuation of EBOF, we applied the discounted cash flow analysis to determine
the market value of equity in the Company.

 

Guideline
Company Method

 

EBOF operates
in the alternative energy industry. As such, we conducted Capital IQ searches for biodiesel,
biofuel, LNG, and ethanol producing companies and compared the Company them to
the following seven guideline companies: EPG, FSYS, GPRE, PEIX, RTK, VSE, and
XNL.  We included Apollo Resources (AOOR)
and EBOF (EBOF) in our guideline companies. Also through Capital IQ, we obtained consensus
estimates for each of the guideline companies to calculate forward multiples of
MVIC-to-revenue (cash-free), MVIC-to-EBITDA (cash-free), and price-to-earnings,
as shown in Exhibit 6. The guideline companies, like EBOF, were not profitable
at the Valuation Date. The estimates of future profitability were several years
in the future and represented substantial changes from the current period.
Therefore, we considered the application of the multiples to be unreliable in
the determination of value. Accordingly, we did not rely on the guideline
company method. 

 

Discounted
Cash Flow Method

 

Terminal
Multiple Selection

 

Since EBOF
operates in the alternative energy industry, we concluded that at the terminal
period in 2011, potential buyers include oil and gas refiners. Therefore, we
performed a Capital IQ search for
oil and gas refiners, excluding companies engaged in oil and gas exploration
and development. Based on the results, we concluded that ALJ, DK, HOC, LYO,
SUN, TSO, VLO, WNR, XTXI were all refiners that would most likely be a
potential buyer of Apollo LNG, summarized in Exhibit 7. Accordingly, based on
the latest twelve month revenue and EBITDA for each of these companies, we
formed MVIC-to-EBITDA (cash-free) and MVIC-to-revenue (cash-free) multiples.
Since Apollo LNG expects much higher profit margins than standard oil and gas
refiners, we did not rely on MVIC-to-revenue multiples. Instead, we relied on
an MVIC-to-EBITDA multiple based on the selected companies to arrive at a
multiple for the 

 

27

 

terminal cash
flow of Apollo LNG. Although the selected companies had a median terminal multiple
of 5.0 times, we performed a historical analysis of each company’s historical
MVIC-to-EBITDA (cash-free) multiples for the previous five years. After
excluding two outliers, LYO and XTXI, the average MVIC-to-EBITDA (cash-free)
was 6.2 times, as shown in Exhibit 8.  Accordingly,
we selected a 6.0 times EBITDA for our terminal multiple. 

 

Discount
Rate Selection

 

Since EBOF is
publicly traded and there is no reason to believe that there is unequal
information to cause the market to be overvaluing or undervaluing the stock, we
determined the company’s current market capitalization as fairly representative
of their equity value. Near the valuation date, EBOF had a 20 day average
market capitalization of approximately $454 million, as calculated in Exhibit
16. As such, we estimated an appropriate discount rate which would roughly
reflect the total equity value of the EBOF equal to the market capitalization
to be 35 percent, as shown in Exhibit 17. We compared this rate to the venture
capital study discussed previous. As with Apollo LNG, we considered the range
of discount rates to be 20 to 40 percent. 
Therefore, we considered the implied rate of 35 percent to be
reasonable, although at the high end of the range. 

 

Conclusion

 

Based on the
management provided forecasts, terminal multiple analysis, discount rate
analysis, we performed a discounted cash flow analysis to determine the market
value of equity of EBOF.  Based on our
discounted cash flow analysis, we considered the intrinsic value of EBOF to be
not less than the current market value. 

 

28

 

	
  Appraisers:

  	
   

  
	
   

  	
   

  
	
  

  	
   

  	
  

  	
   

  
	
  Robert K.
  Conklin, CFA

  	
  Douglas K.
  Rudley, CFA

  
	
  Vice
  President

  	
  Senior
  Consultant

  
	
   

  	
   

  
	
   

  	
   

  
	
  Review
  Appraiser:

  	
   

  
	
   

  	
   

  
	
  

  	
   

  	
   

  
	
  Jeff D.
  Balcombe, CPA/ABV, CFA, ASA

  	
   

  
	
  President
  and CEO

  	
   

  

 

29

 

EXHIBITS

 

 

Apollo
LNG, Inc.

Comparative
Summary Balance Sheet

 

	
   

  	
   

  	
  Fiscal years ended

  	
   

  	
  As of

  	
   

  
	
   

  	
   

  	
  September 30,

  	
   

  	
  Jun. 30,

  	
   

  
	
  (in thousands of $ unless
  otherwise noted)

  	
   

  	
  2001

  	
   

  	
  2002

  	
   

  	
  2003

  	
   

  	
  2004

  	
   

  	
  2005

  	
   

  	
  2006

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ASSETS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Current
  assets:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cash and equivalents

  	
   

  	
  0.0

  	
   

  	
  27.6

  	
   

  	
  237.9

  	
   

  	
  69.5

  	
   

  	
  4,032.3

  	
   

  	
  51.5

  	
   

  
	
  Accounts receivable

  	
   

  	
  2,171.3

  	
   

  	
  3,174.0

  	
   

  	
  2,897.8

  	
   

  	
  2,671.9

  	
   

  	
  2,907.1

  	
   

  	
  2,753.1

  	
   

  
	
  Inventory

  	
   

  	
  1,030.5

  	
   

  	
  55.5

  	
   

  	
  79.1

  	
   

  	
  76.9

  	
   

  	
  48.5

  	
   

  	
  468.2

  	
   

  
	
  Prepaid expenses

  	
   

  	
  0.0

  	
   

  	
  89.2

  	
   

  	
  112.4

  	
   

  	
  74.0

  	
   

  	
  100.9

  	
   

  	
  1,524.7

  	
   

  
	
  Accounts receivable, related parties

  	
   

  	
  68.0

  	
   

  	
  638.7

  	
   

  	
  358.6

  	
   

  	
  154.6

  	
   

  	
  248.7

  	
   

  	
  (208.6

  	
  )

  
	
  Recovery claims for vendor cover costs

  	
   

  	
  0.0

  	
   

  	
  1,450.6

  	
   

  	
  523.4

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
  Other receivables

  	
   

  	
  30.0

  	
   

  	
  486.0

  	
   

  	
  140.0

  	
   

  	
  0.0

  	
   

  	
  30.0

  	
   

  	
  1.0

  	
   

  
	
  Other receivables, related parties

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  23.2

  	
   

  	
  61.4

  	
   

  	
  163.7

  	
   

  	
  0.0

  	
   

  
	
  Notes receivable

  	
   

  	
  355.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  1,714.4

  	
   

  	
  25.9

  	
   

  
	
  Total
  current assets

  	
   

  	
  8,857.3

  	
   

  	
  5,921.6

  	
   

  	
  4,372.4

  	
   

  	
  3,108.3

  	
   

  	
  9,245.6

  	
   

  	
  4,615.7

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gross fixed
  assets

  	
   

  	
  11,876.4

  	
   

  	
  16,538.3

  	
   

  	
  16,783.2

  	
   

  	
  16,849.5

  	
   

  	
  24,911.2

  	
   

  	
  17,598.9

  	
   

  
	
  Accumulated depreciation, amortization and
  depletion

  	
   

  	
  (3,263.8

  	
  )

  	
  (3,328.8

  	
  )

  	
  (4,535.5

  	
  )

  	
  (5,702.3

  	
  )

  	
  (6,684.3

  	
  )

  	
  (6,857.8

  	
  )

  
	
  Net fixed
  assets

  	
   

  	
  8,612.5

  	
   

  	
  13,209.5

  	
   

  	
  12,247.7

  	
   

  	
  11,147.2

  	
   

  	
  18,226.9

  	
   

  	
  10,741.1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other
  assets:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Notes receivable

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  21.5

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
  Notes receivable, related parties

  	
   

  	
  0.0

  	
   

  	
  660.2

  	
   

  	
  302.0

  	
   

  	
  1,755.0

  	
   

  	
  9,300.0

  	
   

  	
  3,320.4

  	
   

  
	
  Equipment inventory

  	
   

  	
  0.0

  	
   

  	
  814.9

  	
   

  	
  735.1

  	
   

  	
  1,251.8

  	
   

  	
  436.9

  	
   

  	
  0.0

  	
   

  
	
  Development projects in process

  	
   

  	
  0.0

  	
   

  	
  2,630.3

  	
   

  	
  1,950.3

  	
   

  	
  1,709.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
  Deposits - utilities and gas supply

  	
   

  	
  16.0

  	
   

  	
  21.0

  	
   

  	
  1.0

  	
   

  	
  1.0

  	
   

  	
  451.0

  	
   

  	
  451.0

  	
   

  
	
  Deferred tax assets, net

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  270.6

  	
   

  	
  454.6

  	
   

  	
  433.5

  	
   

  	
  0.0

  	
   

  
	
  Other assets

  	
   

  	
  219.4

  	
   

  	
  202.4

  	
   

  	
  106.9

  	
   

  	
  149.4

  	
   

  	
  92.2

  	
   

  	
  24,767.0

  	
   

  
	
  Total other
  assets

  	
   

  	
  235.4

  	
   

  	
  4,328.9

  	
   

  	
  3,387.4

  	
   

  	
  5,320.8

  	
   

  	
  10,713.5

  	
   

  	
  28,538.4

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total assets

  	
   

  	
  17,705.2

  	
   

  	
  23,459.9

  	
   

  	
  20,007.4

  	
   

  	
  19,576.3

  	
   

  	
  38,186.0

  	
   

  	
  43,895.3

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LIABILITIES
  & EQUITY

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Current
  liabilities:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounts payable

  	
   

  	
  2,862.6

  	
   

  	
  4,164.4

  	
   

  	
  3,787.9

  	
   

  	
  3,357.6

  	
   

  	
  3,733.0

  	
   

  	
  903.6

  	
   

  
	
  Debt in current liabilities

  	
   

  	
  2,292.7

  	
   

  	
  9,809.8

  	
   

  	
  9,582.6

  	
   

  	
  9,555.6

  	
   

  	
  2,855.8

  	
   

  	
  761.3

  	
   

  
	
  Accounts payable, related parties

  	
   

  	
  5,005.0

  	
   

  	
  2,942.9

  	
   

  	
  6,500.7

  	
   

  	
  2,816.5

  	
   

  	
  330.4

  	
   

  	
  0.0

  	
   

  
	
  Accrued expenses and other payables

  	
   

  	
  75.5

  	
   

  	
  109.4

  	
   

  	
  291.2

  	
   

  	
  446.4

  	
   

  	
  1,056.7

  	
   

  	
  0.0

  	
   

  
	
  Accrued interest, related parties

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  340.8

  	
   

  	
  711.4

  	
   

  	
  290.8

  	
   

  	
  0.0

  	
   

  
	
  Unearned revenues

  	
   

  	
  0.0

  	
   

  	
  145.0

  	
   

  	
  5.0

  	
   

  	
  5.0

  	
   

  	
  226.1

  	
   

  	
  0.0

  	
   

  
	
  Unearned grant revenues

  	
   

  	
  0.0

  	
   

  	
  356.5

  	
   

  	
  265.9

  	
   

  	
  225.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
  Bank overdraft

  	
   

  	
  490.0

  	
   

  	
  19.2

  	
   

  	
  46.7

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
  Total
  current liabilities

  	
   

  	
  10,725.7

  	
   

  	
  17,547.3

  	
   

  	
  20,820.8

  	
   

  	
  17,117.4

  	
   

  	
  8,492.8

  	
   

  	
  1,664.9

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other
  liabilities:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Long-term debt

  	
   

  	
  11,283.4

  	
   

  	
  9,859.5

  	
   

  	
  8,201.0

  	
   

  	
  11,373.5

  	
   

  	
  5,731.1

  	
   

  	
  12,529.5

  	
   

  
	
  Deferred tax liability

  	
   

  	
   

  	
   

  	
  38.2

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0.0

  	
   

  
	
  Total other
  liabilities

  	
   

  	
  11,283.4

  	
   

  	
  9,897.7

  	
   

  	
  8,201.0

  	
   

  	
  11,373.5

  	
   

  	
  5,731.1

  	
   

  	
  12,529.5

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total
  liabilities

  	
   

  	
  22,009.1

  	
   

  	
  27,445.0

  	
   

  	
  29,021.8

  	
   

  	
  28,490.9

  	
   

  	
  14,223.9

  	
   

  	
  14,194.4

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Minority
  interest

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  7.5

  	
   

  	
  (5.4

  	
  )

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Equity:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Capital stock

  	
   

  	
  0.0

  	
   

  	
  487.9

  	
   

  	
  487.9

  	
   

  	
  487.9

  	
   

  	
  487.9

  	
   

  	
   

  	
   

  
	
  Preferred stock - Series A

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  12,500.0

  	
   

  
	
  Preferred stock - Series B

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  12,500.0

  	
   

  
	
  Paid-in capital

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  7,680.0

  	
   

  
	
  Retained earnings

  	
   

  	
  (4,303.9

  	
  )

  	
  (4,473.0

  	
  )

  	
  (9,509.9

  	
  )

  	
  (9,397.2

  	
  )

  	
  23,474.2

  	
   

  	
  (2,979.1

  	
  )

  
	
  Total equity

  	
   

  	
  (4,303.9

  	
  )

  	
  (3,985.0

  	
  )

  	
  (9,021.9

  	
  )

  	
  (8,909.2

  	
  )

  	
  23,962.2

  	
   

  	
  29,700.9

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total liabilities
  and equity

  	
   

  	
  17,705.2

  	
   

  	
  23,459.9

  	
   

  	
  20,007.4

  	
   

  	
  19,576.3

  	
   

  	
  38,186.0

  	
   

  	
  43,895.3

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Additional
  data:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net working
  capital

  	
   

  	
  (1,868.4

  	
  )

  	
  (11,625.7

  	
  )

  	
  (16,448.5

  	
  )

  	
  (14,009.1

  	
  )

  	
  752.9

  	
   

  	
  2,950.8

  	
   

  
	
  Working
  capital excluding cash and debt

  	
   

  	
  (4,778.2

  	
  )

  	
  (1,843.5

  	
  )

  	
  (7,103.8

  	
  )

  	
  (4,523.1

  	
  )

  	
  (423.6

  	
  )

  	
  3,660.6

  	
   

  
	
  Total
  interest bearing debt

  	
   

  	
  13,576.1

  	
   

  	
  19,669.3

  	
   

  	
  17,783.6

  	
   

  	
  20,929.0

  	
   

  	
  8,586.9

  	
   

  	
  13,290.8

  	
   

  
	
  Total
  invested capital

  	
   

  	
  9,272.1

  	
   

  	
  15,684.3

  	
   

  	
  8,761.7

  	
   

  	
  12,019.8

  	
   

  	
  32,549.1

  	
   

  	
  42,991.7

  	
   

  

 

Sources and Notes:

Financial statements audited by Johnson & Sheldon, P.C.

Differences due to rounding.

 

 

Apollo
LNG, Inc.

Common Size
Comparative Summary Balance Sheet

 

	
   

  	
   

  	
  Fiscal
  years ended

  	
   

  	
  As of

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  September
  30,

  	
   

  	
  Jun. 30,

  	
   

  	
  Average

  	
   

  
	
   

  	
   

  	
  2001

  	
   

  	
  2002

  	
   

  	
  2003

  	
   

  	
  2004

  	
   

  	
  2005

  	
   

  	
  2006

  	
   

  	
  2003-2005

  	
   

  	
  2001-2005

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ASSETS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Current assets:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cash and
  equivalents

  	
   

  	
  0.0

  	
  %

  	
  0.1

  	
  %

  	
  1.2

  	
  %

  	
  0.4

  	
  %

  	
  10.6

  	
  %

  	
  0.1

  	
  %

  	
  4.0

  	
  %

  	
  2.4

  	
  %

  
	
  Accounts
  receivable

  	
   

  	
  12.3

  	
  %

  	
  13.5

  	
  %

  	
  14.5

  	
  %

  	
  13.6

  	
  %

  	
  7.6

  	
  %

  	
  6.3

  	
  %

  	
  11.9

  	
  %

  	
  12.3

  	
  %

  
	
  Inventory

  	
   

  	
  5.8

  	
  %

  	
  13.5

  	
  %

  	
  14.5

  	
  %

  	
  0.4

  	
  %

  	
  0.1

  	
  %

  	
  1.1

  	
  %

  	
  5.0

  	
  %

  	
  6.9

  	
  %

  
	
  Prepaid expenses

  	
   

  	
  0.0

  	
  %

  	
  0.4

  	
  %

  	
  0.6

  	
  %

  	
  0.4

  	
  %

  	
  0.3

  	
  %

  	
  3.5

  	
  %

  	
  0.4

  	
  %

  	
  0.3

  	
  %

  
	
  Accounts
  receivable, related parties

  	
   

  	
  0.4

  	
  %

  	
  2.7

  	
  %

  	
  1.8

  	
  %

  	
  0.8

  	
  %

  	
  0.7

  	
  %

  	
  (0.5

  	
  )%

  	
  1.1

  	
  %

  	
  1.3

  	
  %

  
	
  Recovery claims
  for vendor cover costs

  	
   

  	
  0.0

  	
  %

  	
  6.2

  	
  %

  	
  2.6

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.9

  	
  %

  	
  1.8

  	
  %

  
	
  Other receivables

  	
   

  	
  0.2

  	
  %

  	
  2.1

  	
  %

  	
  0.7

  	
  %

  	
  0.0

  	
  %

  	
  0.1

  	
  %

  	
  0.0

  	
  %

  	
  0.3

  	
  %

  	
  0.6

  	
  %

  
	
  Other
  receivables, related parties

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.1

  	
  %

  	
  0.3

  	
  %

  	
  0.4

  	
  %

  	
  0.0

  	
  %

  	
  0.3

  	
  %

  	
  0.2

  	
  %

  
	
  Notes receivable

  	
   

  	
  2.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  4.5

  	
  %

  	
  0.1

  	
  %

  	
  1.5

  	
  %

  	
  1.3

  	
  %

  
	
  Total current assets

  	
   

  	
  50.0

  	
  %

  	
  25.2

  	
  %

  	
  21.9

  	
  %

  	
  15.9

  	
  %

  	
  24.2

  	
  %

  	
  10.5

  	
  %

  	
  20.6

  	
  %

  	
  27.4

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gross fixed assets

  	
   

  	
  67.1

  	
  %

  	
  70.5

  	
  %

  	
  83.9

  	
  %

  	
  86.1

  	
  %

  	
  65.2

  	
  %

  	
  40.1

  	
  %

  	
  78.4

  	
  %

  	
  74.6

  	
  %

  
	
  Accumulated
  depreciation, amortization and depletion

  	
   

  	
  (18.4

  	
  )%

  	
  (14.2

  	
  )%

  	
  (22.7

  	
  )%

  	
  (29.1

  	
  )%

  	
  (17.5

  	
  )%

  	
  (15.6

  	
  )%

  	
  (23.1

  	
  )%

  	
  (20.4

  	
  )%

  
	
  Net fixed assets

  	
   

  	
  48.6

  	
  %

  	
  56.3

  	
  %

  	
  61.2

  	
  %

  	
  56.9

  	
  %

  	
  47.7

  	
  %

  	
  24.5

  	
  %

  	
  55.3

  	
  %

  	
  54.2

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other assets:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Notes receivable

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.1

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  
	
  Notes receivable,
  related parties

  	
   

  	
  0.0

  	
  %

  	
  2.8

  	
  %

  	
  0.1

  	
  %

  	
  9.0

  	
  %

  	
  24.4

  	
  %

  	
  7.6

  	
  %

  	
  11.1

  	
  %

  	
  7.2

  	
  %

  
	
  Equipment
  inventory

  	
   

  	
  0.0

  	
  %

  	
  3.5

  	
  %

  	
  3.7

  	
  %

  	
  6.4

  	
  %

  	
  1.1

  	
  %

  	
  0.0

  	
  %

  	
  3.7

  	
  %

  	
  2.9

  	
  %

  
	
  Development
  projects in process

  	
   

  	
  0.0

  	
  %

  	
  11.2

  	
  %

  	
  9.7

  	
  %

  	
  8.7

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  6.2

  	
  %

  	
  5.9

  	
  %

  
	
  Deposits -
  utilities and gas supply

  	
   

  	
  0.1

  	
  %

  	
  0.1

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  1.2

  	
  %

  	
  1.0

  	
  %

  	
  0.4

  	
  %

  	
  0.3

  	
  %

  
	
  Deferred tax
  assets, net

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  1.4

  	
  %

  	
  2.3

  	
  %

  	
  1.1

  	
  %

  	
  0.0

  	
  %

  	
  1.6

  	
  %

  	
  1.0

  	
  %

  
	
  Other assets

  	
   

  	
  1.2

  	
  %

  	
  0.9

  	
  %

  	
  0.5

  	
  %

  	
  0.8

  	
  %

  	
  0.2

  	
  %

  	
  56.4

  	
  %

  	
  0.5

  	
  %

  	
  0.7

  	
  %

  
	
  Total other assets

  	
   

  	
  1.3

  	
  %

  	
  18.5

  	
  %

  	
  16.9

  	
  %

  	
  27.2

  	
  %

  	
  28.1

  	
  %

  	
  65.0

  	
  %

  	
  24.1

  	
  %

  	
  18.4

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total assets

  	
   

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LIABILITIES & EQUITY

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Current liabilities:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounts payable

  	
   

  	
  16.2

  	
  %

  	
  17.8

  	
  %

  	
  18.9

  	
  %

  	
  17.2

  	
  %

  	
  9.8

  	
  %

  	
  2.1

  	
  %

  	
  15.3

  	
  %

  	
  16.0

  	
  %

  
	
  Debt in current
  liabilities

  	
   

  	
  12.9

  	
  %

  	
  41.8

  	
  %

  	
  47.9

  	
  %

  	
  48.8

  	
  %

  	
  7.5

  	
  %

  	
  1.7

  	
  %

  	
  34.7

  	
  %

  	
  31.8

  	
  %

  
	
  Accounts payable,
  related parties

  	
   

  	
  28.3

  	
  %

  	
  12.5

  	
  %

  	
  32.5

  	
  %

  	
  14.4

  	
  %

  	
  0.9

  	
  %

  	
  0.0

  	
  %

  	
  15.9

  	
  %

  	
  17.7

  	
  %

  
	
  Accrued expenses
  and other payables

  	
   

  	
  0.4

  	
  %

  	
  0.5

  	
  %

  	
  1.5

  	
  %

  	
  2.3

  	
  %

  	
  2.8

  	
  %

  	
  0.0

  	
  %

  	
  2.2

  	
  %

  	
  1.5

  	
  %

  
	
  Accrued interest,
  related parties

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  1.7

  	
  %

  	
  3.6

  	
  %

  	
  0.8

  	
  %

  	
  0.0

  	
  %

  	
  2.0

  	
  %

  	
  1.2

  	
  %

  
	
  Unearned revenues

  	
   

  	
  0.0

  	
  %

  	
  0.6

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.6

  	
  %

  	
  0.0

  	
  %

  	
  0.2

  	
  %

  	
  0.3

  	
  %

  
	
  Unearned grant
  revenues

  	
   

  	
  0.0

  	
  %

  	
  1.5

  	
  %

  	
  1.3

  	
  %

  	
  1.1

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.8

  	
  %

  	
  0.8

  	
  %

  
	
  Bank overdraft

  	
   

  	
  2.8

  	
  %

  	
  0.1

  	
  %

  	
  0.2

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.1

  	
  %

  	
  0.6

  	
  %

  
	
  Total current liabilities

  	
   

  	
  60.6

  	
  %

  	
  74.8

  	
  %

  	
  104.1

  	
  %

  	
  87.4

  	
  %

  	
  22.2

  	
  %

  	
  3.8

  	
  %

  	
  71.2

  	
  %

  	
  69.8

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other liabilities:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Long-term debt

  	
   

  	
  63.7

  	
  %

  	
  42.0

  	
  %

  	
  41.0

  	
  %

  	
  58.1

  	
  %

  	
  15.0

  	
  %

  	
  28.5

  	
  %

  	
  38.0

  	
  %

  	
  44.0

  	
  %

  
	
  Deferred tax
  liability

  	
   

  	
  0.0

  	
  %

  	
  0.2

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  
	
  Total other liabilities

  	
   

  	
  63.7

  	
  %

  	
  42.2

  	
  %

  	
  41.0

  	
  %

  	
  58.1

  	
  %

  	
  15.0

  	
  %

  	
  28.5

  	
  %

  	
  38.0

  	
  %

  	
  44.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total liabilities

  	
   

  	
  124.3

  	
  %

  	
  117.0

  	
  %

  	
  145.1

  	
  %

  	
  145.5

  	
  %

  	
  37.2

  	
  %

  	
  32.3

  	
  %

  	
  109.3

  	
  %

  	
  113.8

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Minority interest

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  (0.0

  	
  )%

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Equity:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Capital stock

  	
   

  	
  0.0

  	
  %

  	
  2.1

  	
  %

  	
  2.4

  	
  %

  	
  2.5

  	
  %

  	
  1.3

  	
  %

  	
  0.0

  	
  %

  	
  2.1

  	
  %

  	
  1.7

  	
  %

  
	
  Preferred stock -
  Series A

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  28.5

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  
	
  Preferred stock -
  Series B

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  28.5

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  
	
  Paid-in capital

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  17.5

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  
	
  Retained earnings

  	
   

  	
  (24.3

  	
  )%

  	
  (19.1

  	
  )%

  	
  (47.5

  	
  )%

  	
  (48.0

  	
  )%

  	
  61.5

  	
  %

  	
  (6.8

  	
  )%

  	
  (11.4

  	
  )%

  	
  (15.5

  	
  )%

  
	
  Total equity

  	
   

  	
  (24.3

  	
  )%

  	
  (17.0

  	
  )%

  	
  (45.1

  	
  )%

  	
  (45.5

  	
  )%

  	
  62.8

  	
  %

  	
  67.7

  	
  %

  	
  (9.3

  	
  )%

  	
  (13.8

  	
  )%

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total liabilities and equity

  	
   

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Additional data:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net working capital

  	
   

  	
  (10.6

  	
  )%

  	
  (49.6

  	
  )%

  	
  (82.2

  	
  )%

  	
  (71.6

  	
  )%

  	
  2.0

  	
  %

  	
  6.7

  	
  %

  	
  (50.6

  	
  )%

  	
  (42.4

  	
  )%

  
	
  Working capital excluding cash and debt

  	
   

  	
  (27.0

  	
  )%

  	
  (7.9

  	
  )%

  	
  (35.5

  	
  )%

  	
  (23.1

  	
  )%

  	
  (1.1

  	
  )%

  	
  8.3

  	
  %

  	
  (19.9

  	
  )%

  	
  (18.9

  	
  )%

  
	
  Total interest bearing debt

  	
   

  	
  76.7

  	
  %

  	
  83.8

  	
  %

  	
  88.9

  	
  %

  	
  106.9

  	
  %

  	
  22.5

  	
  %

  	
  30.3

  	
  %

  	
  72.8

  	
  %

  	
  75.8

  	
  %

  
	
  Total invested capital

  	
   

  	
  52.4

  	
  %

  	
  66.9

  	
  %

  	
  43.8

  	
  %

  	
  61.4

  	
  %

  	
  85.2

  	
  %

  	
  97.9

  	
  %

  	
  63.5

  	
  %

  	
  61.9

  	
  %

  

 

 

Apollo LNG, Inc.

Comparative Summary Balance Sheet Growth

 

	
   

  	
   

  	
  Fiscal
  years ended

  	
   

  	
  As of

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  September
  30,

  	
   

  	
  Jun. 30,

  	
   

  	
  CAAGR

  	
   

  
	
   

  	
   

  	
  2002

  	
   

  	
  2003

  	
   

  	
  2004

  	
   

  	
  2005

  	
   

  	
  2006

  	
   

  	
  2003-2005

  	
   

  	
  2001-2005

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ASSETS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Current assets:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cash and
  equivalents

  	
   

  	
  NMF

  	
   

  	
  761.1

  	
  %

  	
  (70.8

  	
  )%

  	
  5702.9

  	
  %

  	
  (98.7

  	
  )%

  	
  311.7

  	
  %

  	
  NMF

  	
   

  
	
  Accounts
  receivable

  	
   

  	
  46.2

  	
  %

  	
  (8.7

  	
  )%

  	
  (7.8

  	
  )%

  	
  8.8

  	
  %

  	
  (5.3

  	
  )%

  	
  0.2

  	
  %

  	
  7.6

  	
  %

  
	
  Inventory

  	
   

  	
  208.0

  	
  %

  	
  (8.7

  	
  )%

  	
  (97.3

  	
  )%

  	
  (37.0

  	
  )%

  	
  865.1

  	
  %

  	
  (87.1

  	
  )%

  	
  (53.4

  	
  )%

  
	
  Prepaid expenses

  	
   

  	
  NMF

  	
   

  	
  26.1

  	
  %

  	
  (34.2

  	
  )%

  	
  36.4

  	
  %

  	
  1411.4

  	
  %

  	
  (5.3

  	
  )%

  	
  NMF

  	
   

  
	
  Accounts
  receivable, related parties

  	
   

  	
  839.3

  	
  %

  	
  (43.9

  	
  )%

  	
  (56.9

  	
  )%

  	
  60.9

  	
  %

  	
  (183.9

  	
  )%

  	
  (16.7

  	
  )%

  	
  38.3

  	
  %

  
	
  Recovery claims
  for vendor cover costs

  	
   

  	
  NMF

  	
   

  	
  (63.9

  	
  )%

  	
  (100.0

  	
  )%

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
  Other receivables

  	
   

  	
  1520.0

  	
  %

  	
  (71.2

  	
  )%

  	
  (100.0

  	
  )%

  	
  NMF

  	
   

  	
  (96.8

  	
  )%

  	
  (53.7

  	
  )%

  	
  0.0

  	
  %

  
	
  Other
  receivables, related parties

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  165.0

  	
  %

  	
  166.7

  	
  %

  	
  (100.0

  	
  )%

  	
  165.8

  	
  %

  	
  NMF

  	
   

  
	
  Notes receivable

  	
   

  	
  (100.0

  	
  )%

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  (98.5

  	
  )%

  	
  NMF

  	
   

  	
  48.2

  	
  %

  
	
  Total current assets

  	
   

  	
  (33.1

  	
  )%

  	
  (26.2

  	
  )%

  	
  (28.9

  	
  )%

  	
  197.5

  	
  %

  	
  (50.1

  	
  )%

  	
  45.4

  	
  %

  	
  1.1

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gross fixed assets

  	
   

  	
  39.3

  	
  %

  	
  1.5

  	
  %

  	
  0.4

  	
  %

  	
  47.8

  	
  %

  	
  (29.4

  	
  )%

  	
  21.8

  	
  %

  	
  20.3

  	
  %

  
	
  Accumulated
  depreciation, amortization and depletion

  	
   

  	
  2.0

  	
  %

  	
  36.3

  	
  %

  	
  25.7

  	
  %

  	
  17.2

  	
  %

  	
  2.6

  	
  %

  	
  NMF

  	
   

  	
  19.6

  	
  %

  
	
  Net fixed assets

  	
   

  	
  53.4

  	
  %

  	
  (7.3

  	
  )%

  	
  (9.0

  	
  )%

  	
  63.5

  	
  %

  	
  (50.6

  	
  )%

  	
  22.0

  	
  %

  	
  20.6

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other assets:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Notes receivable

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  (100.0

  	
  )%

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
  Notes receivable,
  related parties

  	
   

  	
  NMF

  	
   

  	
  (54.3

  	
  )%

  	
  481.1

  	
  %

  	
  429.9

  	
  %

  	
  (64.3

  	
  )%

  	
  1978.1

  	
  %

  	
  NMF

  	
   

  
	
  Equipment
  inventory

  	
   

  	
  NMF

  	
   

  	
  (9.8

  	
  )%

  	
  70.3

  	
  %

  	
  (65.1

  	
  )%

  	
  (100.0

  	
  )%

  	
  (22.9

  	
  )%

  	
  NMF

  	
   

  
	
  Development
  projects in process

  	
   

  	
  NMF

  	
   

  	
  (25.9

  	
  )%

  	
  (12.4

  	
  )%

  	
  (100.0

  	
  )%

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
  Deposits - utilities
  and gas supply

  	
   

  	
  31.2

  	
  %

  	
  (95.1

  	
  )%

  	
  0.0

  	
  %

  	
  44117.6

  	
  %

  	
  0.0

  	
  %

  	
  2002.8

  	
  %

  	
  130.3

  	
  %

  
	
  Deferred tax
  assets, net

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  68.0

  	
  %

  	
  (4.7

  	
  )%

  	
  (100.0

  	
  )%

  	
  26.6

  	
  %

  	
  NMF

  	
   

  
	
  Other assets

  	
   

  	
  (7.7

  	
  )%

  	
  (47.2

  	
  )%

  	
  39.7

  	
  %

  	
  (38.3

  	
  )%

  	
  26773.7

  	
  %

  	
  (7.2

  	
  )%

  	
  (19.5

  	
  )%

  
	
  Total other assets

  	
   

  	
  1739.0

  	
  %

  	
  (21.7

  	
  )%

  	
  57.1

  	
  %

  	
  101.4

  	
  %

  	
  166.4

  	
  %

  	
  77.8

  	
  %

  	
  159.7

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total assets

  	
   

  	
  32.5

  	
  %

  	
  (14.7

  	
  )%

  	
  (2.2

  	
  )%

  	
  95.1

  	
  %

  	
  15.0

  	
  %

  	
  38.2

  	
  %

  	
  21.2

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LIABILITIES & EQUITY

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Current liabilities:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounts payable

  	
   

  	
  45.5

  	
  %

  	
  (9.0

  	
  )%

  	
  (11.4

  	
  )%

  	
  11.2

  	
  %

  	
  (75.8

  	
  )%

  	
  (0.7

  	
  )%

  	
  6.9

  	
  %

  
	
  Debt in current
  liabilities

  	
   

  	
  327.9

  	
  %

  	
  (2.3

  	
  )%

  	
  (0.3

  	
  )%

  	
  (70.1

  	
  )%

  	
  (73.3

  	
  )%

  	
  (45.4

  	
  )%

  	
  5.6

  	
  %

  
	
  Accounts payable,
  related parties

  	
   

  	
  (41.2

  	
  )%

  	
  120.9

  	
  %

  	
  (56.7

  	
  )%

  	
  (88.3

  	
  )%

  	
  (100.0

  	
  )%

  	
  (77.5

  	
  )%

  	
  (49.3

  	
  )%

  
	
  Accrued expenses
  and other payables

  	
   

  	
  44.9

  	
  %

  	
  166.2

  	
  %

  	
  53.3

  	
  %

  	
  136.7

  	
  %

  	
  (100.0

  	
  )%

  	
  90.5

  	
  %

  	
  93.4

  	
  %

  
	
  Accrued interest,
  related parties

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  108.7

  	
  %

  	
  (59.1

  	
  )%

  	
  (100.0

  	
  )%

  	
  (7.6

  	
  )%

  	
  NMF

  	
   

  
	
  Unearned revenues

  	
   

  	
  NMF

  	
   

  	
  (96.6

  	
  )%

  	
  0.0

  	
  %

  	
  4421.9

  	
  %

  	
  (100.0

  	
  )%

  	
  572.4

  	
  %

  	
  NMF

  	
   

  
	
  Unearned grant
  revenues

  	
   

  	
  NMF

  	
   

  	
  (25.4

  	
  )%

  	
  (15.4

  	
  )%

  	
  (100.0

  	
  )%

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
  Bank overdraft

  	
   

  	
  (96.1

  	
  )%

  	
  143.0

  	
  %

  	
  (100.0

  	
  )%

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  (100.0

  	
  )%

  
	
  Total current liabilities

  	
   

  	
  63.6

  	
  %

  	
  18.7

  	
  %

  	
  (17.8

  	
  )%

  	
  (50.4

  	
  )%

  	
  (80.4

  	
  )%

  	
  (36.1

  	
  )%

  	
  (5.7

  	
  )%

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other liabilities:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Long-term debt

  	
   

  	
  (12.6

  	
  )%

  	
  (16.8

  	
  )%

  	
  38.7

  	
  %

  	
  (49.6

  	
  )%

  	
  118.6

  	
  %

  	
  (16.4

  	
  )%

  	
  (15.6

  	
  )%

  
	
  Deferred tax
  liability

  	
   

  	
  NMF

  	
   

  	
  (100.0

  	
  )%

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
  Total other liabilities

  	
   

  	
  (12.3

  	
  )%

  	
  (17.1

  	
  )%

  	
  38.7

  	
  %

  	
  (49.6

  	
  )%

  	
  118.6

  	
  %

  	
  (16.4

  	
  )%

  	
  (15.6

  	
  )%

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total liabilities

  	
   

  	
  24.7

  	
  %

  	
  5.7

  	
  %

  	
  (1.8

  	
  )%

  	
  (50.1

  	
  )%

  	
  (0.2

  	
  )%

  	
  (30.0

  	
  )%

  	
  (10.3

  	
  )%

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Minority interest

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  (171.4

  	
  )%

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Equity:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Capital stock

  	
   

  	
  NMF

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  (100.0

  	
  )%

  	
  0.0

  	
  %

  	
  NMF

  	
   

  
	
  Preferred stock -
  Series A

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
  Preferred stock -
  Series B

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
  Paid-in capital

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
  Retained earnings

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
  Total equity

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  23.9

  	
  %

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total liabilities and equity

  	
   

  	
  32.5

  	
  %

  	
  (14.7

  	
  )%

  	
  (2.2

  	
  )%

  	
  95.1

  	
  %

  	
  15.0

  	
  %

  	
  38.2

  	
  %

  	
  21.2

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Additional data:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net working capital

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  291.9

  	
  %

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
  Working capital excluding cash and debt

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
  Total interest bearing debt

  	
   

  	
  44.9

  	
  %

  	
  (9.6

  	
  )%

  	
  17.7

  	
  %

  	
  (59.0

  	
  )%

  	
  54.8

  	
  %

  	
  (30.5

  	
  )%

  	
  (10.8

  	
  )%

  
	
  Total invested capital

  	
   

  	
  69.2

  	
  %

  	
  (44.1

  	
  )%

  	
  37.2

  	
  %

  	
  170.8

  	
  %

  	
  32.1

  	
  %

  	
  92.7

  	
  %

  	
  36.9

  	
  %

  

 

 

Apollo LNG, Inc.

Comparative Summary Income Statement

 

	
   

  	
   

  	
  Fiscal years ended

  	
   

  
	
   

  	
   

  	
  September 30,

  	
   

  
	
  (in thousands of $ unless
  otherwise noted)

  	
   

  	
  2001

  	
   

  	
  2002

  	
   

  	
  2003

  	
   

  	
  2004

  	
   

  	
  2005

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total
  revenue, net

  	
   

  	
  14,671.6

  	
   

  	
  21,397.5

  	
   

  	
  28,202.4

  	
   

  	
  26,055.3

  	
   

  	
  30,522.7

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total cost
  of goods sold

  	
   

  	
  11,884.8

  	
   

  	
  16,122.0

  	
   

  	
  26,019.9

  	
   

  	
  21,546.1

  	
   

  	
  25,042.9

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gross profit

  	
   

  	
  2,786.8

  	
   

  	
  5,275.5

  	
   

  	
  2,182.5

  	
   

  	
  4,509.3

  	
   

  	
  5,479.8

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Operating
  expenses:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Marketing, selling and administrative
  expenses

  	
   

  	
  5,003.7

  	
   

  	
  3,001.5

  	
   

  	
  3,104.9

  	
   

  	
  2,879.2

  	
   

  	
  2,724.5

  	
   

  
	
  Other operating income (expense)

  	
   

  	
  0.0

  	
   

  	
  1,790.9

  	
   

  	
  919.9

  	
   

  	
  458.6

  	
   

  	
  1,709.2

  	
   

  
	
  Total
  operating expenses

  	
   

  	
  5,003.7

  	
   

  	
  4,792.4

  	
   

  	
  4,024.8

  	
   

  	
  3,337.8

  	
   

  	
  4,433.7

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Operating
  income

  	
   

  	
  (2,216.9

  	
  )

  	
  483.0

  	
   

  	
  (1,842.3

  	
  )

  	
  1,171.5

  	
   

  	
  1,046.1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other income
  (expense)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Interest expense

  	
   

  	
  (921.1

  	
  )

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  (1,148.2

  	
  )

  	
  (799.3

  	
  )

  
	
  Gain on LNG contract settlement

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  33,000.0

  	
   

  
	
  Other income

  	
   

  	
  57.8

  	
   

  	
  (3,089.7

  	
  )

  	
  (3,409.4

  	
  )

  	
  (97.7

  	
  )

  	
  (354.2

  	
  )

  
	
  Total other
  income (expense)

  	
   

  	
  (863.3

  	
  )

  	
  (3,089.7

  	
  )

  	
  (3,409.4

  	
  )

  	
  (1,245.9

  	
  )

  	
  31,846.5

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pretax
  income

  	
   

  	
  (3,080.2

  	
  )

  	
  (2,606.6

  	
  )

  	
  (5,251.7

  	
  )

  	
  (74.4

  	
  )

  	
  32,892.5

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Income tax
  expense

  	
   

  	
  0.0

  	
   

  	
  (447.8

  	
  )

  	
  (214.8

  	
  )

  	
  (187.2

  	
  )

  	
  21.2

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net income

  	
   

  	
  (3,080.2

  	
  )

  	
  (2,158.8

  	
  )

  	
  (5,036.9

  	
  )

  	
  112.7

  	
   

  	
  32,871.4

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Additional
  data:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Depreciation
  and amortization

  	
   

  	
  1,051.7

  	
   

  	
  981.7

  	
   

  	
  1,042.8

  	
   

  	
  1,075.9

  	
   

  	
  1,044.1

  	
   

  
	
  Capital
  expenditures

  	
   

  	
  1,401.4

  	
   

  	
  1,326.9

  	
   

  	
  288.3

  	
   

  	
  39.9

  	
   

  	
  20.6

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EBITDA

  	
   

  	
  (1,107.4

  	
  )

  	
  (1,624.9

  	
  )

  	
  (4,208.9

  	
  )

  	
  2,149.7

  	
   

  	
  34,736.0

  	
   

  
	
  EBIT

  	
   

  	
  (2,159.1

  	
  )

  	
  (2,606.6

  	
  )

  	
  (5,251.7

  	
  )

  	
  1,073.8

  	
   

  	
  33,691.9

  	
   

  

 

Sources
and Notes:

Financial
statements audited by Johnson & Sheldon, P.C.

LTM
= Latest 12 months.

 

 

Apollo LNG, Inc.

Common Size Comparative Summary Income Statement

 

	
   

  	
   

  	
  Fiscal years ended

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  September 30,

  	
   

  	
  Average

  	
   

  
	
   

  	
   

  	
  2001

  	
   

  	
  2002

  	
   

  	
  2003

  	
   

  	
  2004

  	
   

  	
  2005

  	
   

  	
  2003-2005

  	
   

  	
  2001-2005

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total revenue, net

  	
   

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total cost of goods sold

  	
   

  	
  81.0

  	
  %

  	
  75.3

  	
  %

  	
  92.3

  	
  %

  	
  82.7

  	
  %

  	
  82.0

  	
  %

  	
  85.7

  	
  %

  	
  82.7

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gross profit

  	
   

  	
  19.0

  	
  %

  	
  24.7

  	
  %

  	
  7.7

  	
  %

  	
  17.3

  	
  %

  	
  18.0

  	
  %

  	
  14.3

  	
  %

  	
  17.3

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Operating expenses:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Marketing,
  selling and administrative expenses

  	
   

  	
  34.1

  	
  %

  	
  14.0

  	
  %

  	
  11.0

  	
  %

  	
  11.1

  	
  %

  	
  8.9

  	
  %

  	
  10.3

  	
  %

  	
  15.8

  	
  %

  
	
  Other operating
  income (expense)

  	
   

  	
  0.0

  	
  %

  	
  8.4

  	
  %

  	
  3.3

  	
  %

  	
  1.8

  	
  %

  	
  5.6

  	
  %

  	
  3.5

  	
  %

  	
  3.8

  	
  %

  
	
  Total operating expenses

  	
   

  	
  34.1

  	
  %

  	
  22.4

  	
  %

  	
  14.3

  	
  %

  	
  12.8

  	
  %

  	
  14.5

  	
  %

  	
  13.9

  	
  %

  	
  19.6

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Operating income

  	
   

  	
  (15.1

  	
  )%

  	
  2.3

  	
  %

  	
  (6.5

  	
  )%

  	
  4.5

  	
  %

  	
  3.4

  	
  %

  	
  0.5

  	
  %

  	
  (2.3

  	
  )%

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other income (expense)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Interest expense

  	
   

  	
  (6.3

  	
  )%

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  (4.4

  	
  )%

  	
  (2.6

  	
  )%

  	
  (2.3

  	
  )%

  	
  (2.7

  	
  )%

  
	
  Gain on LNG
  contract settlement

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  108.1

  	
  %

  	
  36.0

  	
  %

  	
  21.6

  	
  %

  
	
  Other income

  	
   

  	
  0.4

  	
  %

  	
  (14.4

  	
  )%

  	
  (12.1

  	
  )%

  	
  (0.4

  	
  )%

  	
  (1.2

  	
  )%

  	
  (4.5

  	
  )%

  	
  (5.5

  	
  )%

  
	
  Total other income (expense)

  	
   

  	
  (5.9

  	
  )%

  	
  (14.4

  	
  )%

  	
  (12.1

  	
  )%

  	
  (4.8

  	
  )%

  	
  104.3

  	
  %

  	
  29.2

  	
  %

  	
  13.4

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pretax income

  	
   

  	
  (21.0

  	
  )%

  	
  (12.2

  	
  )%

  	
  (18.6

  	
  )%

  	
  (0.3

  	
  )%

  	
  107.8

  	
  %

  	
  29.6

  	
  %

  	
  11.1

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Income tax expense

  	
   

  	
  0.0

  	
  %

  	
  (2.1

  	
  )%

  	
  (0.8

  	
  )%

  	
  (0.7

  	
  )%

  	
  0.1

  	
  %

  	
  (0.5

  	
  )%

  	
  (0.7

  	
  )%

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net income

  	
   

  	
  (21.0

  	
  )%

  	
  (10.1

  	
  )%

  	
  (17.9

  	
  )%

  	
  0.4

  	
  %

  	
  107.7

  	
  %

  	
  30.1

  	
  %

  	
  11.8

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Additional data:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Depreciation and amortization

  	
   

  	
  7.2

  	
  %

  	
  4.6

  	
  %

  	
  3.7

  	
  %

  	
  4.1

  	
  %

  	
  3.4

  	
  %

  	
  3.7

  	
  %

  	
  4.6

  	
  %

  
	
  Capital expenditures

  	
   

  	
  9.6

  	
  %

  	
  6.2

  	
  %

  	
  1.0

  	
  %

  	
  0.2

  	
  %

  	
  0.1

  	
  %

  	
  0.4

  	
  %

  	
  3.4

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EBITDA

  	
   

  	
  (7.5

  	
  )%

  	
  (7.6

  	
  )%

  	
  (14.9

  	
  )%

  	
  8.3

  	
  %

  	
  113.8

  	
  %

  	
  35.7

  	
  %

  	
  18.4

  	
  %

  
	
  EBIT

  	
   

  	
  (14.7

  	
  )%

  	
  (12.2

  	
  )%

  	
  (18.6

  	
  )%

  	
  4.1

  	
  %

  	
  110.4

  	
  %

  	
  32.0

  	
  %

  	
  13.8

  	
  %

  

 

 

Apollo LNG, Inc.

Comparative Summary Income Statement Growth

 

	
   

  	
   

  	
  Fiscal years ended

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  September 30,

  	
   

  	
  CAAGR

  	
   

  
	
   

  	
   

  	
  2002

  	
   

  	
  2003

  	
   

  	
  2004

  	
   

  	
  2005

  	
   

  	
  2003-2005

  	
   

  	
  2001-2005

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total revenue, net

  	
   

  	
  45.8

  	
  %

  	
  31.8

  	
  %

  	
  (7.6

  	
  )%

  	
  17.1

  	
  %

  	
  4.0

  	
  %

  	
  20.1

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total cost of goods sold

  	
   

  	
  35.7

  	
  %

  	
  61.4

  	
  %

  	
  (17.2

  	
  )%

  	
  16.2

  	
  %

  	
  (1.9

  	
  )%

  	
  20.5

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gross profit

  	
   

  	
  89.3

  	
  %

  	
  (58.6

  	
  )%

  	
  106.6

  	
  %

  	
  21.5

  	
  %

  	
  58.5

  	
  %

  	
  18.4

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Operating expenses:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Marketing,
  selling and administrative expenses

  	
   

  	
  (40.0

  	
  )%

  	
  3.4

  	
  %

  	
  (7.3

  	
  )%

  	
  (5.4

  	
  )%

  	
  (6.3

  	
  )%

  	
  (14.1

  	
  )%

  
	
  Other operating
  income (expense)

  	
   

  	
  NMF

  	
   

  	
  (48.6

  	
  )%

  	
  (50.1

  	
  )%

  	
  272.7

  	
  %

  	
  36.3

  	
  %

  	
  NMF

  	
   

  
	
  Total operating expenses

  	
   

  	
  (4.2

  	
  )%

  	
  (16.0

  	
  )%

  	
  (17.1

  	
  )%

  	
  32.8

  	
  %

  	
  5.0

  	
  %

  	
  (3.0

  	
  )%

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Operating income

  	
   

  	
  NMF

  	
   

  	
  (481.4

  	
  )%

  	
  NMF

  	
   

  	
  (10.7

  	
  )%

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other income (expense)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Interest expense

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  (30.4

  	
  )%

  	
  NMF

  	
   

  	
  (3.5

  	
  )%

  
	
  Gain on LNG
  contract settlement

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
  Other income

  	
   

  	
  (5446.7

  	
  )%

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
  Total other income (expense)

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pretax income

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Income tax expense

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net income

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  29065.3

  	
  %

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Additional data:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Depreciation and amortization

  	
   

  	
  (6.7

  	
  )%

  	
  6.2

  	
  %

  	
  3.2

  	
  %

  	
  (2.9

  	
  )%

  	
  0.1

  	
  %

  	
  (0.2

  	
  )%

  
	
  Capital expenditures

  	
   

  	
  (5.3

  	
  )%

  	
  (78.3

  	
  )%

  	
  (86.2

  	
  )%

  	
  (48.5

  	
  )%

  	
  (73.3

  	
  )%

  	
  (65.2

  	
  )%

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EBITDA

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  1515.9

  	
  %

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
  EBIT

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  3037.6

  	
  %

  	
  NMF

  	
   

  	
  NMF

  	
   

  

 

 

Apollo LNG, Inc.

Ratio Analysis

 

	
   

  	
   

  	
  Fiscal years ended

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Guideline

  	
   

  
	
   

  	
   

  	
  September 30,

  	
   

  	
  Average (1)

  	
   

  	
  Company

  	
   

  
	
   

  	
   

  	
  2001

  	
   

  	
  2002

  	
   

  	
  2003

  	
   

  	
  2004

  	
   

  	
  2005

  	
   

  	
  2003-2005

  	
   

  	
  2001-2005

  	
   

  	
  Average

  	
   

  
	
  Liquidity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Current
  ratio

  	
   

  	
  0.8

  	
   

  	
  0.3

  	
   

  	
  0.2

  	
   

  	
  0.2

  	
   

  	
  1.1

  	
   

  	
  0.5

  	
   

  	
  0.5

  	
   

  	
  7.0

  	
   

  
	
  Quick ratio

  	
   

  	
  0.7

  	
   

  	
  0.2

  	
   

  	
  0.2

  	
   

  	
  0.2

  	
   

  	
  0.8

  	
   

  	
  0.4

  	
   

  	
  0.4

  	
   

  	
  6.6

  	
   

  
	
  Net working
  capital turnover

  	
   

  	
  -7.9

  	
  x

  	
  -1.8

  	
  x

  	
  -1.7

  	
  x

  	
  -1.9

  	
  x

  	
  40.5

  	
  x

  	
  12.3

  	
  x

  	
  5.5

  	
  x

  	
  1.2

  	
  x

  
	
  Net working
  capital-to-revenue

  	
   

  	
  (12.7

  	
  )%

  	
  (54.3

  	
  )%

  	
  (58.3

  	
  )%

  	
  (53.8

  	
  )%

  	
  2.5

  	
  %

  	
  (36.5

  	
  )%

  	
  (35.3

  	
  )%

  	
  31.7

  	
  %

  
	
  Working capital-to-revenue excluding cash
  and debt

  	
   

  	
  (32.6

  	
  )%

  	
  (8.6

  	
  )%

  	
  (25.2

  	
  )%

  	
  (17.4

  	
  )%

  	
  (1.4

  	
  )%

  	
  (14.6

  	
  )%

  	
  (17.0

  	
  )%

  	
  (57.7

  	
  )%

  
	
  Cash-to-revenue

  	
   

  	
  0.0

  	
  %

  	
  0.1

  	
  %

  	
  0.8

  	
  %

  	
  0.3

  	
  %

  	
  13.2

  	
  %

  	
  4.8

  	
  %

  	
  2.9

  	
  %

  	
  90.3

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Asset mix

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cash-to-total
  assets

  	
   

  	
  0.0

  	
  %

  	
  0.1

  	
  %

  	
  1.2

  	
  %

  	
  0.4

  	
  %

  	
  10.6

  	
  %

  	
  4.0

  	
  %

  	
  2.4

  	
  %

  	
  29.0

  	
  %

  
	
  Accounts receivable-to-total assets

  	
   

  	
  12.3

  	
  %

  	
  13.5

  	
  %

  	
  14.5

  	
  %

  	
  13.6

  	
  %

  	
  7.6

  	
  %

  	
  11.9

  	
  %

  	
  12.3

  	
  %

  	
  6.7

  	
  %

  
	
  Inventory-to-total
  assets

  	
   

  	
  5.8

  	
  %

  	
  13.5

  	
  %

  	
  14.5

  	
  %

  	
  0.4

  	
  %

  	
  0.1

  	
  %

  	
  5.0

  	
  %

  	
  6.9

  	
  %

  	
  4.8

  	
  %

  
	
  Net fixed
  assets-to-total assets

  	
   

  	
  48.6

  	
  %

  	
  56.3

  	
  %

  	
  61.2

  	
  %

  	
  56.9

  	
  %

  	
  47.7

  	
  %

  	
  55.3

  	
  %

  	
  54.2

  	
  %

  	
  23.1

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Activity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Inventory
  turnover

  	
   

  	
  11.5

  	
  x

  	
  5.1

  	
  x

  	
  9.0

  	
  x

  	
  280.0

  	
  x

  	
  516.2

  	
  x

  	
  268.4

  	
  x

  	
  164.4

  	
  x

  	
  27.0

  	
  x

  
	
  Inventory
  days

  	
   

  	
  31.6

  	
   

  	
  71.9

  	
   

  	
  40.6

  	
   

  	
  1.3

  	
   

  	
  0.7

  	
   

  	
  14.2

  	
   

  	
  29.2

  	
   

  	
  55.2

  	
   

  
	
  Accounts
  receivable turnover

  	
   

  	
  6.8

  	
  x

  	
  6.7

  	
  x

  	
  9.7

  	
  x

  	
  9.8

  	
  x

  	
  10.5

  	
  x

  	
  10.0

  	
  x

  	
  8.7

  	
  x

  	
  8.5

  	
  x

  
	
  Accounts
  receivable days

  	
   

  	
  54.0

  	
   

  	
  54.1

  	
   

  	
  37.5

  	
   

  	
  37.4

  	
   

  	
  34.8

  	
   

  	
  36.6

  	
   

  	
  43.6

  	
   

  	
  63.2

  	
   

  
	
  Accounts
  payable turnover

  	
   

  	
  4.2

  	
  x

  	
  3.9

  	
  x

  	
  6.9

  	
  x

  	
  6.4

  	
  x

  	
  6.7

  	
  x

  	
  6.7

  	
  x

  	
  5.6

  	
  x

  	
  9.9

  	
  x

  
	
  Accounts
  payable days

  	
   

  	
  87.9

  	
   

  	
  94.3

  	
   

  	
  53.1

  	
   

  	
  56.9

  	
   

  	
  54.4

  	
   

  	
  54.8

  	
   

  	
  69.3

  	
   

  	
  60.1

  	
   

  
	
  Net trade
  cycle

  	
   

  	
  (2.2

  	
  )

  	
  31.7

  	
   

  	
  25.0

  	
   

  	
  (18.1

  	
  )

  	
  (18.9

  	
  )

  	
  (4.0

  	
  )

  	
  3.5

  	
   

  	
  54.1

  	
   

  
	
  Asset
  turnover

  	
   

  	
  0.8

  	
  x

  	
  0.9

  	
  x

  	
  1.4

  	
  x

  	
  1.3

  	
  x

  	
  0.8

  	
  x

  	
  1.2

  	
  x

  	
  1.1

  	
  x

  	
  0.4

  	
  x

  
	
  Fixed asset
  turnover

  	
   

  	
  1.7

  	
  x 

  	
  1.6

  	
  x

  	
  2.3

  	
  x

  	
  2.3

  	
  x

  	
  1.7

  	
  x

  	
  2.1

  	
  x

  	
  1.9

  	
  x

  	
  3.6

  	
  x

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Leverage

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total
  assets-to-equity

  	
   

  	
  -4.1

  	
  x

  	
  -5.9

  	
  x

  	
  -2.2

  	
  x

  	
  -2.2

  	
  x

  	
  1.6

  	
  x

  	
  -0.9

  	
  x

  	
  -2.6

  	
  x

  	
  -1.6

  	
  x

  
	
  Total
  liabilities-to-equity

  	
   

  	
  -5.1

  	
  x

  	
  -6.9

  	
  x

  	
  -3.2

  	
  x

  	
  -3.2

  	
  x

  	
  0.6

  	
  x

  	
  -1.9

  	
  x

  	
  -3.6

  	
  x

  	
  -2.6

  	
  x

  
	
  Total
  debt-to-equity

  	
   

  	
  -3.2

  	
  x

  	
  -4.9

  	
  x

  	
  -2.0

  	
  x

  	
  -2.3

  	
  x

  	
  0.4

  	
  x

  	
  -1.3

  	
  x

  	
  -2.4

  	
  x

  	
  -0.1

  	
  x

  
	
  Interest
  coverage

  	
   

  	
  -2.3

  	
  x

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  0.9

  	
  x

  	
  42.1

  	
  x

  	
  21.5

  	
  x

  	
  13.6

  	
  x

  	
  -10.4

  	
  x

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Growth

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Revenue

  	
   

  	
   

  	
   

  	
  45.8

  	
  %

  	
  31.8

  	
  %

  	
  (7.6

  	
  )%

  	
  17.1

  	
  %

  	
  4.0

  	
  %

  	
  20.1

  	
  %

  	
   

  	
   

  
	
  EBITDA

  	
   

  	
   

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  1515.9

  	
  %

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
   

  	
   

  
	
  EBIT

  	
   

  	
   

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  3037.6

  	
  %

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
   

  	
   

  
	
  Net income

  	
   

  	
   

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  29065.3

  	
  %

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
   

  	
   

  
	
  Assets

  	
   

  	
   

  	
   

  	
  32.5

  	
  %

  	
  (14.7

  	
  )%

  	
  (2.2

  	
  )%

  	
  95.1

  	
  %

  	
  38.2

  	
  %

  	
  21.2

  	
  %

  	
   

  	
   

  

 

 

	
   

  	
   

  	
  Fiscal years ended

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Guideline

  	
   

  
	
   

  	
   

  	
  September 30,

  	
   

  	
  Average (1)

  	
   

  	
  Company

  	
   

  
	
   

  	
   

  	
  2001

  	
   

  	
  2002

  	
   

  	
  2003

  	
   

  	
  2004

  	
   

  	
  2005

  	
   

  	
  2003-2005

  	
   

  	
  2001-2005

  	
   

  	
  Average

  	
   

  
	
  Profitability

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gross profit margin

  	
   

  	
  19.0

  	
  %

  	
  24.7

  	
  %

  	
  7.7

  	
  %

  	
  17.3

  	
  %

  	
  18.0

  	
  %

  	
  14.3

  	
  %

  	
  17.3

  	
  %

  	
  7.8

  	
  %

  
	
  Operating expenses-to-revenue

  	
   

  	
  34.1

  	
  %

  	
  22.4

  	
  %

  	
  14.3

  	
  %

  	
  12.8

  	
  %

  	
  14.5

  	
  %

  	
  13.9

  	
  %

  	
  19.6

  	
  %

  	
  120.7

  	
  %

  
	
  Operating margin

  	
   

  	
  (15.1

  	
  )%

  	
  2.3

  	
  %

  	
  (6.5

  	
  )%

  	
  4.5

  	
  %

  	
  3.4

  	
  %

  	
  0.5

  	
  %

  	
  (2.3

  	
  )%

  	
  (112.9

  	
  )%

  
	
  EBITDA-to-revenue

  	
   

  	
  (7.5

  	
  )%

  	
  (7.6

  	
  )%

  	
  (14.9

  	
  )%

  	
  8.3

  	
  %

  	
  113.8

  	
  %

  	
  35.7

  	
  %

  	
  18.4

  	
  %

  	
  (46.5

  	
  )%

  
	
  EBIT-to-revenue

  	
   

  	
  (14.7

  	
  )%

  	
  (12.2

  	
  )%

  	
  (18.6

  	
  )%

  	
  4.1

  	
  %

  	
  110.4

  	
  %

  	
  32.0

  	
  %

  	
  13.8

  	
  %

  	
  (53.0

  	
  )%

  
	
  Pretax income-to-revenue

  	
   

  	
  (21.0

  	
  )%

  	
  (12.2

  	
  )%

  	
  (18.6

  	
  )%

  	
  (0.3

  	
  )%

  	
  107.8

  	
  %

  	
  29.6

  	
  %

  	
  11.1

  	
  %

  	
  (136.7

  	
  )%

  
	
  Pretax income-to-equity

  	
   

  	
  71.6

  	
  %

  	
  65.4

  	
  %

  	
  58.2

  	
  %

  	
  0.8

  	
  %

  	
  137.3

  	
  %

  	
  65.4

  	
  %

  	
  66.7

  	
  %

  	
  278.6

  	
  %

  
	
  Pretax income-to-total assets

  	
   

  	
  (17.4

  	
  )%

  	
  (11.1

  	
  )%

  	
  (26.2

  	
  )%

  	
  (0.4

  	
  )%

  	
  86.1

  	
  %

  	
  19.8

  	
  %

  	
  6.2

  	
  %

  	
  (25.2

  	
  )%

  
	
  Net income-to-revenue

  	
   

  	
  (21.0

  	
  )%

  	
  (10.1

  	
  )%

  	
  (17.9

  	
  )%

  	
  0.4

  	
  %

  	
  107.7

  	
  %

  	
  30.1

  	
  %

  	
  11.8

  	
  %

  	
  (138.3

  	
  )%

  
	
  Net income-to-equity

  	
   

  	
  71.6

  	
  %

  	
  54.2

  	
  %

  	
  55.8

  	
  %

  	
  (1.3

  	
  )%

  	
  137.2

  	
  %

  	
  63.9

  	
  %

  	
  63.5

  	
  %

  	
  276.4

  	
  %

  
	
  Net income-to-total assets

  	
   

  	
  (17.4

  	
  )%

  	
  (9.2

  	
  )%

  	
  (25.2

  	
  )%

  	
  0.6

  	
  %

  	
  86.1

  	
  %

  	
  20.5

  	
  %

  	
  7.0

  	
  %

  	
  (26.4

  	
  )%

  
	
  Gross cash flow-to-revenue

  	
   

  	
  (13.8

  	
  )%

  	
  (5.5

  	
  )%

  	
  (14.2

  	
  )%

  	
  4.6

  	
  %

  	
  111.1

  	
  %

  	
  33.8

  	
  %

  	
  16.4

  	
  %

  	
  (131.8

  	
  )%

  
	
  Effective tax rate

  	
   

  	
  0.0

  	
  %

  	
  17.2

  	
  %

  	
  4.1

  	
  %

  	
  251.4

  	
  %

  	
  0.1

  	
  %

  	
  85.2

  	
  %

  	
  54.5

  	
  %

  	
  20.2

  	
  %

  
	
  Dividends-to-net income

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  (0.1

  	
  )%

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Depreciation
  & capital exp.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net income-to-depreciation

  	
   

  	
  (292.9

  	
  )%

  	
  (219.9

  	
  )%

  	
  (483.0

  	
  )%

  	
  10.5

  	
  %

  	
  3148.2

  	
  %

  	
  891.9

  	
  %

  	
  432.6

  	
  %

  	
  #REF!

  	
   

  
	
  Depreciation-to-revenue

  	
   

  	
  7.2

  	
  %

  	
  4.6

  	
  %

  	
  3.7

  	
  %

  	
  4.1

  	
  %

  	
  3.4

  	
  %

  	
  3.7

  	
  %

  	
  4.6

  	
  %

  	
  6.5

  	
  %

  
	
  Capital expenditures-to-revenue

  	
   

  	
  9.6

  	
  %

  	
  6.2

  	
  %

  	
  1.0

  	
  %

  	
  0.2

  	
  %

  	
  0.1

  	
  %

  	
  0.4

  	
  %

  	
  3.4

  	
  %

  	
  17.6

  	
  %

  
	
  Capital expenditures-to-depreciation

  	
   

  	
  133.3

  	
  %

  	
  135.2

  	
  %

  	
  27.6

  	
  %

  	
  3.7

  	
  %

  	
  2.0

  	
  %

  	
  11.1

  	
  %

  	
  60.3

  	
  %

  	
  17403.7

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dupont
  analysis

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net income-to-pretax income

  	
   

  	
  100.0

  	
  %

  	
  82.8

  	
  %

  	
  95.9

  	
  %

  	
  (151.4

  	
  )%

  	
  99.9

  	
  %

  	
  14.8

  	
  %

  	
  45.5

  	
  %

  	
  79.8

  	
  %

  
	
  Pretax income-to-EBIT

  	
   

  	
  142.7

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  (6.9

  	
  )%

  	
  97.6

  	
  %

  	
  63.6

  	
  %

  	
  86.7

  	
  %

  	
  262.0

  	
  %

  
	
  EBIT-to-revenue

  	
   

  	
  (14.7

  	
  )%

  	
  (12.2

  	
  )%

  	
  (18.6

  	
  )%

  	
  4.1

  	
  %

  	
  110.4

  	
  %

  	
  32.0

  	
  %

  	
  13.8

  	
  %

  	
  (53.0

  	
  )%

  
	
  Revenue-to-total assets

  	
   

  	
  82.9

  	
  %

  	
  91.2

  	
  %

  	
  141.0

  	
  %

  	
  133.1

  	
  %

  	
  79.9

  	
  %

  	
  118.0

  	
  %

  	
  105.6

  	
  %

  	
  37.6

  	
  %

  
	
  Total assets-to-equity

  	
   

  	
  (411.4

  	
  )%

  	
  (588.7

  	
  )%

  	
  (221.8

  	
  )%

  	
  (219.7

  	
  )%

  	
  159.4

  	
  %

  	
  (94.0

  	
  )%

  	
  (256.4

  	
  )%

  	
  (162.6

  	
  )%

  
	
  Return on equity

  	
   

  	
  71.6

  	
  %

  	
  54.2

  	
  %

  	
  55.8

  	
  %

  	
  (1.3

  	
  )%

  	
  137.2

  	
  %

  	
  63.9

  	
  %

  	
  63.5

  	
  %

  	
  310.9

  	
  %

  

 

Notes:

(1)
Growth averages calculated as compound annual growth rates.

NMF
= Not meaningful figure.

N/A
= Data insufficient to perform these calculations.

Differences
due to rounding.

 

 

Exhibit 2

Apollo LNG, Inc.

Adjusted Comparative Summary Balance Sheet

 

	
   

  	
   

  	
  Fiscal years ended

  September 30,

  	
   

  	
  As of

  Jun. 30,

  	
   

  	
  Average

  	
   

  
	
  (in thousands of $ unless otherwise noted)

  	
   

  	
  2001

  	
   

  	
  2002

  	
   

  	
  2003

  	
   

  	
  2004

  	
   

  	
  2005

  	
   

  	
  2006

  	
   

  	
  2003-2005

  	
   

  	
  2001-2005

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ASSETS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Current assets:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cash and
  equivalents

  	
   

  	
  0.0

  	
   

  	
  27.6

  	
   

  	
  237.9

  	
   

  	
  69.5

  	
   

  	
  4,032.3

  	
   

  	
  51.5

  	
   

  	
  1,446.6

  	
   

  	
  873.5

  	
   

  
	
  Accounts
  receivable

  	
   

  	
  2,171.3

  	
   

  	
  3,174.0

  	
   

  	
  2,897.8

  	
   

  	
  2,671.9

  	
   

  	
  2,907.1

  	
   

  	
  2,753.1

  	
   

  	
  2,825.6

  	
   

  	
  2,764.4

  	
   

  
	
  Inventory

  	
   

  	
  1,030.5

  	
   

  	
  55.5

  	
   

  	
  79.1

  	
   

  	
  76.9

  	
   

  	
  48.5

  	
   

  	
  468.2

  	
   

  	
  68.2

  	
   

  	
  258.1

  	
   

  
	
  Prepaid expenses

  	
   

  	
  0.0

  	
   

  	
  89.2

  	
   

  	
  112.4

  	
   

  	
  74.0

  	
   

  	
  100.9

  	
   

  	
  1,524.7

  	
   

  	
  95.8

  	
   

  	
  75.3

  	
   

  
	
  Accounts
  receivable, related parties

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
  Recovery claims
  for vendor cover costs

  	
   

  	
  0.0

  	
   

  	
  1,450.6

  	
   

  	
  523.4

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  174.5

  	
   

  	
  394.8

  	
   

  
	
  Other receivables

  	
   

  	
  30.0

  	
   

  	
  486.0

  	
   

  	
  140.0

  	
   

  	
  0.0

  	
   

  	
  30.0

  	
   

  	
  1.0

  	
   

  	
  56.7

  	
   

  	
  137.2

  	
   

  
	
  Other
  receivables, related parties

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
  Notes receivable

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
  Total current
  assets

  	
   

  	
  8,434.3

  	
   

  	
  5,282.9

  	
   

  	
  3,990.6

  	
   

  	
  2,892.3

  	
   

  	
  7,118.9

  	
   

  	
  4,798.4

  	
   

  	
  4,667.3

  	
   

  	
  5,543.8

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gross fixed
  assets

  	
   

  	
  11,876.4

  	
   

  	
  16,538.3

  	
   

  	
  16,783.2

  	
   

  	
  16,849.5

  	
   

  	
  24,911.2

  	
   

  	
  17,598.9

  	
   

  	
  19,514.6

  	
   

  	
  17,391.7

  	
   

  
	
  Accumulated
  depreciation, amortization and depletion

  	
   

  	
  (3,263.8

  	
  )

  	
  (3,328.8

  	
  )

  	
  (4,535.5

  	
  )

  	
  (5,702.3

  	
  )

  	
  (6,684.3

  	
  )

  	
  (6,857.8

  	
  )

  	
  (5,640.7

  	
  )

  	
  (4,703.0

  	
  )

  
	
  Net fixed assets

  	
   

  	
  8,612.5

  	
   

  	
  13,209.5

  	
   

  	
  12,247.7

  	
   

  	
  11,147.2

  	
   

  	
  18,226.9

  	
   

  	
  10,741.1

  	
   

  	
  13,873.9

  	
   

  	
  12,688.8

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other assets:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Notes receivable

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  21.5

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  7.2

  	
   

  	
  4.3

  	
   

  
	
  Notes receivable,
  related parties

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
  Equipment
  inventory

  	
   

  	
  0.0

  	
   

  	
  814.9

  	
   

  	
  735.1

  	
   

  	
  1,251.8

  	
   

  	
  436.9

  	
   

  	
  0.0

  	
   

  	
  807.9

  	
   

  	
  647.7

  	
   

  
	
  Development
  projects in process

  	
   

  	
  0.0

  	
   

  	
  2,630.3

  	
   

  	
  1,950.3

  	
   

  	
  1,709.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  1,219.7

  	
   

  	
  1,257.9

  	
   

  
	
  Deposits -
  utilities and gas supply

  	
   

  	
  16.0

  	
   

  	
  21.0

  	
   

  	
  1.0

  	
   

  	
  1.0

  	
   

  	
  451.0

  	
   

  	
  451.0

  	
   

  	
  151.0

  	
   

  	
  98.0

  	
   

  
	
  Deferred tax
  assets, net

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  270.6

  	
   

  	
  454.6

  	
   

  	
  433.5

  	
   

  	
  0.0

  	
   

  	
  386.2

  	
   

  	
  231.7

  	
   

  
	
  Other assets

  	
   

  	
  219.4

  	
   

  	
  202.4

  	
   

  	
  106.9

  	
   

  	
  149.4

  	
   

  	
  92.2

  	
   

  	
  24,067.0

  	
   

  	
  116.2

  	
   

  	
  154.1

  	
   

  
	
  Total other
  assets

  	
   

  	
  235.4

  	
   

  	
  3,668.7

  	
   

  	
  3,085.4

  	
   

  	
  3,565.8

  	
   

  	
  1,413.5

  	
   

  	
  24,518.1

  	
   

  	
  2,688.2

  	
   

  	
  2,393.8

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total assets

  	
   

  	
  17,282.2

  	
   

  	
  22,161.0

  	
   

  	
  19,323.7

  	
   

  	
  17,605.3

  	
   

  	
  26,759.3

  	
   

  	
  40,057.6

  	
   

  	
  21,229.4

  	
   

  	
  20,626.3

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LIABILITIES &
  EQUITY

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Current
  liabilities:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounts payable

  	
   

  	
  2,862.6

  	
   

  	
  4,164.4

  	
   

  	
  3,787.9

  	
   

  	
  3,357.6

  	
   

  	
  3,733.0

  	
   

  	
  903.6

  	
   

  	
  3,626.2

  	
   

  	
  3,581.1

  	
   

  
	
  Debt in current
  liabilities

  	
   

  	
  2,292.7

  	
   

  	
  9,809.8

  	
   

  	
  9,582.6

  	
   

  	
  9,555.6

  	
   

  	
  2,855.8

  	
   

  	
  761.3

  	
   

  	
  7,331.3

  	
   

  	
  6,819.3

  	
   

  
	
  Accounts payable,
  related parties

  	
   

  	
  5,005.0

  	
   

  	
  2,942.9

  	
   

  	
  6,500.7

  	
   

  	
  2,816.5

  	
   

  	
  330.4

  	
   

  	
  0.0

  	
   

  	
  3,215.9

  	
   

  	
  3,519.1

  	
   

  
	
  Accrued expenses
  and other payables

  	
   

  	
  75.5

  	
   

  	
  109.4

  	
   

  	
  291.2

  	
   

  	
  446.4

  	
   

  	
  1,056.7

  	
   

  	
  0.0

  	
   

  	
  598.1

  	
   

  	
  395.8

  	
   

  
	
  Accrued interest,
  related parties

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  340.8

  	
   

  	
  711.4

  	
   

  	
  290.8

  	
   

  	
  0.0

  	
   

  	
  447.6

  	
   

  	
  268.6

  	
   

  
	
  Unearned revenues

  	
   

  	
  0.0

  	
   

  	
  145.0

  	
   

  	
  5.0

  	
   

  	
  5.0

  	
   

  	
  226.1

  	
   

  	
  0.0

  	
   

  	
  78.7

  	
   

  	
  76.2

  	
   

  
	
  Unearned grant
  revenues

  	
   

  	
  0.0

  	
   

  	
  356.5

  	
   

  	
  265.9

  	
   

  	
  225.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  163.6

  	
   

  	
  169.5

  	
   

  
	
  Bank overdraft

  	
   

  	
  490.0

  	
   

  	
  19.2

  	
   

  	
  46.7

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  15.6

  	
   

  	
  111.2

  	
   

  
	
  Total current
  liabilities

  	
   

  	
  10,725.7

  	
   

  	
  17,547.3

  	
   

  	
  20,820.8

  	
   

  	
  17,117.4

  	
   

  	
  8,492.8

  	
   

  	
  1,664.9

  	
   

  	
  15,477.0

  	
   

  	
  14,940.8

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other
  liabilities:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Long-term debt

  	
   

  	
  11,283.4

  	
   

  	
  9,859.5

  	
   

  	
  8,201.0

  	
   

  	
  11,373.5

  	
   

  	
  5,731.1

  	
   

  	
  12,529.5

  	
   

  	
  8,435.2

  	
   

  	
  9,289.7

  	
   

  
	
  Deferred tax
  liability

  	
   

  	
  0.0

  	
   

  	
  38.2

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  7.6

  	
   

  
	
  Total other
  liabilities

  	
   

  	
  11,283.4

  	
   

  	
  9,897.7

  	
   

  	
  8,201.0

  	
   

  	
  11,373.5

  	
   

  	
  5,731.1

  	
   

  	
  12,529.5

  	
   

  	
  8,435.2

  	
   

  	
  9,297.3

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total liabilities

  	
   

  	
  22,009.1

  	
   

  	
  27,445.0

  	
   

  	
  29,021.8

  	
   

  	
  28,490.9

  	
   

  	
  14,223.9

  	
   

  	
  14,194.4

  	
   

  	
  23,912.2

  	
   

  	
  24,238.1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Minority interest

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  7.5

  	
   

  	
  (5.4

  	
  )

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.7

  	
   

  	
  0.4

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Equity:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Capital stock

  	
   

  	
  0.0

  	
   

  	
  487.9

  	
   

  	
  487.9

  	
   

  	
  487.9

  	
   

  	
  487.9

  	
   

  	
  0.0

  	
   

  	
  487.9

  	
   

  	
  390.4

  	
   

  
	
  Preferred stock -
  Series A

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  12,500.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
  Preferred stock -
  Series B

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  12,500.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
  Paid-in capital

  	
   

  	
  (423.0

  	
  )

  	
  (1,298.9

  	
  )

  	
  (683.7

  	
  )

  	
  (1,970.9

  	
  )

  	
  (11,426.8

  	
  )

  	
  3,842.3

  	
   

  	
  (4,693.8

  	
  )

  	
  (3,160.7

  	
  )

  
	
  Retained earnings

  	
   

  	
  (4,303.9

  	
  )

  	
  (4,473.0

  	
  )

  	
  (9,509.9

  	
  )

  	
  (9,397.2

  	
  )

  	
  23,474.2

  	
   

  	
  (2,979.1

  	
  )

  	
  1,522.4

  	
   

  	
  (841.9

  	
  )

  
	
  Total equity

  	
   

  	
  (4,726.9

  	
  )

  	
  (5,283.9

  	
  )

  	
  (9,705.7

  	
  )

  	
  (10,880.2

  	
  )

  	
  12,535.4

  	
   

  	
  25,863.2

  	
   

  	
  (2,683.5

  	
  )

  	
  (3,612.3

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total liabilities
  and equity

  	
   

  	
  17,282.2

  	
   

  	
  22,161.0

  	
   

  	
  19,323.7

  	
   

  	
  17,605.3

  	
   

  	
  26,759.3

  	
   

  	
  40,057.6

  	
   

  	
  21,229.4

  	
   

  	
  20,626.3

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Additional data:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net working
  capital

  	
   

  	
  (2,291.4

  	
  )

  	
  (12,264.4

  	
  )

  	
  (16,830.2

  	
  )

  	
  (14,225.1

  	
  )

  	
  (1,373.9

  	
  )

  	
  3,133.5

  	
   

  	
  (10,809.7

  	
  )

  	
  (9,397.0

  	
  )

  
	
  Working capital
  excluding cash and debt

  	
   

  	
  (5,201.2

  	
  )

  	
  (2,482.2

  	
  )

  	
  (7,485.5

  	
  )

  	
  (4,739.0

  	
  )

  	
  (2,550.4

  	
  )

  	
  3,843.3

  	
   

  	
  (4,925.0

  	
  )

  	
  (4,491.7

  	
  )

  
	
  Total interest
  bearing debt

  	
   

  	
  13,576.1

  	
   

  	
  19,669.3

  	
   

  	
  17,783.6

  	
   

  	
  20,929.0

  	
   

  	
  8,586.9

  	
   

  	
  13,290.8

  	
   

  	
  15,766.5

  	
   

  	
  16,109.0

  	
   

  
	
  Total invested
  capital

  	
   

  	
  8,849.2

  	
   

  	
  14,385.4

  	
   

  	
  8,077.9

  	
   

  	
  10,048.9

  	
   

  	
  21,122.3

  	
   

  	
  39,154.0

  	
   

  	
  13,083.0

  	
   

  	
  12,496.7

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Adjustments to
  total equity:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Remove
  nonoperating assets

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounts receivable, related parties

  	
   

  	
  (68.0

  	
  )

  	
  (638.7

  	
  )

  	
  (358.6

  	
  )

  	
  (154.6

  	
  )

  	
  (248.7

  	
  )

  	
  208.6

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other receivables, related parties

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  (23.2

  	
  )

  	
  (61.4

  	
  )

  	
  (163.7

  	
  )

  	
  0.0

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Note receivable

  	
   

  	
  (355.0

  	
  )

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  (1,714.4

  	
  )

  	
  (25.9

  	
  )

  	
   

  	
   

  	
   

  	
   

  
	
  Note receivable, related parties

  	
   

  	
  0.0

  	
   

  	
  (660.2

  	
  )

  	
  (302.0

  	
  )

  	
  (1,755.0

  	
  )

  	
  (9,300.0

  	
  )

  	
  (3,320.4

  	
  )

  	
   

  	
   

  	
   

  	
   

  
	
  Investment

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (700.0

  	
  )

  	
   

  	
   

  	
   

  	
   

  
	
  Net adjustment to
  total equity

  	
   

  	
  (423.0

  	
  )

  	
  (1,298.9

  	
  )

  	
  (683.7

  	
  )

  	
  (1,970.9

  	
  )

  	
  (11,426.8

  	
  )

  	
  (3,837.7

  	
  )

  	
   

  	
   

  	
   

  	
   

  

 

Sources
and Notes:

Financial
statements audited by Johnson & Sheldon, P.C.

Differences
due to rounding.

 

 

Apollo LNG, Inc.

Common Size Adjusted Comparative Summary Balance Sheet

 

	
   

  	
   

  	
  Fiscal years ended

  	
   

  	
  As of

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  September 30,

  	
   

  	
  Jun. 30,

  	
   

  	
  Average

  	
   

  
	
   

  	
   

  	
  2001

  	
   

  	
  2002

  	
   

  	
  2003

  	
   

  	
  2004

  	
   

  	
  2005

  	
   

  	
  2006

  	
   

  	
  2003-2005

  	
   

  	
  2001-2005

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ASSETS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Current assets:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cash and
  equivalents

  	
   

  	
  0.0

  	
  %

  	
  0.1

  	
  %

  	
  1.2

  	
  %

  	
  0.4

  	
  %

  	
  15.1

  	
  %

  	
  0.1

  	
  %

  	
  5.6

  	
  %

  	
  3.4

  	
  %

  
	
  Accounts
  receivable

  	
   

  	
  12.6

  	
  %

  	
  14.3

  	
  %

  	
  15.0

  	
  %

  	
  15.2

  	
  %

  	
  10.9

  	
  %

  	
  6.9

  	
  %

  	
  13.7

  	
  %

  	
  13.6

  	
  %

  
	
  Inventory

  	
   

  	
  6.0

  	
  %

  	
  0.3

  	
  %

  	
  0.4

  	
  %

  	
  0.4

  	
  %

  	
  0.2

  	
  %

  	
  1.2

  	
  %

  	
  0.3

  	
  %

  	
  1.4

  	
  %

  
	
  Prepaid expenses

  	
   

  	
  0.0

  	
  %

  	
  0.4

  	
  %

  	
  0.6

  	
  %

  	
  0.4

  	
  %

  	
  0.4

  	
  %

  	
  3.8

  	
  %

  	
  0.5

  	
  %

  	
  0.4

  	
  %

  
	
  Accounts
  receivable, related parties

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  
	
  Recovery claims
  for vendor cover costs

  	
   

  	
  0.0

  	
  %

  	
  6.5

  	
  %

  	
  2.7

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.9

  	
  %

  	
  1.9

  	
  %

  
	
  Other receivables

  	
   

  	
  0.2

  	
  %

  	
  2.2

  	
  %

  	
  0.7

  	
  %

  	
  0.0

  	
  %

  	
  0.1

  	
  %

  	
  0.0

  	
  %

  	
  0.3

  	
  %

  	
  0.6

  	
  %

  
	
  Other
  receivables, related parties

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  
	
  Notes receivable

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  
	
  Total current
  assets

  	
   

  	
  48.8

  	
  %

  	
  23.8

  	
  %

  	
  20.7

  	
  %

  	
  16.4

  	
  %

  	
  26.6

  	
  %

  	
  12.0

  	
  %

  	
  21.2

  	
  %

  	
  27.3

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gross fixed
  assets

  	
   

  	
  68.7

  	
  %

  	
  74.6

  	
  %

  	
  86.9

  	
  %

  	
  95.7

  	
  %

  	
  93.1

  	
  %

  	
  43.9

  	
  %

  	
  91.9

  	
  %

  	
  83.8

  	
  %

  
	
  Accumulated
  depreciation, amortization and depletion

  	
   

  	
  (18.9

  	
  )%

  	
  (15.0

  	
  )%

  	
  (23.5

  	
  )%

  	
  (32.4

  	
  )%

  	
  (25.0

  	
  )%

  	
  (17.1

  	
  )%

  	
  (26.9

  	
  )%

  	
  (22.9

  	
  )%

  
	
  Net fixed assets

  	
   

  	
  49.8

  	
  %

  	
  59.6

  	
  %

  	
  63.4

  	
  %

  	
  63.3

  	
  %

  	
  68.1

  	
  %

  	
  26.8

  	
  %

  	
  64.9

  	
  %

  	
  60.9

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other assets:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Notes receivable

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.1

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  
	
  Notes receivable,
  related parties

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  
	
  Equipment
  inventory

  	
   

  	
  0.0

  	
  %

  	
  3.7

  	
  %

  	
  3.8

  	
  %

  	
  7.1

  	
  %

  	
  1.6

  	
  %

  	
  0.0

  	
  %

  	
  4.2

  	
  %

  	
  3.2

  	
  %

  
	
  Development
  projects in process

  	
   

  	
  0.0

  	
  %

  	
  11.9

  	
  %

  	
  10.1

  	
  %

  	
  9.7

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  6.6

  	
  %

  	
  6.3

  	
  %

  
	
  Deposits -
  utilities and gas supply

  	
   

  	
  0.1

  	
  %

  	
  0.1

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  1.7

  	
  %

  	
  1.1

  	
  %

  	
  0.6

  	
  %

  	
  0.4

  	
  %

  
	
  Deferred tax
  assets, net

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  1.4

  	
  %

  	
  2.6

  	
  %

  	
  1.6

  	
  %

  	
  0.0

  	
  %

  	
  1.9

  	
  %

  	
  1.1

  	
  %

  
	
  Other assets

  	
   

  	
  1.3

  	
  %

  	
  0.9

  	
  %

  	
  0.6

  	
  %

  	
  0.8

  	
  %

  	
  0.3

  	
  %

  	
  60.1

  	
  %

  	
  0.6

  	
  %

  	
  0.8

  	
  %

  
	
  Total other
  assets

  	
   

  	
  1.4

  	
  %

  	
  16.6

  	
  %

  	
  16.0

  	
  %

  	
  20.3

  	
  %

  	
  5.3

  	
  %

  	
  61.2

  	
  %

  	
  13.8

  	
  %

  	
  11.9

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total assets

  	
   

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LIABILITIES &
  EQUITY

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Current
  liabilities:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounts payable

  	
   

  	
  16.6

  	
  %

  	
  18.8

  	
  %

  	
  19.6

  	
  %

  	
  19.1

  	
  %

  	
  14.0

  	
  %

  	
  2.3

  	
  %

  	
  17.5

  	
  %

  	
  17.6

  	
  %

  
	
  Debt in current
  liabilities

  	
   

  	
  13.3

  	
  %

  	
  44.3

  	
  %

  	
  49.6

  	
  %

  	
  54.3

  	
  %

  	
  10.7

  	
  %

  	
  1.9

  	
  %

  	
  38.2

  	
  %

  	
  34.4

  	
  %

  
	
  Accounts payable,
  related parties

  	
   

  	
  29.0

  	
  %

  	
  13.3

  	
  %

  	
  33.6

  	
  %

  	
  16.0

  	
  %

  	
  1.2

  	
  %

  	
  0.0

  	
  %

  	
  17.0

  	
  %

  	
  18.6

  	
  %

  
	
  Accrued expenses
  and other payables

  	
   

  	
  0.4

  	
  %

  	
  0.5

  	
  %

  	
  1.5

  	
  %

  	
  2.5

  	
  %

  	
  3.9

  	
  %

  	
  0.0

  	
  %

  	
  2.7

  	
  %

  	
  1.8

  	
  %

  
	
  Accrued interest,
  related parties

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  1.8

  	
  %

  	
  4.0

  	
  %

  	
  1.1

  	
  %

  	
  0.0

  	
  %

  	
  2.3

  	
  %

  	
  1.4

  	
  %

  
	
  Unearned revenues

  	
   

  	
  0.0

  	
  %

  	
  0.7

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.8

  	
  %

  	
  0.0

  	
  %

  	
  0.3

  	
  %

  	
  0.3

  	
  %

  
	
  Unearned grant
  revenues

  	
   

  	
  0.0

  	
  %

  	
  1.6

  	
  %

  	
  1.4

  	
  %

  	
  1.3

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.9

  	
  %

  	
  0.9

  	
  %

  
	
  Bank overdraft

  	
   

  	
  2.8

  	
  %

  	
  0.1

  	
  %

  	
  0.2

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.1

  	
  %

  	
  0.6

  	
  %

  
	
  Total current
  liabilities

  	
   

  	
  62.1

  	
  %

  	
  79.2

  	
  %

  	
  107.7

  	
  %

  	
  97.2

  	
  %

  	
  31.7

  	
  %

  	
  4.2

  	
  %

  	
  78.9

  	
  %

  	
  75.6

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other
  liabilities:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Long-term debt

  	
   

  	
  65.3

  	
  %

  	
  44.5

  	
  %

  	
  42.4

  	
  %

  	
  64.6

  	
  %

  	
  21.4

  	
  %

  	
  31.3

  	
  %

  	
  42.8

  	
  %

  	
  47.6

  	
  %

  
	
  Deferred tax
  liability

  	
   

  	
  0.0

  	
  %

  	
  0.2

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  
	
  Total other
  liabilities

  	
   

  	
  65.3

  	
  %

  	
  44.7

  	
  %

  	
  42.4

  	
  %

  	
  64.6

  	
  %

  	
  21.4

  	
  %

  	
  31.3

  	
  %

  	
  42.8

  	
  %

  	
  47.7

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total liabilities

  	
   

  	
  127.4

  	
  %

  	
  123.8

  	
  %

  	
  150.2

  	
  %

  	
  161.8

  	
  %

  	
  53.2

  	
  %

  	
  35.4

  	
  %

  	
  121.7

  	
  %

  	
  123.3

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Minority interest

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  (0.0

  	
  )%

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Equity:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Capital stock

  	
   

  	
  0.0

  	
  %

  	
  2.2

  	
  %

  	
  2.5

  	
  %

  	
  2.8

  	
  %

  	
  1.8

  	
  %

  	
  0.0

  	
  %

  	
  2.4

  	
  %

  	
  1.9

  	
  %

  
	
  Preferred stock -
  Series A

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  31.2

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  
	
  Preferred stock -
  Series B

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  31.2

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  
	
  Paid-in capital

  	
   

  	
  (2.4

  	
  )%

  	
  (5.9

  	
  )%

  	
  (3.5

  	
  )%

  	
  (11.2

  	
  )%

  	
  (42.7

  	
  )%

  	
  9.6

  	
  %

  	
  (19.1

  	
  )%

  	
  (13.1

  	
  )%

  
	
  Retained earnings

  	
   

  	
  (24.9

  	
  )%

  	
  (20.2

  	
  )%

  	
  (49.2

  	
  )%

  	
  (53.4

  	
  )%

  	
  87.7

  	
  %

  	
  (7.4

  	
  )%

  	
  (5.0

  	
  )%

  	
  (12.0

  	
  )%

  
	
  Total equity

  	
   

  	
  (27.4

  	
  )%

  	
  (23.8

  	
  )%

  	
  (50.2

  	
  )%

  	
  (61.8

  	
  )%

  	
  46.8

  	
  %

  	
  64.6

  	
  %

  	
  (21.7

  	
  )%

  	
  (23.3

  	
  )%

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total liabilities
  and equity

  	
   

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Additional data:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net working
  capital

  	
   

  	
  (13.3

  	
  )%

  	
  (55.3

  	
  )%

  	
  (87.1

  	
  )%

  	
  (80.8

  	
  )%

  	
  (5.1

  	
  )%

  	
  7.8

  	
  %

  	
  (57.7

  	
  )%

  	
  (48.3

  	
  )%

  
	
  Working capital
  excluding cash and debt

  	
   

  	
  (30.1

  	
  )%

  	
  (11.2

  	
  )%

  	
  (38.7

  	
  )%

  	
  (26.9

  	
  )%

  	
  (9.5

  	
  )%

  	
  9.6

  	
  %

  	
  (25.1

  	
  )%

  	
  (23.3

  	
  )%

  
	
  Total interest
  bearing debt

  	
   

  	
  78.6

  	
  %

  	
  88.8

  	
  %

  	
  92.0

  	
  %

  	
  118.9

  	
  %

  	
  32.1

  	
  %

  	
  33.2

  	
  %

  	
  81.0

  	
  %

  	
  82.1

  	
  %

  
	
  Total invested
  capital

  	
   

  	
  51.2

  	
  %

  	
  64.9

  	
  %

  	
  41.8

  	
  %

  	
  57.1

  	
  %

  	
  78.9

  	
  %

  	
  97.7

  	
  %

  	
  59.3

  	
  %

  	
  58.8

  	
  %

  

 

 

Apollo LNG, Inc.

Adjusted Comparative Summary Balance Sheet Growth

 

	
   

  	
   

  	
  Fiscal years ended

  	
   

  	
  As of

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  September 30,

  	
   

  	
  Jun. 30,

  	
   

  	
  CAAGR

  	
   

  
	
   

  	
   

  	
  2002

  	
   

  	
  2003

  	
   

  	
  2004

  	
   

  	
  2005

  	
   

  	
  2006

  	
   

  	
  2003-2005

  	
   

  	
  2001-2005

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ASSETS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Current assets:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cash and
  equivalents

  	
   

  	
  NMF

  	
   

  	
  761.1

  	
  %

  	
  (70.8

  	
  )%

  	
  5702.9

  	
  %

  	
  (99.7

  	
  )%

  	
  311.7

  	
  %

  	
  NMF

  	
   

  
	
  Accounts
  receivable

  	
   

  	
  46.2

  	
  %

  	
  (8.7

  	
  )%

  	
  (7.8

  	
  )%

  	
  8.8

  	
  %

  	
  (7.0

  	
  )%

  	
  0.2

  	
  %

  	
  7.6

  	
  %

  
	
  Inventory

  	
   

  	
  (94.6

  	
  )%

  	
  42.4

  	
  %

  	
  (2.7

  	
  )%

  	
  (37.0

  	
  )%

  	
  1954.7

  	
  %

  	
  (21.7

  	
  )%

  	
  (53.4

  	
  )%

  
	
  Prepaid expenses

  	
   

  	
  NMF

  	
   

  	
  26.1

  	
  %

  	
  (34.2

  	
  )%

  	
  36.4

  	
  %

  	
  3636.7

  	
  %

  	
  (5.3

  	
  )%

  	
  NMF

  	
   

  
	
  Accounts receivable,
  related parties

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
  Recovery claims
  for vendor cover costs

  	
   

  	
  NMF

  	
   

  	
  (63.9

  	
  )%

  	
  (100.0

  	
  )%

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  (100.0

  	
  )%

  	
  NMF

  	
   

  
	
  Other receivables

  	
   

  	
  1520.0

  	
  %

  	
  (71.2

  	
  )%

  	
  (100.0

  	
  )%

  	
  NMF

  	
   

  	
  (99.0

  	
  )%

  	
  (53.7

  	
  )%

  	
  0.0

  	
  %

  
	
  Other
  receivables, related parties

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
  Notes receivable

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
  Total current
  assets

  	
   

  	
  (37.4

  	
  )%

  	
  (24.5

  	
  )%

  	
  (27.5

  	
  )%

  	
  146.1

  	
  %

  	
  (40.9

  	
  )%

  	
  33.6

  	
  %

  	
  (4.2

  	
  )%

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gross fixed
  assets

  	
   

  	
  39.3

  	
  %

  	
  1.5

  	
  %

  	
  0.4

  	
  %

  	
  47.8

  	
  %

  	
  (37.1

  	
  )%

  	
  21.8

  	
  %

  	
  20.3

  	
  %

  
	
  Accumulated
  depreciation, amortization and depletion

  	
   

  	
  2.0

  	
  %

  	
  36.3

  	
  %

  	
  25.7

  	
  %

  	
  17.2

  	
  %

  	
  3.5

  	
  %

  	
  21.4

  	
  %

  	
  19.6

  	
  %

  
	
  Net fixed assets

  	
   

  	
  53.4

  	
  %

  	
  (7.3

  	
  )%

  	
  (9.0

  	
  )%

  	
  63.5

  	
  %

  	
  (50.6

  	
  )%

  	
  22.0

  	
  %

  	
  20.6

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other assets:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Notes receivable

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  (100.0

  	
  )%

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  (100.0

  	
  )%

  	
  NMF

  	
   

  
	
  Notes receivable,
  related parties

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
  Equipment
  inventory

  	
   

  	
  NMF

  	
   

  	
  (9.8

  	
  )%

  	
  70.3

  	
  %

  	
  (65.1

  	
  )%

  	
  (100.0

  	
  )%

  	
  (22.9

  	
  )%

  	
  NMF

  	
   

  
	
  Development projects
  in process

  	
   

  	
  NMF

  	
   

  	
  (25.9

  	
  )%

  	
  (12.4

  	
  )%

  	
  (100.0

  	
  )%

  	
  NMF

  	
   

  	
  (100.0

  	
  )%

  	
  NMF

  	
   

  
	
  Deposits -
  utilities and gas supply

  	
   

  	
  31.2

  	
  %

  	
  (95.1

  	
  )%

  	
  0.0

  	
  %

  	
  44117.6

  	
  %

  	
  0.0

  	
  %

  	
  2002.8

  	
  %

  	
  130.3

  	
  %

  
	
  Deferred tax
  assets, net

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  68.0

  	
  %

  	
  (4.7

  	
  )%

  	
  (100.0

  	
  )%

  	
  26.6

  	
  %

  	
  NMF

  	
   

  
	
  Other assets

  	
   

  	
  (7.7

  	
  )%

  	
  (47.2

  	
  )%

  	
  39.7

  	
  %

  	
  (38.3

  	
  )%

  	
  166817.1

  	
  %

  	
  (7.2

  	
  )%

  	
  (19.5

  	
  )%

  
	
  Total other
  assets

  	
   

  	
  1458.5

  	
  %

  	
  (15.9

  	
  )%

  	
  15.6

  	
  %

  	
  (60.4

  	
  )%

  	
  4390.0

  	
  %

  	
  (32.3

  	
  )%

  	
  56.5

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total assets

  	
   

  	
  28.2

  	
  %

  	
  (12.8

  	
  )%

  	
  (8.9

  	
  )%

  	
  52.0

  	
  %

  	
  71.2

  	
  %

  	
  17.7

  	
  %

  	
  11.5

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LIABILITIES &
  EQUITY

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Current
  liabilities:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounts payable

  	
   

  	
  45.5

  	
  %

  	
  (9.0

  	
  )%

  	
  (11.4

  	
  )%

  	
  11.2

  	
  %

  	
  (84.9

  	
  )%

  	
  (0.7

  	
  )%

  	
  6.9

  	
  %

  
	
  Debt in current
  liabilities

  	
   

  	
  327.9

  	
  %

  	
  (2.3

  	
  )%

  	
  (0.3

  	
  )%

  	
  (70.1

  	
  )%

  	
  (82.8

  	
  )%

  	
  (45.4

  	
  )%

  	
  5.6

  	
  %

  
	
  Accounts payable,
  related parties

  	
   

  	
  (41.2

  	
  )%

  	
  120.9

  	
  %

  	
  (56.7

  	
  )%

  	
  (88.3

  	
  )%

  	
  (100.0

  	
  )%

  	
  (77.5

  	
  )%

  	
  (49.3

  	
  )%

  
	
  Accrued expenses
  and other payables

  	
   

  	
  44.9

  	
  %

  	
  166.2

  	
  %

  	
  53.3

  	
  %

  	
  136.7

  	
  %

  	
  (100.0

  	
  )%

  	
  90.5

  	
  %

  	
  93.4

  	
  %

  
	
  Accrued interest,
  related parties

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  108.7

  	
  %

  	
  (59.1

  	
  )%

  	
  (100.0

  	
  )%

  	
  (7.6

  	
  )%

  	
  NMF

  	
   

  
	
  Unearned revenues

  	
   

  	
  NMF

  	
   

  	
  (96.6

  	
  )%

  	
  0.0

  	
  %

  	
  4421.9

  	
  %

  	
  (100.0

  	
  )%

  	
  572.4

  	
  %

  	
  NMF

  	
   

  
	
  Unearned grant
  revenues

  	
   

  	
  NMF

  	
   

  	
  (25.4

  	
  )%

  	
  (15.4

  	
  )%

  	
  (100.0

  	
  )%

  	
  NMF

  	
   

  	
  (100.0

  	
  )%

  	
  NMF

  	
   

  
	
  Bank overdraft

  	
   

  	
  (96.1

  	
  )%

  	
  143.0

  	
  %

  	
  (100.0

  	
  )%

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  (100.0

  	
  )%

  	
  (100.0

  	
  )%

  
	
  Total current
  liabilities

  	
   

  	
  63.6

  	
  %

  	
  18.7

  	
  %

  	
  (17.8

  	
  )%

  	
  (50.4

  	
  )%

  	
  (88.6

  	
  )%

  	
  (36.1

  	
  )%

  	
  (5.7

  	
  )%

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other
  liabilities:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Long-term debt

  	
   

  	
  (12.6

  	
  )%

  	
  (16.8

  	
  )%

  	
  38.7

  	
  %

  	
  (49.6

  	
  )%

  	
  183.7

  	
  %

  	
  (16.4

  	
  )%

  	
  (15.6

  	
  )%

  
	
  Deferred tax
  liability

  	
   

  	
  NMF

  	
   

  	
  (100.0

  	
  )%

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
  Total other
  liabilities

  	
   

  	
  (12.3

  	
  )%

  	
  (17.1

  	
  )%

  	
  38.7

  	
  %

  	
  (49.6

  	
  )%

  	
  183.7

  	
  %

  	
  (16.4

  	
  )%

  	
  (15.6

  	
  )%

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total liabilities

  	
   

  	
  24.7

  	
  %

  	
  5.7

  	
  %

  	
  (1.8

  	
  )%

  	
  (50.1

  	
  )%

  	
  (0.3

  	
  )%

  	
  (30.0

  	
  )%

  	
  (10.3

  	
  )%

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Minority interest

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  (171.4

  	
  )%

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  (100.0

  	
  )%

  	
  NMF

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Equity:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Capital stock

  	
   

  	
  NMF

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  (100.0

  	
  )%

  	
  0.0

  	
  %

  	
  NMF

  	
   

  
	
  Preferred stock -
  Series A

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
  Preferred stock -
  Series B

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
  Paid-in capital

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
  Retained earnings

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
  Total equity

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  162.7

  	
  %

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total liabilities
  and equity

  	
   

  	
  28.2

  	
  %

  	
  (12.8

  	
  )%

  	
  (8.9

  	
  )%

  	
  52.0

  	
  %

  	
  71.2

  	
  %

  	
  17.7

  	
  %

  	
  11.5

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Additional data:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net working
  capital

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
  Working capital
  excluding cash and debt

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
  Total interest
  bearing debt

  	
   

  	
  44.9

  	
  %

  	
  (9.6

  	
  )%

  	
  17.7

  	
  %

  	
  (59.0

  	
  )%

  	
  79.0

  	
  %

  	
  (30.5

  	
  )%

  	
  (10.8

  	
  )%

  
	
  Total invested
  capital

  	
   

  	
  62.6

  	
  %

  	
  (43.8

  	
  )%

  	
  24.4

  	
  %

  	
  110.2

  	
  %

  	
  127.7

  	
  %

  	
  61.7

  	
  %

  	
  24.3

  	
  %

  

 

 

Apollo LNG, Inc.

Adjusted Comparative Summary Income Statement

 

	
   

  	
   

  	
  Fiscal years ended

  	
   

  
	
   

  	
   

  	
  September 30,

  	
   

  
	
  (in thousands of $ unless otherwise noted)

  	
   

  	
  2001

  	
   

  	
  2002

  	
   

  	
  2003

  	
   

  	
  2004

  	
   

  	
  2005

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total revenue, net

  	
   

  	
  14,671.6

  	
   

  	
  21,397.5

  	
   

  	
  28,202.4

  	
   

  	
  26,055.3

  	
   

  	
  30,522.7

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total cost of goods sold

  	
   

  	
  11,884.8

  	
   

  	
  16,122.0

  	
   

  	
  26,019.9

  	
   

  	
  21,546.1

  	
   

  	
  25,042.9

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gross profit

  	
   

  	
  2,786.8

  	
   

  	
  5,275.5

  	
   

  	
  2,182.5

  	
   

  	
  4,509.3

  	
   

  	
  5,479.8

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Operating expenses:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Marketing, selling and administrative
  expenses

  	
   

  	
  5,003.7

  	
   

  	
  3,001.5

  	
   

  	
  3,104.9

  	
   

  	
  2,879.2

  	
   

  	
  2,724.5

  	
   

  
	
  Other operating income (expense)

  	
   

  	
  0.0

  	
   

  	
  1,790.9

  	
   

  	
  919.9

  	
   

  	
  458.6

  	
   

  	
  1,709.2

  	
   

  
	
  Total operating expenses

  	
   

  	
  5,003.7

  	
   

  	
  4,792.4

  	
   

  	
  4,024.8

  	
   

  	
  3,337.8

  	
   

  	
  4,433.7

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Operating income

  	
   

  	
  (2,216.9

  	
  )

  	
  483.0

  	
   

  	
  (1,842.3

  	
  )

  	
  1,171.5

  	
   

  	
  1,046.1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other income (expense)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Interest expense

  	
   

  	
  (921.1

  	
  )

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  (1,148.2

  	
  )

  	
  (799.3

  	
  )

  
	
  Gain on LNG contract settlement

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  33,000.0

  	
   

  
	
  Other income

  	
   

  	
  57.8

  	
   

  	
  (3,089.7

  	
  )

  	
  (3,409.4

  	
  )

  	
  (97.7

  	
  )

  	
  (354.2

  	
  )

  
	
  Total other income (expense)

  	
   

  	
  (863.3

  	
  )

  	
  (3,089.7

  	
  )

  	
  (3,409.4

  	
  )

  	
  (1,245.9

  	
  )

  	
  31,846.5

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pretax income

  	
   

  	
  (3,080.2

  	
  )

  	
  (2,606.6

  	
  )

  	
  (5,251.7

  	
  )

  	
  (74.4

  	
  )

  	
  32,892.5

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Income tax expense

  	
   

  	
  (1,078.1

  	
  )

  	
  (912.3

  	
  )

  	
  (1,838.1

  	
  )

  	
  (26.1

  	
  )

  	
  11,512.4

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net income

  	
   

  	
  (2,002.2

  	
  )

  	
  (1,694.3

  	
  )

  	
  (3,413.6

  	
  )

  	
  (48.4

  	
  )

  	
  21,380.1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Additional data:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Depreciation and amortization

  	
   

  	
  1,051.7

  	
   

  	
  981.7

  	
   

  	
  1,042.8

  	
   

  	
  1,075.9

  	
   

  	
  1,044.1

  	
   

  
	
  Capital expenditures

  	
   

  	
  1,401.4

  	
   

  	
  1,326.9

  	
   

  	
  288.3

  	
   

  	
  39.9

  	
   

  	
  20.6

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EBITDA

  	
   

  	
  (1,107.4

  	
  )

  	
  (1,624.9

  	
  )

  	
  (4,208.9

  	
  )

  	
  2,149.7

  	
   

  	
  34,736.0

  	
   

  
	
  EBIT

  	
   

  	
  (2,159.1

  	
  )

  	
  (2,606.6

  	
  )

  	
  (5,251.7

  	
  )

  	
  1,073.8

  	
   

  	
  33,691.9

  	
   

  

 

Sources and Notes:

Financial statements audited by Johnson &
Sheldon, P.C.

LTM = Latest 12 months.

 

 

Apollo LNG, Inc.

Adjusted Common Size Comparative Summary
Income Statement

 

	
   

  	
   

  	
  Fiscal years ended

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  September 30,

  	
   

  	
  Average

  	
   

  
	
   

  	
   

  	
  2001

  	
   

  	
  2002

  	
   

  	
  2003

  	
   

  	
  2004

  	
   

  	
  2005

  	
   

  	
  2003-2005

  	
   

  	
  2001-2005

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total revenue, net

  	
   

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total cost of goods sold

  	
   

  	
  81.0

  	
  %

  	
  75.3

  	
  %

  	
  92.3

  	
  %

  	
  82.7

  	
  %

  	
  82.0

  	
  %

  	
  85.7

  	
  %

  	
  82.7

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gross profit

  	
   

  	
  19.0

  	
  %

  	
  24.7

  	
  %

  	
  7.7

  	
  %

  	
  17.3

  	
  %

  	
  18.0

  	
  %

  	
  14.3

  	
  %

  	
  17.3

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Operating expenses:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Marketing, selling and administrative
  expenses

  	
   

  	
  34.1

  	
  %

  	
  14.0

  	
  %

  	
  11.0

  	
  %

  	
  11.1

  	
  %

  	
  8.9

  	
  %

  	
  10.3

  	
  %

  	
  15.8

  	
  %

  
	
  Other operating income (expense)

  	
   

  	
  0.0

  	
  %

  	
  8.4

  	
  %

  	
  3.3

  	
  %

  	
  1.8

  	
  %

  	
  5.6

  	
  %

  	
  3.5

  	
  %

  	
  3.8

  	
  %

  
	
  Total operating expenses

  	
   

  	
  34.1

  	
  %

  	
  22.4

  	
  %

  	
  14.3

  	
  %

  	
  12.8

  	
  %

  	
  14.5

  	
  %

  	
  13.9

  	
  %

  	
  19.6

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Operating income

  	
   

  	
  (15.1

  	
  )%

  	
  2.3

  	
  %

  	
  (6.5

  	
  )%

  	
  4.5

  	
  %

  	
  3.4

  	
  %

  	
  0.5

  	
  %

  	
  (2.3

  	
  )%

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other income (expense)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Interest expense

  	
   

  	
  (6.3

  	
  )%

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  (4.4

  	
  )%

  	
  (2.6

  	
  )%

  	
  (2.3

  	
  )%

  	
  (2.7

  	
  )%

  
	
  Gain on LNG contract settlement

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  108.1

  	
  %

  	
  36.0

  	
  %

  	
  21.6

  	
  %

  
	
  Other income

  	
   

  	
  0.4

  	
  %

  	
  (14.4

  	
  )%

  	
  (12.1

  	
  )%

  	
  (0.4

  	
  )%

  	
  (1.2

  	
  )%

  	
  (4.5

  	
  )%

  	
  (5.5

  	
  )%

  
	
  Total other income (expense)

  	
   

  	
  (5.9

  	
  )%

  	
  (14.4

  	
  )%

  	
  (12.1

  	
  )%

  	
  (4.8

  	
  )%

  	
  104.3

  	
  %

  	
  29.2

  	
  %

  	
  13.4

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pretax income

  	
   

  	
  (21.0

  	
  )%

  	
  (12.2

  	
  )%

  	
  (18.6

  	
  )%

  	
  (0.3

  	
  )%

  	
  107.8

  	
  %

  	
  29.6

  	
  %

  	
  11.1

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Income tax expense

  	
   

  	
  (7.3

  	
  )%

  	
  (4.3

  	
  )%

  	
  (6.5

  	
  )%

  	
  (0.1

  	
  )%

  	
  37.7

  	
  %

  	
  10.4

  	
  %

  	
  3.9

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net income

  	
   

  	
  (13.6

  	
  )%

  	
  (7.9

  	
  )%

  	
  (12.1

  	
  )%

  	
  (0.2

  	
  )%

  	
  70.0

  	
  %

  	
  19.3

  	
  %

  	
  7.2

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Additional data:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Depreciation and amortization

  	
   

  	
  7.2

  	
  %

  	
  4.6

  	
  %

  	
  3.7

  	
  %

  	
  4.1

  	
  %

  	
  3.4

  	
  %

  	
  3.7

  	
  %

  	
  4.6

  	
  %

  
	
  Capital expenditures

  	
   

  	
  9.6

  	
  %

  	
  6.2

  	
  %

  	
  1.0

  	
  %

  	
  0.2

  	
  %

  	
  0.1

  	
  %

  	
  0.4

  	
  %

  	
  3.4

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EBITDA

  	
   

  	
  (7.5

  	
  )%

  	
  (7.6

  	
  )%

  	
  (14.9

  	
  )%

  	
  8.3

  	
  %

  	
  113.8

  	
  %

  	
  35.7

  	
  %

  	
  18.4

  	
  %

  
	
  EBIT

  	
   

  	
  (14.7

  	
  )%

  	
  (12.2

  	
  )%

  	
  (18.6

  	
  )%

  	
  4.1

  	
  %

  	
  110.4

  	
  %

  	
  32.0

  	
  %

  	
  13.8

  	
  %

  

 

 

Apollo LNG, Inc.

Adjusted Comparative Summary Income Statement
Growth

 

	
   

  	
   

  	
  Fiscal years ended

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  September 30,

  	
   

  	
  CAAGR

  	
   

  
	
   

  	
   

  	
  2002

  	
   

  	
  2003

  	
   

  	
  2004

  	
   

  	
  2005

  	
   

  	
  2003-2005

  	
   

  	
  2001-2005

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total revenue, net

  	
   

  	
  45.8

  	
  %

  	
  31.8

  	
  %

  	
  (7.6

  	
  )%

  	
  17.1

  	
  %

  	
  4.0

  	
  %

  	
  20.1

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total cost of goods sold

  	
   

  	
  35.7

  	
  %

  	
  61.4

  	
  %

  	
  (17.2

  	
  )%

  	
  16.2

  	
  %

  	
  (1.9

  	
  )%

  	
  20.5

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gross profit

  	
   

  	
  89.3

  	
  %

  	
  (58.6

  	
  )%

  	
  106.6

  	
  %

  	
  21.5

  	
  %

  	
  58.5

  	
  %

  	
  18.4

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Operating expenses:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Marketing, selling and administrative
  expenses

  	
   

  	
  (40.0

  	
  )%

  	
  3.4

  	
  %

  	
  (7.3

  	
  )%

  	
  (5.4

  	
  )%

  	
  (6.3

  	
  )%

  	
  (14.1

  	
  )%

  
	
  Other operating income (expense)

  	
   

  	
  NMF

  	
   

  	
  (48.6

  	
  )%

  	
  (50.1

  	
  )%

  	
  272.7

  	
  %

  	
  36.3

  	
  %

  	
  NMF

  	
   

  
	
  Total operating expenses

  	
   

  	
  (4.2

  	
  )%

  	
  (16.0

  	
  )%

  	
  (17.1

  	
  )%

  	
  32.8

  	
  %

  	
  5.0

  	
  %

  	
  (3.0

  	
  )%

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Operating income

  	
   

  	
  NMF

  	
   

  	
  (481.4

  	
  )%

  	
  NMF

  	
   

  	
  (10.7

  	
  )%

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other income (expense)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Interest expense

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  (30.4

  	
  )%

  	
  NMF

  	
   

  	
  (3.5

  	
  )%

  
	
  Gain on LNG contract settlement

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
  Other income

  	
   

  	
  (5446.7

  	
  )%

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
  Total other income (expense)

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pretax income

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Income tax expense

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net income

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Additional data:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Depreciation and amortization

  	
   

  	
  (6.7

  	
  )%

  	
  6.2

  	
  %

  	
  3.2

  	
  %

  	
  (2.9

  	
  )%

  	
  0.1

  	
  %

  	
  (0.2

  	
  )%

  
	
  Capital expenditures

  	
   

  	
  (5.3

  	
  )%

  	
  (78.3

  	
  )%

  	
  (86.2

  	
  )%

  	
  (48.5

  	
  )%

  	
  (73.3

  	
  )%

  	
  (65.2

  	
  )%

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EBITDA

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  1515.9

  	
  %

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
  EBIT

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  3037.6

  	
  %

  	
  NMF

  	
   

  	
  NMF

  	
   

  

 

 

Apollo LNG, Inc.

Adjusted Ratio Analysis

 

	
   

  	
   

  	
  Fiscal years ended

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Guideline

  	
   

  
	
   

  	
   

  	
  September 30,

  	
   

  	
  Average (1)

  	
   

  	
  Company

  	
   

  
	
   

  	
   

  	
  2001

  	
   

  	
  2002

  	
   

  	
  2003

  	
   

  	
  2004

  	
   

  	
  2005

  	
   

  	
  2003-2005

  	
   

  	
  2001-2005

  	
   

  	
  Average

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Liquidity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Current ratio

  	
   

  	
  0.8

  	
   

  	
  0.3

  	
   

  	
  0.2

  	
   

  	
  0.2

  	
   

  	
  0.8

  	
   

  	
  0.4

  	
   

  	
  0.5

  	
   

  	
  7.0

  	
   

  
	
  Quick ratio

  	
   

  	
  0.7

  	
   

  	
  0.2

  	
   

  	
  0.2

  	
   

  	
  0.2

  	
   

  	
  0.8

  	
   

  	
  0.4

  	
   

  	
  0.4

  	
   

  	
  6.6

  	
   

  
	
  Net working capital turnover

  	
   

  	
  -6.4

  	
  x

  	
  -1.7

  	
  x

  	
  -1.7

  	
  x

  	
  -1.8

  	
  x

  	
  -22.2

  	
  x

  	
  -8.6

  	
  x

  	
  -6.8

  	
  x

  	
  1.2

  	
  x

  
	
  Net working capital-to-revenue

  	
   

  	
  (15.6

  	
  )%

  	
  (57.3

  	
  )%

  	
  (59.7

  	
  )%

  	
  (54.6

  	
  )%

  	
  (4.5

  	
  )%

  	
  (39.6

  	
  )%

  	
  (38.3

  	
  )%

  	
  31.7

  	
  %

  
	
  Working capital-to-revenue excluding cash and debt

  	
   

  	
  (35.5

  	
  )%

  	
  (11.6

  	
  )%

  	
  (26.5

  	
  )%

  	
  (18.2

  	
  )%

  	
  (8.4

  	
  )%

  	
  (17.7

  	
  )%

  	
  (20.0

  	
  )%

  	
  (57.7

  	
  )%

  
	
  Cash-to-revenue

  	
   

  	
  0.0

  	
  %

  	
  0.1

  	
  %

  	
  0.8

  	
  %

  	
  0.3

  	
  %

  	
  13.2

  	
  %

  	
  4.8

  	
  %

  	
  2.9

  	
  %

  	
  90.3

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Asset mix

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cash-to-total assets

  	
   

  	
  0.0

  	
  %

  	
  0.1

  	
  %

  	
  1.2

  	
  %

  	
  0.4

  	
  %

  	
  15.1

  	
  %

  	
  5.6

  	
  %

  	
  3.4

  	
  %

  	
  29.0

  	
  %

  
	
  Accounts receivable-to-total assets

  	
   

  	
  12.6

  	
  %

  	
  14.3

  	
  %

  	
  15.0

  	
  %

  	
  15.2

  	
  %

  	
  10.9

  	
  %

  	
  13.7

  	
  %

  	
  13.6

  	
  %

  	
  6.7

  	
  %

  
	
  Inventory-to-total assets

  	
   

  	
  6.0

  	
  %

  	
  0.3

  	
  %

  	
  0.4

  	
  %

  	
  0.4

  	
  %

  	
  0.2

  	
  %

  	
  0.3

  	
  %

  	
  1.4

  	
  %

  	
  4.8

  	
  %

  
	
  Net fixed assets-to-total assets

  	
   

  	
  49.8

  	
  %

  	
  59.6

  	
  %

  	
  63.4

  	
  %

  	
  63.3

  	
  %

  	
  68.1

  	
  %

  	
  64.9

  	
  %

  	
  60.9

  	
  %

  	
  23.1

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Activity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Inventory turnover

  	
   

  	
  11.5

  	
  x

  	
  290.3

  	
  x

  	
  329.0

  	
  x

  	
  280.0

  	
  x

  	
  516.2

  	
  x

  	
  375.1

  	
  x

  	
  285.4

  	
  x

  	
  27.0

  	
  x

  
	
  Inventory days

  	
   

  	
  31.6

  	
   

  	
  1.3

  	
   

  	
  1.1

  	
   

  	
  1.3

  	
   

  	
  0.7

  	
   

  	
  1.0

  	
   

  	
  7.2

  	
   

  	
  55.2

  	
   

  
	
  Accounts receivable turnover

  	
   

  	
  6.8

  	
  x

  	
  6.7

  	
  x

  	
  9.7

  	
  x

  	
  9.8

  	
  x

  	
  10.5

  	
  x

  	
  10.0

  	
  x

  	
  8.7

  	
  x

  	
  8.5

  	
  x

  
	
  Accounts receivable days

  	
   

  	
  54.0

  	
   

  	
  54.1

  	
   

  	
  37.5

  	
   

  	
  37.4

  	
   

  	
  34.8

  	
   

  	
  36.6

  	
   

  	
  43.6

  	
   

  	
  63.2

  	
  x

  
	
  Accounts payable turnover

  	
   

  	
  4.2

  	
  x

  	
  3.9

  	
  x

  	
  6.9

  	
  x

  	
  6.4

  	
  x

  	
  6.7

  	
  x

  	
  6.7

  	
  x

  	
  5.6

  	
  x

  	
  9.9

  	
  x

  
	
  Accounts payable days

  	
   

  	
  87.9

  	
   

  	
  94.3

  	
   

  	
  53.1

  	
   

  	
  56.9

  	
   

  	
  54.4

  	
   

  	
  54.8

  	
   

  	
  69.3

  	
   

  	
  60.1

  	
   

  
	
  Net trade cycle

  	
   

  	
  (2.2

  	
  )

  	
  (38.9

  	
  )

  	
  (14.5

  	
  )

  	
  (18.1

  	
  )

  	
  (18.9

  	
  )

  	
  (17.2

  	
  )

  	
  (18.5

  	
  )

  	
  54.1

  	
   

  
	
  Asset turnover

  	
   

  	
  0.8

  	
  x

  	
  1.0

  	
  x

  	
  1.5

  	
  x

  	
  1.5

  	
  x

  	
  1.1

  	
  x

  	
  1.4

  	
  x

  	
  1.2

  	
  x

  	
  0.4

  	
  x

  
	
  Fixed asset turnover

  	
   

  	
  1.7

  	
  x

  	
  1.6

  	
  x

  	
  2.3

  	
  x

  	
  2.3

  	
  x

  	
  1.7

  	
  x

  	
  2.1

  	
  x

  	
  1.9

  	
  x

  	
  3.6

  	
  x

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Leverage

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total assets-to-equity

  	
   

  	
  -3.7

  	
  x

  	
  -4.2

  	
  x

  	
  -2.0

  	
  x

  	
  -1.6

  	
  x

  	
  2.1

  	
  x

  	
  -0.5

  	
  x

  	
  -1.9

  	
  x

  	
  -1.6

  	
  x

  
	
  Total liabilities-to-equity

  	
   

  	
  -4.7

  	
  x

  	
  -5.2

  	
  x

  	
  -3.0

  	
  x

  	
  -2.6

  	
  x

  	
  1.1

  	
  x

  	
  -1.5

  	
  x

  	
  -2.9

  	
  x

  	
  -2.6

  	
  x

  
	
  Total debt-to-equity

  	
   

  	
  -2.9

  	
  x

  	
  -3.7

  	
  x

  	
  -1.8

  	
  x

  	
  -1.9

  	
  x

  	
  0.7

  	
  x

  	
  -1.0

  	
  x

  	
  -1.9

  	
  x

  	
  -0.1

  	
  x

  
	
  Interest coverage

  	
   

  	
  -2.3

  	
  x

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  0.9

  	
  x

  	
  42.1

  	
  x

  	
  21.5

  	
  x

  	
  13.6

  	
  x

  	
  -10.4

  	
  x

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Growth

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Revenue

  	
   

  	
   

  	
   

  	
  45.8

  	
  %

  	
  31.8

  	
  %

  	
  (7.6

  	
  )%

  	
  17.1

  	
  %

  	
  4.0

  	
  %

  	
  20.1

  	
  %

  	
   

  	
   

  
	
  EBITDA

  	
   

  	
   

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  1515.9

  	
  %

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
   

  	
   

  
	
  EBIT

  	
   

  	
   

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  3037.6

  	
  %

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
   

  	
   

  
	
  Net income

  	
   

  	
   

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
   

  	
   

  
	
  Assets

  	
   

  	
   

  	
   

  	
  28.2

  	
  %

  	
  (12.8

  	
  )%

  	
  (8.9

  	
  )%

  	
  52.0

  	
  %

  	
  17.7

  	
  %

  	
  11.5

  	
  %

  	
   

  	
   

  

 

 

	
   

  	
   

  	
  Fiscal years ended

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Guideline

  	
   

  
	
   

  	
   

  	
  September 30,

  	
   

  	
  Average (1)

  	
   

  	
  Company

  	
   

  
	
   

  	
   

  	
  2001

  	
   

  	
  2002

  	
   

  	
  2003

  	
   

  	
  2004

  	
   

  	
  2005

  	
   

  	
  2003-2005

  	
   

  	
  2001-2005

  	
   

  	
  Average

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Profitability

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gross profit margin

  	
   

  	
  19.0

  	
  %

  	
  24.7

  	
  %

  	
  7.7

  	
  %

  	
  17.3

  	
  %

  	
  18.0

  	
  %

  	
  14.3

  	
  %

  	
  17.3

  	
  %

  	
  7.8

  	
  %

  
	
  Operating expenses-to-revenue

  	
   

  	
  34.1

  	
  %

  	
  22.4

  	
  %

  	
  14.3

  	
  %

  	
  12.8

  	
  %

  	
  14.5

  	
  %

  	
  13.9

  	
  %

  	
  19.6

  	
  %

  	
  120.7

  	
  %

  
	
  Operating margin

  	
   

  	
  (15.1

  	
  )%

  	
  2.3

  	
  %

  	
  (6.5

  	
  )%

  	
  4.5

  	
  %

  	
  3.4

  	
  %

  	
  0.5

  	
  %

  	
  (2.3

  	
  )%

  	
  (112.9

  	
  )%

  
	
  EBITDA-to-revenue

  	
   

  	
  (7.5

  	
  )%

  	
  (7.6

  	
  )%

  	
  (14.9

  	
  )%

  	
  8.3

  	
  %

  	
  113.8

  	
  %

  	
  35.7

  	
  %

  	
  18.4

  	
  %

  	
  -46.5

  	
  %

  
	
  EBIT-to-revenue

  	
   

  	
  (14.7

  	
  )%

  	
  (12.2

  	
  )%

  	
  (18.6

  	
  )%

  	
  4.1

  	
  %

  	
  110.4

  	
  %

  	
  32.0

  	
  %

  	
  13.8

  	
  %

  	
  -53.0

  	
  %

  
	
  Pretax income-to-revenue

  	
   

  	
  (21.0

  	
  )%

  	
  (12.2

  	
  )%

  	
  (18.6

  	
  )%

  	
  (0.3

  	
  )%

  	
  107.8

  	
  %

  	
  29.6

  	
  %

  	
  11.1

  	
  %

  	
  (136.7

  	
  )%

  
	
  Pretax income-to-equity

  	
   

  	
  65.2

  	
  %

  	
  49.3

  	
  %

  	
  54.1

  	
  %

  	
  0.7

  	
  %

  	
  262.4

  	
  %

  	
  105.7

  	
  %

  	
  86.3

  	
  %

  	
  278.6

  	
  %

  
	
  Pretax income-to-total assets

  	
   

  	
  (17.8

  	
  )%

  	
  (11.8

  	
  )%

  	
  (27.2

  	
  )%

  	
  (0.4

  	
  )%

  	
  122.9

  	
  %

  	
  31.8

  	
  %

  	
  13.1

  	
  %

  	
  (25.2

  	
  )%

  
	
  Net income-to-revenue

  	
   

  	
  (13.6

  	
  )%

  	
  (7.9

  	
  )%

  	
  (12.1

  	
  )%

  	
  (0.2

  	
  )%

  	
  70.0

  	
  %

  	
  19.3

  	
  %

  	
  7.2

  	
  %

  	
  -138.3

  	
  %

  
	
  Net income-to-equity

  	
   

  	
  42.4

  	
  %

  	
  32.1

  	
  %

  	
  35.2

  	
  %

  	
  0.4

  	
  %

  	
  170.6

  	
  %

  	
  68.7

  	
  %

  	
  56.1

  	
  %

  	
  276.4

  	
  %

  
	
  Net income-to-total assets

  	
   

  	
  (11.6

  	
  )%

  	
  (7.6

  	
  )%

  	
  (17.7

  	
  )%

  	
  (0.3

  	
  )%

  	
  79.9

  	
  %

  	
  20.7

  	
  %

  	
  8.5

  	
  %

  	
  -26.4

  	
  %

  
	
  Gross cash flow-to-revenue

  	
   

  	
  (6.5

  	
  )%

  	
  (3.3

  	
  )%

  	
  (8.4

  	
  )%

  	
  3.9

  	
  %

  	
  73.5

  	
  %

  	
  23.0

  	
  %

  	
  11.8

  	
  %

  	
  -131.8

  	
  %

  
	
  Effective tax rate

  	
   

  	
  35.0

  	
  %

  	
  35.0

  	
  %

  	
  35.0

  	
  %

  	
  35.0

  	
  %

  	
  35.0

  	
  %

  	
  35.0

  	
  %

  	
  35.0

  	
  %

  	
  20.2

  	
  %

  
	
  Dividends-to-net income

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  -0.1

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Depreciation
  & capital exp.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net income-to-depreciation

  	
   

  	
  (190.4

  	
  )%

  	
  (172.6

  	
  )%

  	
  (327.3

  	
  )%

  	
  (4.5

  	
  )%

  	
  2047.6

  	
  %

  	
  571.9

  	
  %

  	
  270.6

  	
  %

  	
  #REF!

  	
   

  
	
  Depreciation-to-revenue

  	
   

  	
  7.2

  	
  %

  	
  4.6

  	
  %

  	
  3.7

  	
  %

  	
  4.1

  	
  %

  	
  3.4

  	
  %

  	
  3.7

  	
  %

  	
  4.6

  	
  %

  	
  6.5

  	
  %

  
	
  Capital expenditures-to-revenue

  	
   

  	
  9.6

  	
  %

  	
  6.2

  	
  %

  	
  1.0

  	
  %

  	
  0.2

  	
  %

  	
  0.1

  	
  %

  	
  0.4

  	
  %

  	
  3.4

  	
  %

  	
  17.6

  	
  %

  
	
  Capital expenditures-to-depreciation

  	
   

  	
  133.3

  	
  %

  	
  135.2

  	
  %

  	
  27.6

  	
  %

  	
  3.7

  	
  %

  	
  2.0

  	
  %

  	
  11.1

  	
  %

  	
  60.3

  	
  %

  	
  17403.7

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dupont
  analysis

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net income-to-pretax income

  	
   

  	
  65.0

  	
  %

  	
  65.0

  	
  %

  	
  65.0

  	
  %

  	
  65.0

  	
  %

  	
  65.0

  	
  %

  	
  65.0

  	
  %

  	
  65.0

  	
  %

  	
  79.8

  	
  %

  
	
  Pretax income-to-EBIT

  	
   

  	
  142.7

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  (6.9

  	
  )%

  	
  97.6

  	
  %

  	
  63.6

  	
  %

  	
  86.7

  	
  %

  	
  262.0

  	
  %

  
	
  EBIT-to-revenue

  	
   

  	
  (14.7

  	
  )%

  	
  (12.2

  	
  )%

  	
  (18.6

  	
  )%

  	
  4.1

  	
  %

  	
  110.4

  	
  %

  	
  32.0

  	
  %

  	
  13.8

  	
  %

  	
  (53.0

  	
  )%

  
	
  Revenue-to-total assets

  	
   

  	
  84.9

  	
  %

  	
  96.6

  	
  %

  	
  145.9

  	
  %

  	
  148.0

  	
  %

  	
  114.1

  	
  %

  	
  136.0

  	
  %

  	
  117.9

  	
  %

  	
  37.6

  	
  %

  
	
  Total assets-to-equity

  	
   

  	
  (365.6

  	
  )%

  	
  (419.4

  	
  )%

  	
  (199.1

  	
  )%

  	
  (161.8

  	
  )%

  	
  213.5

  	
  %

  	
  (49.1

  	
  )%

  	
  (186.5

  	
  )%

  	
  (162.6

  	
  )%

  
	
  Return on equity

  	
   

  	
  42.4

  	
  %

  	
  32.1

  	
  %

  	
  35.2

  	
  %

  	
  0.4

  	
  %

  	
  170.6

  	
  %

  	
  68.7

  	
  %

  	
  56.1

  	
  %

  	
  310.9

  	
  %

  

 

Notes:

(1)
Growth averages calculated as compound annual growth rates.

NMF
= Not meaningful figure.

N/A
= Data insufficient to perform these calculations.

Differences
due to rounding.

 

 

Exhibit 3

Apollo LNG, Inc.

Comparative Ratio Analysis

 

	
  Ticker
  Definitions:

  	
   

  
	
  AOOR = Apollo Resources
  International

  	
   

  
	
  EBOF = Earth Biofuels Inc.

  	
   

  
	
  EPG = Environmental Power
  Corp.

  	
   

  
	
  FSYS = Fuel Systems
  Solutions, Inc.

  	
   

  
	
  GPRE = Green Plains
  Renewable Energy Inc.

  	
   

  
	
  PEIX = Pacific Ethanol,
  Inc.

  	
   

  
	
  RTK = Rentech, Inc.

  	
   

  
	
  VSE = Verasun Energy, Corp.

  	
   

  
	
  XNL = Xethanol Corporation

  	
   

  

 

	
  Public Company

  	
   

  	
  AOOR

  	
   

  	
  EBOF

  	
   

  	
  EPG

  	
   

  	
  FSYS

  	
   

  	
  GPRE

  	
   

  	
  PEIX

  	
   

  	
  RTK

  	
   

  	
  VSE

  	
   

  	
  XNL

  	
   

  	
  Mean

  	
   

  	
  Median

  	
   

  	
  Apollo LNG

  	
   

  	
  Comparability

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Liquidity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Current ratio

  	
   

  	
  0.2

  	
   

  	
  0.1

  	
   

  	
  1.8

  	
   

  	
  1.6

  	
   

  	
  8.2

  	
   

  	
  6.6

  	
   

  	
  4.4

  	
   

  	
  14.8

  	
   

  	
  25.3

  	
   

  	
  7.0

  	
   

  	
  4.4

  	
   

  	
  2.9

  	
   

  	
  SMALLER

  	
   

  
	
  Quick ratio

  	
   

  	
  0.1

  	
   

  	
  0.0

  	
   

  	
  1.5

  	
   

  	
  0.9

  	
   

  	
  8.1

  	
   

  	
  6.3

  	
   

  	
  3.5

  	
   

  	
  14.0

  	
   

  	
  25.0

  	
   

  	
  6.6

  	
   

  	
  3.5

  	
   

  	
  1.7

  	
   

  	
  SMALLER

  	
   

  
	
  Net working capital turnover

  	
   

  	
  -0.7

  	
  x

  	
  -0.2

  	
  x

  	
  4.2

  	
  x

  	
  4.3

  	
  x

  	
  0.0

  	
  x

  	
  1.1

  	
  x

  	
  0.4

  	
  x

  	
  1.2

  	
  x

  	
  0.3

  	
  x

  	
  1.2

  	
  x

  	
  0.4

  	
  x

  	
  9.7

  	
  x

  	
  LARGER

  	
   

  
	
  Net working capital-to-revenue

  	
   

  	
  (151.4

  	
  )%

  	
  (497.3

  	
  )%

  	
  23.9

  	
  %

  	
  23.2

  	
  %

  	
  N/A

  	
   

  	
  92.8

  	
  %

  	
  285.2

  	
  %

  	
  84.1

  	
  %

  	
  393.1

  	
  %

  	
  31.7

  	
  %

  	
  54.0

  	
  %

  	
  10.3

  	
  %

  	
  SMALLER

  	
   

  
	
  Working capital-to-revenue excluding cash and debt

  	
   

  	
  (121.5

  	
  )%

  	
  (444.7

  	
  )%

  	
  11.2

  	
  %

  	
  17.2

  	
  %

  	
  N/A

  	
   

  	
  (0.8

  	
  )%

  	
  70.6

  	
  %

  	
  9.8

  	
  %

  	
  (3.5

  	
  )%

  	
  (57.7

  	
  )%

  	
  4.5

  	
  %

  	
  12.6

  	
  %

  	
  LARGER

  	
   

  
	
  Cash-to-revenue

  	
   

  	
  3.7

  	
  %

  	
  6.4

  	
  %

  	
  17.9

  	
  %

  	
  8.2

  	
  %

  	
  N/A

  	
   

  	
  95.1

  	
  %

  	
  258.0

  	
  %

  	
  74.4

  	
  %

  	
  259.0

  	
  %

  	
  90.3

  	
  %

  	
  46.1

  	
  %

  	
  0.2

  	
  %

  	
  SMALLER

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Asset mix

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cash-to-total assets

  	
   

  	
  0.9

  	
  %

  	
  1.2

  	
  %

  	
  8.0

  	
  %

  	
  8.8

  	
  %

  	
  61.6

  	
  %

  	
  49.4

  	
  %

  	
  40.5

  	
  %

  	
  44.7

  	
  %

  	
  46.3

  	
  %

  	
  29.0

  	
  %

  	
  40.5

  	
  %

  	
  0.1

  	
  %

  	
  SMALLER

  	
   

  
	
  Accounts receivable-to-total assets

  	
   

  	
  3.8

  	
  %

  	
  1.2

  	
  %

  	
  12.1

  	
  %

  	
  24.7

  	
  %

  	
  0.0

  	
  %

  	
  4.5

  	
  %

  	
  6.2

  	
  %

  	
  6.5

  	
  %

  	
  1.1

  	
  %

  	
  6.7

  	
  %

  	
  4.5

  	
  %

  	
  6.9

  	
  %

  	
  LARGER

  	
   

  
	
  Inventory-to-total assets

  	
   

  	
  1.1

  	
  %

  	
  0.5

  	
  %

  	
  1.2

  	
  %

  	
  26.5

  	
  %

  	
  0.0

  	
  %

  	
  1.1

  	
  %

  	
  10.0

  	
  %

  	
  2.4

  	
  %

  	
  0.3

  	
  %

  	
  4.8

  	
  %

  	
  1.1

  	
  %

  	
  1.2

  	
  %

  	
  SIMILAR

  	
   

  
	
  Net fixed assets-to-total assets

  	
   

  	
  37.0

  	
  %

  	
  34.9

  	
  %

  	
  3.9

  	
  %

  	
  8.3

  	
  %

  	
  27.5

  	
  %

  	
  18.4

  	
  %

  	
  37.1

  	
  %

  	
  29.1

  	
  %

  	
  12.0

  	
  %

  	
  23.1

  	
  %

  	
  27.5

  	
  %

  	
  26.8

  	
  %

  	
  SIMILAR

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Activity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Inventory turnover

  	
   

  	
  24.3

  	
  x

  	
  32.7

  	
  x

  	
  39.1

  	
  x

  	
  2.9

  	
  x

  	
  N/A

  	
   

  	
  46.6

  	
  x

  	
  1.5

  	
  x

  	
  17.3

  	
  x

  	
  51.6

  	
  x

  	
  27.0

  	
  x

  	
  28.5

  	
  x

  	
  53.5

  	
  x

  	
  LARGER

  	
   

  
	
  Inventory days

  	
   

  	
  15.0

  	
   

  	
  11.2

  	
   

  	
  9.3

  	
   

  	
  125.0

  	
   

  	
  N/A

  	
   

  	
  7.8

  	
   

  	
  245.2

  	
   

  	
  21.0

  	
   

  	
  7.1

  	
   

  	
  55.2

  	
   

  	
  13.1

  	
   

  	
  6.8

  	
   

  	
  SMALLER

  	
   

  
	
  Accounts receivable turnover

  	
   

  	
  6.2

  	
  x

  	
  15.0

  	
  x

  	
  3.7

  	
  x

  	
  4.3

  	
  x

  	
  N/A

  	
   

  	
  11.5

  	
  x

  	
  2.5

  	
  x

  	
  9.3

  	
  x

  	
  15.6

  	
  x

  	
  8.5

  	
  x

  	
  7.8

  	
  x

  	
  11.1

  	
  x

  	
  LARGER

  	
   

  
	
  Accounts receivable days

  	
   

  	
  58.8

  	
   

  	
  24.4

  	
   

  	
  99.1

  	
   

  	
  84.5

  	
   

  	
  N/A

  	
   

  	
  31.7

  	
   

  	
  144.3

  	
   

  	
  39.2

  	
   

  	
  23.4

  	
   

  	
  63.2

  	
   

  	
  49.0

  	
   

  	
  32.9

  	
   

  	
  SMALLER

  	
   

  
	
  Accounts payable turnover

  	
   

  	
  5.0

  	
  x

  	
  3.6

  	
  x

  	
  4.4

  	
  x

  	
  2.9

  	
  x

  	
  13.8

  	
  x

  	
  8.9

  	
  x

  	
  6.6

  	
  x

  	
  18.5

  	
  x

  	
  25.3

  	
  x

  	
  9.9

  	
  x

  	
  6.6

  	
  x

  	
  27.7

  	
  x

  	
  LARGER

  	
   

  
	
  Accounts payable days

  	
   

  	
  73.3

  	
   

  	
  101.0

  	
   

  	
  83.2

  	
   

  	
  126.5

  	
   

  	
  26.4

  	
   

  	
  41.0

  	
   

  	
  55.1

  	
   

  	
  19.7

  	
   

  	
  14.4

  	
   

  	
  60.1

  	
   

  	
  55.1

  	
   

  	
  13.2

  	
   

  	
  SMALLER

  	
   

  
	
  Net trade cycle

  	
   

  	
  0.5

  	
   

  	
  (65.5

  	
  )

  	
  25.3

  	
   

  	
  82.9

  	
   

  	
  N/A

  	
   

  	
  (1.5

  	
  )

  	
  334.4

  	
   

  	
  40.6

  	
   

  	
  16.0

  	
   

  	
  54.1

  	
   

  	
  20.7

  	
   

  	
  26.6

  	
   

  	
  LARGER

  	
   

  
	
  Asset turnover

  	
   

  	
  0.2

  	
  x

  	
  0.2

  	
  x

  	
  0.4

  	
  x

  	
  1.1

  	
  x

  	
  0.0

  	
  x

  	
  0.5

  	
  x

  	
  0.2

  	
  x

  	
  0.6

  	
  x

  	
  0.2

  	
  x

  	
  0.4

  	
  x

  	
  0.2

  	
  x

  	
  0.8

  	
   

  	
  LARGER

  	
   

  
	
  Fied asset turnover

  	
   

  	
  0.6

  	
  x

  	
  0.5

  	
  x

  	
  11.5

  	
  x

  	
  12.9

  	
  x

  	
  0.0

  	
  x

  	
  2.8

  	
  x

  	
  0.4

  	
  x

  	
  2.1

  	
  x

  	
  1.5

  	
  x

  	
  3.6

  	
  x

  	
  1.5

  	
  x

  	
  2.8

  	
  x

  	
  LARGER

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Leverage

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total assets-to-equity

  	
   

  	
  2.6

  	
  x

  	
  -31.3

  	
  x

  	
  5.3

  	
  x

  	
  1.9

  	
  x

  	
  1.1

  	
  x

  	
  1.1

  	
  x

  	
  2.0

  	
  x

  	
  1.6

  	
  x

  	
  1.0

  	
  x

  	
  -1.6

  	
  x

  	
  1.6

  	
  x

  	
  1.5

  	
  x

  	
  SIMILAR

  	
   

  
	
  Total liabilities-to-equity

  	
   

  	
  1.6

  	
  x

  	
  -32.3

  	
  x

  	
  4.3

  	
  x

  	
  0.9

  	
  x

  	
  0.1

  	
  x

  	
  0.1

  	
  x

  	
  1.0

  	
  x

  	
  0.6

  	
  x

  	
  0.0

  	
  x

  	
  -2.6

  	
  x

  	
  0.6

  	
  x

  	
  0.5

  	
  x

  	
  SIMILAR

  	
   

  
	
  Total debt-to-equity

  	
   

  	
  0.6

  	
  x

  	
  -3.4

  	
  x

  	
  0.3

  	
  x

  	
  0.1

  	
  x

  	
  0.0

  	
  x

  	
  0.0

  	
  x

  	
  0.8

  	
  x

  	
  0.5

  	
  x

  	
  0.0

  	
  x

  	
  -0.1

  	
  x

  	
  0.1

  	
  x

  	
  0.5

  	
  x

  	
  LARGER

  	
   

  
	
  Interest coverage

  	
   

  	
  -7.2

  	
  x

  	
  -2.6

  	
  x

  	
  -21.6

  	
  x

  	
  15.0

  	
  x

  	
  N/A

  	
   

  	
  -46.8

  	
  x

  	
  -11.2

  	
  x

  	
  3.6

  	
  x

  	
  -12.7

  	
  x

  	
  -10.4

  	
  x

  	
  -9.2

  	
  x

  	
  42.1

  	
  x

  	
  LARGER

  	
   

  

 

Note:  All data based on latest 12 months financial
data.

 

 

Apollo LNG, Inc.

Comparative Ratio Analysis

 

Ticker
Definitions:

AOOR = Apollo Resources
International

EBOF = Earth Biofuels Inc.

EPG = Environmental Power
Corp.

FSYS = Fuel Systems
Solutions, Inc.

GPRE = Green Plains Renewable
Energy Inc.

PEIX = Pacific Ethanol, Inc.

RTK = Rentech, Inc.

VSE = Verasun Energy, Corp.

XNL = Xethanol Corporation

 

	
  Public Company

  	
   

  	
  AOOR

  	
   

  	
  EBOF

  	
   

  	
  EPG

  	
   

  	
  FSYS

  	
   

  	
  GPRE

  	
   

  	
  PEIX

  	
   

  	
  RTK

  	
   

  	
  VSE

  	
   

  	
  XNL

  	
   

  	
  Mean

  	
   

  	
  Median

  	
   

  	
  Apollo LNG

  	
   

  	
  Comparability

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Profitability

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gross profit margin

  	
   

  	
  (13.6

  	
  )%

  	
  6.2

  	
  %

  	
  (2.6

  	
  )%

  	
  27.4

  	
  %

  	
  N/A

  	
   

  	
  5.8

  	
  %

  	
  5.4

  	
  %

  	
  30.3

  	
  %

  	
  3.2

  	
  %

  	
  7.8

  	
  %

  	
  5.6

  	
  %

  	
  18.0

  	
  %

  	
  LARGER

  	
   

  
	
  Operating expenses-to-revenue

  	
   

  	
  229.6

  	
  %

  	
  443.1

  	
  %

  	
  23.7

  	
  %

  	
  20.4

  	
  %

  	
  N/A

  	
   

  	
  10.9

  	
  %

  	
  132.1

  	
  %

  	
  8.4

  	
  %

  	
  97.1

  	
  %

  	
  120.7

  	
  %

  	
  60.4

  	
  %

  	
  14.5

  	
  %

  	
  SMALLER

  	
   

  
	
  Operating margin

  	
   

  	
  (243.1

  	
  )%

  	
  (436.9

  	
  )%

  	
  (26.3

  	
  )%

  	
  7.0

  	
  %

  	
  N/A

  	
   

  	
  (5.1

  	
  )%

  	
  (126.7

  	
  )%

  	
  21.9

  	
  %

  	
  (93.9

  	
  )%

  	
  (112.9

  	
  )%

  	
  (60.1

  	
  )%

  	
  3.4

  	
  %

  	
  LARGER

  	
   

  
	
  EBITDA-to-revenue

  	
   

  	
  (114.2

  	
  )%

  	
  (121.8

  	
  )%

  	
  (21.8

  	
  )%

  	
  10.0

  	
  %

  	
  N/A

  	
   

  	
  (4.1

  	
  )%

  	
  (82.7

  	
  )%

  	
  28.8

  	
  %

  	
  (66.6

  	
  )%

  	
  (46.5

  	
  )%

  	
  (44.2

  	
  )%

  	
  113.8

  	
  %

  	
  LARGER

  	
   

  
	
  EBIT-to-revenue

  	
   

  	
  (143.0

  	
  )%

  	
  (122.0

  	
  )%

  	
  (22.7

  	
  )%

  	
  6.5

  	
  %

  	
  N/A

  	
   

  	
  (5.2

  	
  )%

  	
  (90.5

  	
  )%

  	
  26.9

  	
  %

  	
  (73.9

  	
  )%

  	
  (53.0

  	
  )%

  	
  (48.3

  	
  )%

  	
  110.4

  	
  %

  	
  LARGER

  	
   

  
	
  Pretax income-to-revenue

  	
   

  	
  (241.4

  	
  )%

  	
  (489.8

  	
  )%

  	
  (25.8

  	
  )%

  	
  5.5

  	
  %

  	
  N/A

  	
   

  	
  (62.3

  	
  )%

  	
  (139.8

  	
  )%

  	
  10.3

  	
  %

  	
  (150.1

  	
  )%

  	
  (136.7

  	
  )%

  	
  (101.1

  	
  )%

  	
  107.8

  	
  %

  	
  LARGER

  	
   

  
	
  Pretax income-to-equity

  	
   

  	
  (149.7

  	
  )%

  	
  2802.7

  	
  %

  	
  (60.6

  	
  )%

  	
  11.4

  	
  %

  	
  0.2

  	
  %

  	
  (35.4

  	
  )%

  	
  (43.3

  	
  )%

  	
  9.8

  	
  %

  	
  (27.6

  	
  )%

  	
  278.6

  	
  %

  	
  (27.6

  	
  )%

  	
  127.2

  	
  %

  	
  LARGER

  	
   

  
	
  Pretax income-to-total assets

  	
   

  	
  (56.5

  	
  )%

  	
  (89.6

  	
  )%

  	
  (11.5

  	
  )%

  	
  5.9

  	
  %

  	
  0.2

  	
  %

  	
  (32.4

  	
  )%

  	
  (22.0

  	
  )%

  	
  6.2

  	
  %

  	
  (26.8

  	
  )%

  	
  (25.2

  	
  )%

  	
  (22.0

  	
  )%

  	
  82.1

  	
  %

  	
  LARGER

  	
   

  
	
  Net income-to-revenue

  	
   

  	
  (241.4

  	
  )%

  	
  (489.8

  	
  )%

  	
  (25.6

  	
  )%

  	
  (2.1

  	
  )%

  	
  N/A

  	
   

  	
  (62.3

  	
  )%

  	
  (140.8

  	
  )%

  	
  5.9

  	
  %

  	
  (150.1

  	
  )%

  	
  (138.3

  	
  )%

  	
  (101.6

  	
  )%

  	
  70.0

  	
  %

  	
  LARGER

  	
   

  
	
  Net income-to-equity

  	
   

  	
  (149.7

  	
  )%

  	
  2802.7

  	
  %

  	
  (60.2

  	
  )%

  	
  (4.4

  	
  )%

  	
  0.2

  	
  %

  	
  (35.4

  	
  )%

  	
  (43.6

  	
  )%

  	
  5.6

  	
  %

  	
  (27.6

  	
  )%

  	
  276.4

  	
  %

  	
  (27.6

  	
  )%

  	
  82.7

  	
  %

  	
  LARGER

  	
   

  
	
  Net income-to-total assets

  	
   

  	
  (56.5

  	
  )%

  	
  (89.6

  	
  )%

  	
  (11.4

  	
  )%

  	
  (2.3

  	
  )%

  	
  0.2

  	
  %

  	
  (32.4

  	
  )%

  	
  (22.1

  	
  )%

  	
  3.5

  	
  %

  	
  (26.8

  	
  )%

  	
  (26.4

  	
  )%

  	
  (22.1

  	
  )%

  	
  53.4

  	
  %

  	
  LARGER

  	
   

  
	
  Gross cash flow-to-revenue

  	
   

  	
  (212.7

  	
  )%

  	
  (489.5

  	
  )%

  	
  (24.7

  	
  )%

  	
  1.4

  	
  %

  	
  N/A

  	
   

  	
  (61.2

  	
  )%

  	
  (133.0

  	
  )%

  	
  7.8

  	
  %

  	
  (142.7

  	
  )%

  	
  (131.8

  	
  )%

  	
  (97.1

  	
  )%

  	
  73.5

  	
  %

  	
  LARGER

  	
   

  
	
  Effective tax rate

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.6

  	
  %

  	
  138.9

  	
  %

  	
  0.0

  	
  %

  	
  (0.0

  	
  )%

  	
  (0.7

  	
  )%

  	
  42.9

  	
  %

  	
  0.0

  	
  %

  	
  20.2

  	
  %

  	
  0.0

  	
  %

  	
  35.0

  	
  %

  	
  LARGER

  	
   

  
	
  Dividends-to-net income

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  (0.7

  	
  )%

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  (0.1

  	
  )%

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  SIMILAR

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Depreciation & capital exp.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Depreciation-to-revenue

  	
   

  	
  28.8

  	
  %

  	
  0.2

  	
  %

  	
  1.0

  	
  %

  	
  3.5

  	
  %

  	
  N/A

  	
   

  	
  1.1

  	
  %

  	
  7.8

  	
  %

  	
  2.0

  	
  %

  	
  7.3

  	
  %

  	
  6.5

  	
  %

  	
  2.7

  	
  %

  	
  3.4

  	
  %

  	
  LARGER

  	
   

  
	
  Capital expenditures-to-revenue

  	
   

  	
  27.0

  	
  %

  	
  49.2

  	
  %

  	
  8.2

  	
  %

  	
  2.3

  	
  %

  	
  N/A

  	
   

  	
  29.4

  	
  %

  	
  9.7

  	
  %

  	
  11.2

  	
  %

  	
  4.0

  	
  %

  	
  17.6

  	
  %

  	
  10.5

  	
  %

  	
  0.1

  	
  %

  	
  SMALLER

  	
   

  
	
  Capital expenditures-to-depreciation

  	
   

  	
  0.9

  	
  x

  	
  201.3

  	
  x

  	
  8.5

  	
  x

  	
  0.7

  	
  x

  	
  1320.8

  	
  x

  	
  26.6

  	
  x

  	
  1.2

  	
  x

  	
  5.7

  	
  x

  	
  0.6

  	
  x

  	
  174.0

  	
  x

  	
  5.7

  	
  x

  	
  0.0

  	
  x

  	
  SMALLER

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dupont analysis

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net income-to-pretax income

  	
   

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  99.4

  	
  %

  	
  (38.9

  	
  )%

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.7

  	
  %

  	
  57.1

  	
  %

  	
  100.0

  	
  %

  	
  79.8

  	
  %

  	
  100.0

  	
  %

  	
  65.0

  	
  %

  	
  SMALLER

  	
   

  
	
  Pretax income-to-EBIT

  	
   

  	
  168.9

  	
  %

  	
  401.4

  	
  %

  	
  113.6

  	
  %

  	
  84.8

  	
  %

  	
  (7.9

  	
  )%

  	
  1201.2

  	
  %

  	
  154.5

  	
  %

  	
  38.4

  	
  %

  	
  203.1

  	
  %

  	
  262.0

  	
  %

  	
  154.5

  	
  %

  	
  97.6

  	
  %

  	
  SMALLER

  	
   

  
	
  EBIT-to-revenue

  	
   

  	
  (143.0

  	
  )%

  	
  (122.0

  	
  )%

  	
  (22.7

  	
  )%

  	
  6.5

  	
  %

  	
  N/A

  	
   

  	
  (5.2

  	
  )%

  	
  (90.5

  	
  )%

  	
  26.9

  	
  %

  	
  (73.9

  	
  )%

  	
  (53.0

  	
  )%

  	
  (48.3

  	
  )%

  	
  110.4

  	
  %

  	
  LARGER

  	
   

  
	
  Revenue-to-total assets

  	
   

  	
  23.4

  	
  %

  	
  18.3

  	
  %

  	
  44.5

  	
  %

  	
  106.7

  	
  %

  	
  0.0

  	
  %

  	
  52.0

  	
  %

  	
  15.7

  	
  %

  	
  60.1

  	
  %

  	
  17.9

  	
  %

  	
  37.6

  	
  %

  	
  23.4

  	
  %

  	
  76.2

  	
  %

  	
  LARGER

  	
   

  
	
  Total assets-to-equity

  	
   

  	
  264.9

  	
  %

  	
  (3126.6

  	
  )%

  	
  528.1

  	
  %

  	
  193.6

  	
  %

  	
  109.2

  	
  %

  	
  109.4

  	
  %

  	
  197.1

  	
  %

  	
  157.6

  	
  %

  	
  103.0

  	
  %

  	
  (162.6

  	
  )%

  	
  157.6

  	
  %

  	
  154.9

  	
  %

  	
  SIMILAR

  	
   

  
	
  Return on equity

  	
   

  	
  (149.7

  	
  )%

  	
  2802.7

  	
  %

  	
  (60.2

  	
  )%

  	
  (4.4

  	
  )%

  	
  N/A

  	
   

  	
  (35.4

  	
  )%

  	
  (43.6

  	
  )%

  	
  5.6

  	
  %

  	
  (27.6

  	
  )%

  	
  310.9

  	
  %

  	
  (31.5

  	
  )%

  	
  82.7

  	
  %

  	
  LARGER

  	
   

  

 

Note:  All data based on latest 12 months financial
data.

 

 

Exhibit 4

Apollo LNG, Inc.

Revenue and Gross Profit Forecast

 

	
   

  	
   

  	
  Remaining

  	
   

  	
  Projected

  	
   

  
	
   

  	
   

  	
  3 months

  	
   

  	
  December 31,

  	
   

  
	
   

  	
   

  	
  2006

  	
   

  	
  2007

  	
   

  	
  2008

  	
   

  	
  2009

  	
   

  	
  2010

  	
   

  	
  2011

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gallons of LNG sold

  	
   

  	
  6,471,520

  	
   

  	
  28,470,000

  	
   

  	
  31,311,844

  	
   

  	
  34,437,358

  	
   

  	
  37,874,857

  	
   

  	
  41,655,483

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Product sales - LNG

  	
   

  	
  $

  	
  3,868,640

  	
   

  	
  $

  	
  16,481,164

  	
   

  	
  $

  	
  20,217,566

  	
   

  	
  $

  	
  26,330,202

  	
   

  	
  $

  	
  31,854,299

  	
   

  	
  $

  	
  36,785,658

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cost of goods sold

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Commodity cost

  	
   

  	
  2,703,767

  	
   

  	
  11,356,564

  	
   

  	
  13,955,198

  	
   

  	
  18,065,236

  	
   

  	
  22,006,836

  	
   

  	
  25,122,123

  	
   

  
	
  Fees, imbalances

  	
   

  	
  94,059

  	
   

  	
  394,425

  	
   

  	
  418,825

  	
   

  	
  438,302

  	
   

  	
  482,053

  	
   

  	
  530,171

  	
   

  
	
  LNG delivery

  	
   

  	
  453,006

  	
   

  	
  1,992,900

  	
   

  	
  2,191,829

  	
   

  	
  2,410,615

  	
   

  	
  2,651,240

  	
   

  	
  2,915,884

  	
   

  
	
  Total cost of goods sold

  	
   

  	
  3,250,832

  	
   

  	
  13,743,889

  	
   

  	
  16,565,852

  	
   

  	
  20,914,153

  	
   

  	
  25,140,129

  	
   

  	
  28,568,178

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gross profit (loss)

  	
   

  	
  $

  	
  617,808

  	
   

  	
  $

  	
  2,737,275

  	
   

  	
  $

  	
  3,651,714

  	
   

  	
  $

  	
  5,416,049

  	
   

  	
  $

  	
  6,714,170

  	
   

  	
  $

  	
  8,217,480

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Assumptions:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gallons sold per day

  	
   

  	
  70,921

  	
   

  	
  78,000

  	
   

  	
  85,786

  	
   

  	
  94,349

  	
   

  	
  103,767

  	
   

  	
  114,125

  	
   

  
	
  Gallons sold per day growth

  	
   

  	
   

  	
   

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  	
  10.0

  	
  %

  
	
  Price per gallon

  	
   

  	
  $

  	
  0.60

  	
   

  	
  $

  	
  0.58

  	
   

  	
  $

  	
  0.65

  	
   

  	
  $

  	
  0.76

  	
   

  	
  $

  	
  0.84

  	
   

  	
  $

  	
  0.88

  	
   

  
	
  Price per gallon growth

  	
   

  	
   

  	
   

  	
  (3.2

  	
  )%

  	
  11.5

  	
  %

  	
  18.4

  	
  %

  	
  10.0

  	
  %

  	
  5.0

  	
  %

  
	
  Commodity cost per gallon

  	
   

  	
  $

  	
  0.42

  	
   

  	
  $

  	
  0.40

  	
   

  	
  $

  	
  0.45

  	
   

  	
  $

  	
  0.52

  	
   

  	
  $

  	
  0.58

  	
   

  	
  $

  	
  0.60

  	
   

  
	
  Commodity cost per gallon growth

  	
   

  	
   

  	
   

  	
  (4.5

  	
  )%

  	
  11.7

  	
  %

  	
  17.7

  	
  %

  	
  10.8

  	
  %

  	
  3.8

  	
  %

  
	
  Gross profit per gallon excluding fees

  	
   

  	
  $

  	
  0.18

  	
   

  	
  $

  	
  0.18

  	
   

  	
  $

  	
  0.20

  	
   

  	
  $

  	
  0.24

  	
   

  	
  $

  	
  0.26

  	
   

  	
  $

  	
  0.28

  	
   

  
	
  Monte carlo assumptions

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Low

  	
   

  	
  $

  	
  0.16

  	
   

  	
  $

  	
  0.16

  	
   

  	
  $

  	
  0.18

  	
   

  	
  $

  	
  0.22

  	
   

  	
  $

  	
  0.24

  	
   

  	
  $

  	
  0.26

  	
   

  
	
  Expected

  	
   

  	
  $

  	
  0.18

  	
   

  	
  $

  	
  0.18

  	
   

  	
  $

  	
  0.20

  	
   

  	
  $

  	
  0.24

  	
   

  	
  $

  	
  0.26

  	
   

  	
  $

  	
  0.28

  	
   

  
	
  Max

  	
   

  	
  $

  	
  0.20

  	
   

  	
  $

  	
  0.20

  	
   

  	
  $

  	
  0.22

  	
   

  	
  $

  	
  0.26

  	
   

  	
  $

  	
  0.28

  	
   

  	
  $

  	
  0.30

  	
   

  
	
  Fees per gallon

  	
   

  	
  $

  	
  0.01

  	
   

  	
  $

  	
  0.01

  	
   

  	
  $

  	
  0.01

  	
   

  	
  $

  	
  0.01

  	
   

  	
  $

  	
  0.01

  	
   

  	
  $

  	
  0.01

  	
   

  
	
  LNG delivery per gallon

  	
   

  	
  $

  	
  0.07

  	
   

  	
  $

  	
  0.07

  	
   

  	
  $

  	
  0.07

  	
   

  	
  $

  	
  0.07

  	
   

  	
  $

  	
  0.07

  	
   

  	
  $

  	
  0.07

  	
   

  
	
  Profit per gallon (excl. delivery)

  	
   

  	
  $

  	
  0.17

  	
   

  	
  $

  	
  0.17

  	
   

  	
  $

  	
  0.19

  	
   

  	
  $

  	
  0.23

  	
   

  	
  $

  	
  0.25

  	
   

  	
  $

  	
  0.27

  	
   

  
	
  Profit per gallon (incl. delivery)

  	
   

  	
  $

  	
  0.10

  	
   

  	
  $

  	
  0.10

  	
   

  	
  $

  	
  0.12

  	
   

  	
  $

  	
  0.16

  	
   

  	
  $

  	
  0.18

  	
   

  	
  $

  	
  0.20

  	
   

  

 

Note:

Differences
due to rounding.

 

 

Exhibit 5

Apollo LNG, Inc.

Forecast

 

	
   

  	
   

  	
  Remaining

  	
   

  	
  Projected

  	
   

  
	
   

  	
   

  	
  3 months

  	
   

  	
  December 31,

  	
   

  
	
  (in thousands of $ unless otherwise noted)

  	
   

  	
  2006

  	
   

  	
  2007

  	
   

  	
  2008

  	
   

  	
  2009

  	
   

  	
  2010

  	
   

  	
  2011

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total revenue, net

  	
   

  	
  3,868.6

  	
   

  	
  16,481.2

  	
   

  	
  20,217.6

  	
   

  	
  26,330.2

  	
   

  	
  31,854.3

  	
   

  	
  36,785.7

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total cost of goods sold

  	
   

  	
  3,250.8

  	
   

  	
  13,743.9

  	
   

  	
  16,565.9

  	
   

  	
  20,914.2

  	
   

  	
  25,140.1

  	
   

  	
  28,568.2

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gross profit

  	
   

  	
  617.8

  	
   

  	
  2,737.3

  	
   

  	
  3,651.7

  	
   

  	
  5,416.0

  	
   

  	
  6,714.2

  	
   

  	
  8,217.5

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total operating expenses

  	
   

  	
  1,404.4

  	
   

  	
  4,017.5

  	
   

  	
  2,812.3

  	
   

  	
  2,952.9

  	
   

  	
  3,100.5

  	
   

  	
  3,255.5

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Invested pretax capital income

  	
   

  	
  (786.6

  	
  )

  	
  (1,280.2

  	
  )

  	
  839.5

  	
   

  	
  2,463.2

  	
   

  	
  3,613.7

  	
   

  	
  4,961.9

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Income tax expense

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  432.5

  	
   

  	
  1,264.8

  	
   

  	
  1,736.7

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Invested capital income

  	
   

  	
  (786.6

  	
  )

  	
  (1,280.2

  	
  )

  	
  839.5

  	
   

  	
  2,030.7

  	
   

  	
  2,348.9

  	
   

  	
  3,225.3

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net operating loss tax benefit:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NOL available

  	
   

  	
  0.0

  	
   

  	
  786.6

  	
   

  	
  2,066.8

  	
   

  	
  1,227.4

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
  NOL applied (accrued)

  	
   

  	
  (786.6

  	
  )

  	
  (1,280.2

  	
  )

  	
  839.5

  	
   

  	
  1,227.4

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
  NOL remaining

  	
   

  	
  786.6

  	
   

  	
  2,066.8

  	
   

  	
  1,227.4

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Additional items:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EBITDA

  	
   

  	
  (414.6

  	
  )

  	
  207.8

  	
   

  	
  2,327.5

  	
   

  	
  3,951.2

  	
   

  	
  5,524.9

  	
   

  	
  7,169.1

  	
   

  
	
  EBIT

  	
   

  	
  (786.6

  	
  )

  	
  (1,280.2

  	
  )

  	
  839.5

  	
   

  	
  2,463.2

  	
   

  	
  3,613.7

  	
   

  	
  4,961.9

  	
   

  
	
  Depreciation and amortization

  	
   

  	
  372.0

  	
   

  	
  1,488.0

  	
   

  	
  1,488.0

  	
   

  	
  1,488.0

  	
   

  	
  1,911.3

  	
   

  	
  2,207.1

  	
   

  
	
  Capital expenditures

  	
   

  	
  62.5

  	
   

  	
  250.0

  	
   

  	
  250.0

  	
   

  	
  250.0

  	
   

  	
  250.0

  	
   

  	
  250.0

  	
   

  
	
  Working capital excluding cash and debt

  	
   

  	
  464.2

  	
   

  	
  494.4

  	
   

  	
  606.5

  	
   

  	
  789.9

  	
   

  	
  955.6

  	
   

  	
  1,103.6

  	
   

  
	
  Decrease (increase) in net working capital

  	
   

  	
  3,196.4

  	
   

  	
  (30.2

  	
  )

  	
  (112.1

  	
  )

  	
  (183.4

  	
  )

  	
  (165.7

  	
  )

  	
  (147.9

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Assumptions:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Revenue growth

  	
   

  	
  NMF

  	
   

  	
  N/A

  	
   

  	
  22.7

  	
  %

  	
  30.2

  	
  %

  	
  21.0

  	
  %

  	
  15.5

  	
  %

  
	
  Gross margin

  	
   

  	
  16.0

  	
  %

  	
  16.6

  	
  %

  	
  18.1

  	
  %

  	
  20.6

  	
  %

  	
  21.1

  	
  %

  	
  22.3

  	
  %

  
	
  Operating expenses (% of revenue)

  	
   

  	
  36.3

  	
  %

  	
  24.4

  	
  %

  	
  13.9

  	
  %

  	
  11.2

  	
  %

  	
  9.7

  	
  %

  	
  8.9

  	
  %

  
	
  Tax rate

  	
   

  	
  35.0

  	
  %

  	
  35.0

  	
  %

  	
  35.0

  	
  %

  	
  35.0

  	
  %

  	
  35.0

  	
  %

  	
  35.0

  	
  %

  
	
  Depreciation & amortization (% of
  revenue)

  	
   

  	
  9.6

  	
  %

  	
  9.0

  	
  %

  	
  7.4

  	
  %

  	
  5.7

  	
  %

  	
  6.0

  	
  %

  	
  6.0

  	
  %

  
	
  Capital expenditures (% of depreciation)

  	
   

  	
  1.6

  	
  %

  	
  1.5

  	
  %

  	
  1.2

  	
  %

  	
  0.9

  	
  %

  	
  0.8

  	
  %

  	
  0.7

  	
  %

  
	
  Net working capital (% of revenue)

  	
   

  	
  3.0

  	
  %

  	
  3.0

  	
  %

  	
  3.0

  	
  %

  	
  3.0

  	
  %

  	
  3.0

  	
  %

  	
  3.0

  	
  %

  

 

 

Exhibit 6

Apollo LNG, Inc.

Multiples Calculation

 

Ticker
Definitions:

AOOR = Apollo Resources
International

EBOF = Earth Biofuels Inc.

EPG = Environmental Power
Corp.

FSYS = Fuel Systems
Solutions, Inc.

GPRE = Green Plains Renewable
Energy Inc.

PEIX = Pacific Ethanol, Inc.

RTK = Rentech, Inc.

VSE = Verasun Energy, Corp.

XNL = Xethanol Corporation

 

Valuation
Date     Sep. 30, 2006

(millions
except per share data)

 

	
  Public company

  	
   

  	
  AOOR

  	
   

  	
  EBOF

  	
   

  	
  EPG

  	
   

  	
  FSYS

  	
   

  	
  GPRE

  	
   

  	
  PEIX

  	
   

  	
  RTK

  	
   

  	
  VSE

  	
   

  	
  XNL

  	
   

  	
  High

  	
   

  	
  Low

  	
   

  	
  Average

  	
   

  	
  Median

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shares
  outstanding

  	
   

  	
  201.8

  	
   

  	
  215.0

  	
   

  	
  9.7

  	
   

  	
  15.0

  	
   

  	
  4.4

  	
   

  	
  37.2

  	
   

  	
  141.4

  	
   

  	
  75.2

  	
   

  	
  27.3

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Price per share

  	
   

  	
  $

  	
  0.23

  	
   

  	
  $

  	
  2.34

  	
   

  	
  $

  	
  4.49

  	
   

  	
  $

  	
  12.72

  	
   

  	
  $

  	
  18.77

  	
   

  	
  $

  	
  14.04

  	
   

  	
  $

  	
  4.63

  	
   

  	
  $

  	
  16.05

  	
   

  	
  $

  	
  3.03

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MVE

  	
   

  	
  $

  	
  46.4

  	
   

  	
  $

  	
  503.2

  	
   

  	
  $

  	
  43.3

  	
   

  	
  $

  	
  190.9

  	
   

  	
  $

  	
  82.6

  	
   

  	
  $

  	
  522.6

  	
   

  	
  $

  	
  654.7

  	
   

  	
  $

  	
  1,207.3

  	
   

  	
  $

  	
  82.7

  	
   

  	
  $

  	
  1,207.3

  	
   

  	
  $

  	
  43.3

  	
   

  	
  $

  	
  370.4

  	
   

  	
  $

  	
  190.9

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Preferred stock

  	
   

  	
  25.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Minority interest

  	
   

  	
  0.2

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  3.1

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total interest
  bearing debt

  	
   

  	
  $

  	
  22.3

  	
   

  	
  $

  	
  3.6

  	
   

  	
  $

  	
  5.9

  	
   

  	
  $

  	
  12.5

  	
   

  	
  $

  	
  0.4

  	
   

  	
  $

  	
  2.1

  	
   

  	
  $

  	
  68.9

  	
   

  	
  $

  	
  208.8

  	
   

  	
  $

  	
  0.3

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MVIC

  	
   

  	
  $

  	
  93.9

  	
   

  	
  $

  	
  506.8

  	
   

  	
  $

  	
  49.2

  	
   

  	
  $

  	
  206.5

  	
   

  	
  $

  	
  83.0

  	
   

  	
  $

  	
  524.8

  	
   

  	
  $

  	
  723.7

  	
   

  	
  $

  	
  1,416.2

  	
   

  	
  $

  	
  82.9

  	
   

  	
  $

  	
  1,416.2

  	
   

  	
  $

  	
  49.2

  	
   

  	
  $

  	
  409.7

  	
   

  	
  $

  	
  206.5

  	
   

  
	
  Cash, as reported

  	
   

  	
  $

  	
  0.9

  	
   

  	
  $

  	
  0.4

  	
   

  	
  $

  	
  9.6

  	
   

  	
  $

  	
  17.6

  	
   

  	
  $

  	
  25.6

  	
   

  	
  $

  	
  140.0

  	
   

  	
  $

  	
  65.6

  	
   

  	
  $

  	
  312.9

  	
   

  	
  $

  	
  25.9

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MVIC - cash-free

  	
   

  	
  $

  	
  93.1

  	
   

  	
  $

  	
  506.4

  	
   

  	
  $

  	
  39.7

  	
   

  	
  $

  	
  188.9

  	
   

  	
  $

  	
  57.4

  	
   

  	
  $

  	
  384.8

  	
   

  	
  $

  	
  658.0

  	
   

  	
  $

  	
  1,103.2

  	
   

  	
  $

  	
  57.0

  	
   

  	
  $

  	
  1,103.2

  	
   

  	
  $

  	
  39.7

  	
   

  	
  $

  	
  343.2

  	
   

  	
  $

  	
  188.9

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Debt-to-MVIC

  	
   

  	
  24.0

  	
  %

  	
  0.7

  	
  %

  	
  12.0

  	
  %

  	
  7.6

  	
  %

  	
  0.5

  	
  %

  	
  0.4

  	
  %

  	
  9.5

  	
  %

  	
  14.7

  	
  %

  	
  0.3

  	
  %

  	
  24.0

  	
  %

  	
  0.3

  	
  %

  	
  7.7

  	
  %

  	
  7.6

  	
  %

  
	
  Equity-to-MVIC

  	
   

  	
  76.0

  	
  %

  	
  99.3

  	
  %

  	
  88.0

  	
  %

  	
  92.4

  	
  %

  	
  99.5

  	
  %

  	
  99.6

  	
  %

  	
  90.5

  	
  %

  	
  85.3

  	
  %

  	
  99.7

  	
  %

  	
  99.7

  	
  %

  	
  76.0

  	
  %

  	
  92.3

  	
  %

  	
  92.4

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Earnings Streams

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Revenue

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fiscal 2006

  	
   

  	
  N/A

  	
   

  	
  13.3

  	
   

  	
  55.6

  	
   

  	
  203.1

  	
   

  	
  0.0

  	
   

  	
  194.5

  	
   

  	
  115.4

  	
   

  	
  555.0

  	
   

  	
  N/A

  	
   

  	
  555.0

  	
   

  	
  0.0

  	
   

  	
  162.4

  	
   

  	
  115.4

  	
   

  
	
  Fiscal 2007

  	
   

  	
  N/A

  	
   

  	
  27.8

  	
   

  	
  63.4

  	
   

  	
  230.0

  	
   

  	
  15.5

  	
   

  	
  375.9

  	
   

  	
  135.8

  	
   

  	
  648.0

  	
   

  	
  N/A

  	
   

  	
  648.0

  	
   

  	
  15.5

  	
   

  	
  213.8

  	
   

  	
  135.8

  	
   

  
	
  Fiscal 2008

  	
   

  	
  N/A

  	
   

  	
  42.1

  	
   

  	
  92.4

  	
   

  	
  N/A

  	
   

  	
  232.5

  	
   

  	
  767.1

  	
   

  	
  N/A

  	
   

  	
  1,134.7

  	
   

  	
  N/A

  	
   

  	
  1,134.7

  	
   

  	
  42.1

  	
   

  	
  453.8

  	
   

  	
  232.5

  	
   

  
	
  Fiscal 2009

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  1,260.0

  	
   

  	
  N/A

  	
   

  	
  1,260.0

  	
   

  	
  1,260.0

  	
   

  	
  1,260.0

  	
   

  	
  1,260.0

  	
   

  
	
  Fiscal 2010

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  1,116.4

  	
   

  	
  N/A

  	
   

  	
  1,116.4

  	
   

  	
  1,116.4

  	
   

  	
  1,116.4

  	
   

  	
  1,116.4

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EBITDA

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fiscal 2006

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  (6.8

  	
  )

  	
  23.5

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  3.1

  	
   

  	
  199.5

  	
   

  	
  N/A

  	
   

  	
  199.5

  	
   

  	
  (6.8

  	
  )

  	
  54.9

  	
   

  	
  13.3

  	
   

  
	
  Fiscal 2007

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  (4.9

  	
  )

  	
  33.3

  	
   

  	
  N/A

  	
   

  	
  46.9

  	
   

  	
  12.5

  	
   

  	
  201.0

  	
   

  	
  N/A

  	
   

  	
  201.0

  	
   

  	
  (4.9

  	
  )

  	
  57.8

  	
   

  	
  33.3

  	
   

  
	
  Fiscal 2008

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  15.9

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  131.5

  	
   

  	
  N/A

  	
   

  	
  299.3

  	
   

  	
  N/A

  	
   

  	
  299.3

  	
   

  	
  15.9

  	
   

  	
  148.9

  	
   

  	
  131.5

  	
   

  
	
  Fiscal 2009

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  321.3

  	
   

  	
  N/A

  	
   

  	
  321.3

  	
   

  	
  321.3

  	
   

  	
  321.3

  	
   

  	
  321.3

  	
   

  
	
  Fiscal 2010

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  59.7

  	
   

  	
  N/A

  	
   

  	
  59.7

  	
   

  	
  59.7

  	
   

  	
  59.7

  	
   

  	
  59.7

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Earnings per
  share

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fiscal 2006

  	
   

  	
  N/A

  	
   

  	
  (0.1

  	
  )

  	
  (0.8

  	
  )

  	
  0.7

  	
   

  	
  (0.6

  	
  )

  	
  (0.1

  	
  )

  	
  (0.0

  	
  )

  	
  1.5

  	
   

  	
  N/A

  	
   

  	
  1.5

  	
   

  	
  (0.8

  	
  )

  	
  0.1

  	
   

  	
  (0.1

  	
  )

  
	
  Fiscal 2007

  	
   

  	
  N/A

  	
   

  	
  (0.0

  	
  )

  	
  (0.9

  	
  )

  	
  1.0

  	
   

  	
  6.8

  	
   

  	
  0.4

  	
   

  	
  0.0

  	
   

  	
  1.3

  	
   

  	
  N/A

  	
   

  	
  6.8

  	
   

  	
  (0.9

  	
  )

  	
  1.2

  	
   

  	
  0.4

  	
   

  
	
  Fiscal 2008

  	
   

  	
  N/A

  	
   

  	
  (0.1

  	
  )

  	
  0.0

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  1.4

  	
   

  	
  N/A

  	
   

  	
  2.0

  	
   

  	
  N/A

  	
   

  	
  2.0

  	
   

  	
  (0.1

  	
  )

  	
  0.8

  	
   

  	
  0.7

  	
   

  
	
  Fiscal 2009

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  1.4

  	
   

  	
  N/A

  	
   

  	
  1.4

  	
   

  	
  1.4

  	
   

  	
  1.4

  	
   

  	
  1.4

  	
   

  
	
  Fiscal 2010

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  0.8

  	
   

  	
  N/A

  	
   

  	
  0.8

  	
   

  	
  0.8

  	
   

  	
  0.8

  	
   

  	
  0.8

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Implied Multiples

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MVIC-to-revenue
  (cash-free)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fiscal 2006

  	
   

  	
  N/A

  	
   

  	
  38.1

  	
  x

  	
  0.7

  	
  x

  	
  0.9

  	
  x

  	
  N/A

  	
   

  	
  2.0

  	
  x

  	
  5.7

  	
  x

  	
  2.0

  	
  x

  	
  N/A

  	
   

  	
  38.1

  	
  x

  	
  0.7

  	
  x

  	
  8.2

  	
  x

  	
  2.0

  	
  x

  
	
  Fiscal 2007

  	
   

  	
  N/A

  	
   

  	
  18.2

  	
  x

  	
  0.6

  	
  x

  	
  0.8

  	
  x

  	
  3.7

  	
  x

  	
  1.0

  	
  x

  	
  4.8

  	
  x

  	
  1.7

  	
  x

  	
  N/A

  	
   

  	
  18.2

  	
  x

  	
  0.6

  	
  x

  	
  4.4

  	
  x

  	
  1.7

  	
  x

  
	
  Fiscal 2008

  	
   

  	
  N/A

  	
   

  	
  12.0

  	
  x

  	
  0.4

  	
  x

  	
  N/A

  	
   

  	
  0.2

  	
  x

  	
  0.5

  	
  x

  	
  N/A

  	
   

  	
  1.0

  	
  x

  	
  N/A

  	
   

  	
  12.0

  	
  x

  	
  0.2

  	
  x

  	
  2.8

  	
  x

  	
  0.5

  	
  x

  
	
  Fiscal 2009

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  0.9

  	
  x

  	
  N/A

  	
   

  	
  0.9

  	
  x

  	
  0.9

  	
  x

  	
  0.9

  	
  x

  	
  0.9

  	
  x

  
	
  Fiscal 2010

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  1.0

  	
  x

  	
  N/A

  	
   

  	
  1.0

  	
  x

  	
  1.0

  	
  x

  	
  1.0

  	
  x

  	
  1.0

  	
  x

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MVIC-to-EBITDA
  (cash free)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fiscal 2006

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  8.0

  	
  x

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  212.3

  	
  x

  	
  5.5

  	
  x

  	
  N/A

  	
   

  	
  212.3

  	
  x

  	
  5.5

  	
  x

  	
  75.3

  	
  x

  	
  8.0

  	
  x

  
	
  Fiscal 2007

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  5.7

  	
  x

  	
  N/A

  	
   

  	
  8.2

  	
  x

  	
  52.6

  	
  x

  	
  5.5

  	
  x

  	
  N/A

  	
   

  	
  52.6

  	
  x

  	
  5.5

  	
  x

  	
  18.0

  	
  x

  	
  6.9

  	
  x

  
	
  Fiscal 2008

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  2.5

  	
  x

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  2.9

  	
  x

  	
  N/A

  	
   

  	
  3.7

  	
  x

  	
  N/A

  	
   

  	
  3.7

  	
  x

  	
  2.5

  	
  x

  	
  3.0

  	
  x

  	
  2.9

  	
  x

  
	
  Fiscal 2009

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  3.4

  	
  x

  	
  N/A

  	
   

  	
  3.4

  	
  x

  	
  3.4

  	
  x

  	
  3.4

  	
  x

  	
  3.4

  	
  x

  
	
  Fiscal 2010

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  18.5

  	
  x

  	
  N/A

  	
   

  	
  18.5

  	
  x

  	
  18.5

  	
  x

  	
  18.5

  	
  x

  	
  18.5

  	
  x

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Price-to-earnings

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fiscal 2006

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  287.1

  	
  x

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  789.6

  	
  x

  	
  N/A

  	
   

  	
  789.6

  	
  x

  	
  287.1

  	
  x

  	
  538.4

  	
  x

  	
  538.4

  	
  x

  
	
  Fiscal 2007

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  191.9

  	
  x

  	
  12.1

  	
  x

  	
  1179.7

  	
  x

  	
  21824.0

  	
  x

  	
  957.5

  	
  x

  	
  N/A

  	
   

  	
  21824.0

  	
  x

  	
  12.1

  	
  x

  	
  4833.0

  	
  x

  	
  957.5

  	
  x

  
	
  Fiscal 2008

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  372.5

  	
  x

  	
  N/A

  	
   

  	
  611.0

  	
  x

  	
  N/A

  	
   

  	
  611.0

  	
  x

  	
  372.5

  	
  x

  	
  491.8

  	
  x

  	
  491.8

  	
  x

  
	
  Fiscal 2009

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  850.2

  	
  x

  	
  N/A

  	
   

  	
  850.2

  	
  x

  	
  850.2

  	
  x

  	
  850.2

  	
  x

  	
  850.2

  	
  x

  
	
  Fiscal 2010

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  1509.2

  	
  x

  	
  N/A

  	
   

  	
  1509.2

  	
  x

  	
  1509.2

  	
  x

  	
  1509.2

  	
  x

  	
  1509.2

  	
  x

  

 

Notes:

MVE = Market value of equity.

MVIC = Market value of
invested capital.

 

 

Exhibit 7

Apollo LNG, Inc.

Multiples Calculation - Terminal Multiple

 

Ticker
Definitions:

ALJ = Alon USA Energy Inc.

DK = Delek US Holdings Inc.

HOC = Holly Corp.

LYO = Lyondell Chemical Co.

SUN = Sunoco Inc.

TSO = Tesoro Corp.

VLO = Valero Energy Corp.

WNR = Western Refining Inc.

XTXI = Crosstex Energy Inc.

 

Valuation
Date     Sep. 30, 2006

(millions
except per share data)

 

	
  Public company

  	
   

  	
  ALJ

  	
   

  	
  DK

  	
   

  	
  HOC

  	
   

  	
  LYO

  	
   

  	
  SUN

  	
   

  	
  TSO

  	
   

  	
  VLO

  	
   

  	
  WNR

  	
   

  	
  XTXI

  	
   

  	
  High

  	
   

  	
  Low

  	
   

  	
  Average

  	
   

  	
  Median

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shares
  outstanding

  	
   

  	
  46.8

  	
   

  	
  50.9

  	
   

  	
  57.9

  	
   

  	
  247.9

  	
   

  	
  130.4

  	
   

  	
  68.2

  	
   

  	
  612.9

  	
   

  	
  68.4

  	
   

  	
  15.3

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Price per share

  	
   

  	
  $

  	
  29.49

  	
   

  	
  $

  	
  18.50

  	
   

  	
  $

  	
  43.33

  	
   

  	
  $

  	
  25.37

  	
   

  	
  $

  	
  62.19

  	
   

  	
  $

  	
  57.98

  	
   

  	
  $

  	
  51.47

  	
   

  	
  $

  	
  23.24

  	
   

  	
  $

  	
  89.57

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MVE

  	
   

  	
  $

  	
  1,380.3

  	
   

  	
  $

  	
  941.5

  	
   

  	
  $

  	
  2,506.9

  	
   

  	
  $

  	
  6,288.1

  	
   

  	
  $

  	
  8,110.1

  	
   

  	
  $

  	
  3,957.1

  	
   

  	
  $

  	
  31,544.1

  	
   

  	
  $

  	
  1,589.2

  	
   

  	
  $

  	
  1,371.7

  	
   

  	
  $

  	
  31,544.1

  	
   

  	
  $

  	
  941.5

  	
   

  	
  $

  	
  6,409.9

  	
   

  	
  $

  	
  2,506.9

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Preferred stock

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  53.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Minority interest

  	
   

  	
  12.6

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  167.0

  	
   

  	
  745.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  411.2

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total interest
  bearing debt

  	
   

  	
  $

  	
  31.2

  	
   

  	
  $

  	
  212.9

  	
   

  	
  $

  	
  0.0

  	
   

  	
  $

  	
  5,836.0

  	
   

  	
  $

  	
  1,438.0

  	
   

  	
  $

  	
  1,042.0

  	
   

  	
  $

  	
  5,188.0

  	
   

  	
  $

  	
  0.0

  	
   

  	
  $

  	
  818.8

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MVIC

  	
   

  	
  $

  	
  1,424.0

  	
   

  	
  $

  	
  1,154.4

  	
   

  	
  $

  	
  2,506.9

  	
   

  	
  $

  	
  12,291.1

  	
   

  	
  $

  	
  10,293.1

  	
   

  	
  $

  	
  4,999.1

  	
   

  	
  $

  	
  36,785.1

  	
   

  	
  $

  	
  1,589.2

  	
   

  	
  $

  	
  2,601.8

  	
   

  	
  $

  	
  36,785.1

  	
   

  	
  $

  	
  1,154.4

  	
   

  	
  $

  	
  8,182.7

  	
   

  	
  $

  	
  2,601.8

  	
   

  
	
  Cash, as reported

  	
   

  	
  $

  	
  204.3

  	
   

  	
  $

  	
  95.0

  	
   

  	
  $

  	
  117.9

  	
   

  	
  $

  	
  320.0

  	
   

  	
  $

  	
  600.0

  	
   

  	
  $

  	
  620.0

  	
   

  	
  $

  	
  937.0

  	
   

  	
  $

  	
  183.5

  	
   

  	
  $

  	
  9.5

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MVIC - cash-free

  	
   

  	
  $

  	
  1,219.7

  	
   

  	
  $

  	
  1,059.3

  	
   

  	
  $

  	
  2,389.1

  	
   

  	
  $

  	
  11,971.1

  	
   

  	
  $

  	
  9,693.1

  	
   

  	
  $

  	
  4,379.1

  	
   

  	
  $

  	
  35,848.1

  	
   

  	
  $

  	
  1,405.7

  	
   

  	
  $

  	
  2,592.3

  	
   

  	
  $

  	
  35,848.1

  	
   

  	
  $

  	
  1,059.3

  	
   

  	
  $

  	
  7,839.7

  	
   

  	
  $

  	
  2,592.3

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Debt-to-MVIC

  	
   

  	
  3.1

  	
  %

  	
  18.4

  	
  %

  	
  0.0

  	
  %

  	
  48.8

  	
  %

  	
  21.2

  	
  %

  	
  20.8

  	
  %

  	
  14.1

  	
  %

  	
  0.0

  	
  %

  	
  47.3

  	
  %

  	
  48.8

  	
  %

  	
  0.0

  	
  %

  	
  19.3

  	
  %

  	
  18.4

  	
  %

  
	
  Equity-to-MVIC

  	
   

  	
  96.9

  	
  %

  	
  81.6

  	
  %

  	
  100.0

  	
  %

  	
  51.2

  	
  %

  	
  78.8

  	
  %

  	
  79.2

  	
  %

  	
  85.9

  	
  %

  	
  100.0

  	
  %

  	
  52.7

  	
  %

  	
  100.0

  	
  %

  	
  51.2

  	
  %

  	
  80.7

  	
  %

  	
  81.6

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Earnings Streams

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Revenue (latest
  twelve months)

  	
   

  	
  2,587.1

  	
   

  	
  2,822.4

  	
   

  	
  3,771.8

  	
   

  	
  19,619.0

  	
   

  	
  35,126.0

  	
   

  	
  18,075.0

  	
   

  	
  96,099.0

  	
   

  	
  3,959.5

  	
   

  	
  3,412.1

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EBITDA (latest
  twelve months)

  	
   

  	
  221.1

  	
   

  	
  211.8

  	
   

  	
  380.7

  	
   

  	
  1,993.0

  	
   

  	
  2,395.0

  	
   

  	
  1,484.0

  	
   

  	
  8,630.0

  	
   

  	
  290.6

  	
   

  	
  91.7

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Implied Multiples

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MVIC-to-revenue
  (cash-free)

  	
   

  	
  0.5

  	
  x

  	
  0.4

  	
  x

  	
  0.6

  	
  x

  	
  0.6

  	
  x

  	
  0.3

  	
  x

  	
  0.2

  	
  x

  	
  0.4

  	
  x

  	
  0.4

  	
  x

  	
  0.8

  	
  x

  	
  0.8

  	
  x

  	
  0.2

  	
  x

  	
  0.5

  	
  x

  	
  0.4

  	
  x

  
	
  MVIC-to-EBITDA
  (cash free)

  	
   

  	
  5.5

  	
  x

  	
  5.0

  	
  x

  	
  6.3

  	
  x

  	
  6.0

  	
  x

  	
  4.0

  	
  x

  	
  3.0

  	
  x

  	
  4.2

  	
  x

  	
  4.8

  	
  x

  	
  28.3

  	
  x

  	
  28.3

  	
  x

  	
  3.0

  	
  x

  	
  7.5

  	
  x

  	
  5.0

  	
  x

  

 

Notes:

MVE = Market value of equity.

MVIC = Market value of
invested capital.

 

 

Exhibit 8

Apollo LNG, Inc.

Historical Multiples Analysis

 

	
  Ticker
  Definitions:

  
	
  ALJ = Alon USA Energy Inc.

  
	
  DK = Delek US Holdings Inc.

  
	
  HOC = Holly Corp.

  
	
  LYO = Lyondell Chemical Co.

  
	
  SUN = Sunoco Inc.

  
	
  TSO = Tesoro Corp.

  
	
  VLO = Valero Energy Corp.

  
	
  WNR = Western Refining Inc.

  
	
  XTXI = Crosstex Energy Inc.

  

 

	
   

  	
   

  
	
  Ticker

  	
  ALJ

  

 

	
  Valuation Date

  (millions except per share data)

  	
   

  	
   

  	
   

  	
  09/30/06

  	
   

  	
  06/30/06

  	
   

  	
  03/31/06

  	
   

  	
  12/31/05

  	
   

  	
  09/30/05

  	
   

  	
  06/30/05

  	
   

  	
  03/31/05

  	
   

  	
  12/31/04

  	
   

  	
  09/30/04

  	
   

  	
  06/30/04

  	
   

  	
  03/31/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Implied Multiples

  	
   

  	
  Average

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MVIC-to-revenue
  (cash-free)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ALJ

  	
   

  	
  0.4

  	
  x

  	
  0.5

  	
  x

  	
  0.5

  	
  x

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  	
  0.4

  	
  x

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DK

  	
   

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HOC

  	
   

  	
  0.4

  	
  x

  	
  0.6

  	
  x

  	
  0.7

  	
  x

  	
  0.6

  	
  x

  	
  0.5

  	
  x

  	
  0.6

  	
  x

  	
  0.6

  	
  x

  	
  0.6

  	
  x

  	
  0.4

  	
  x

  	
  0.4

  	
  x

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  
	
  LYO

  	
   

  	
  1.4

  	
  x

  	
  0.6

  	
  x

  	
  0.6

  	
  x

  	
  0.6

  	
  x

  	
  0.6

  	
  x

  	
  0.8

  	
  x

  	
  1.0

  	
  x

  	
  1.5

  	
  x

  	
  2.0

  	
  x

  	
  1.6

  	
  x

  	
  1.6

  	
  x

  	
  1.6

  	
  x

  
	
  SUN

  	
   

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  	
  0.4

  	
  x

  	
  0.4

  	
  x

  	
  0.4

  	
  x

  	
  0.4

  	
  x

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  	
  0.4

  	
  x

  	
  0.3

  	
  x

  	
  0.4

  	
  x

  
	
  TSO

  	
   

  	
  0.3

  	
  x

  	
  0.2

  	
  x

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  
	
  VLO

  	
   

  	
  0.4

  	
  x

  	
  0.4

  	
  x

  	
  0.5

  	
  x

  	
  0.5

  	
  x

  	
  0.5

  	
  x

  	
  0.5

  	
  x

  	
  0.4

  	
  x

  	
  0.4

  	
  x

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  
	
  WNR

  	
   

  	
  0.4

  	
  x

  	
  0.4

  	
  x

  	
  0.3

  	
  x

  	
  0.4

  	
  x

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  XTXI

  	
   

  	
  0.5

  	
  x

  	
  0.8

  	
  x

  	
  0.7

  	
  x

  	
  0.6

  	
  x

  	
  0.5

  	
  x

  	
  0.4

  	
  x

  	
  0.4

  	
  x

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  	
  0.4

  	
  x

  	
  0.5

  	
  x

  	
  0.5

  	
  x

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Average excluding
  LYO & XTXI

  	
   

  	
  0.5

  	
  x

  	
  0.4

  	
  x

  	
  0.4

  	
  x

  	
  0.4

  	
  x

  	
  0.4

  	
  x

  	
  0.5

  	
  x

  	
  0.4

  	
  x

  	
  0.4

  	
  x

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MVIC-to-EBITDA
  (cash free)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ALJ

  	
   

  	
  5.3

  	
  x

  	
  5.5

  	
  x

  	
  5.5

  	
  x

  	
  4.3

  	
  x

  	
  3.8

  	
  x

  	
  7.2

  	
  x

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DK

  	
   

  	
  4.1

  	
  x

  	
  4.5

  	
  x

  	
  3.7

  	
  x

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HOC

  	
   

  	
  5.0

  	
  x

  	
  6.0

  	
  x

  	
  6.7

  	
  x

  	
  5.9

  	
  x

  	
  4.7

  	
  x

  	
  6.2

  	
  x

  	
  8.2

  	
  x

  	
  7.3

  	
  x

  	
  4.8

  	
  x

  	
  4.9

  	
  x

  	
  3.1

  	
  x

  	
  5.0

  	
  x

  
	
  LYO

  	
   

  	
  17.9

  	
  x

  	
  6.0

  	
  x

  	
  5.6

  	
  x

  	
  5.4

  	
  x

  	
  5.8

  	
  x

  	
  7.3

  	
  x

  	
  7.3

  	
  x

  	
  9.6

  	
  x

  	
  14.4

  	
  x

  	
  13.9

  	
  x

  	
  16.1

  	
  x

  	
  21.2

  	
  x

  
	
  SUN

  	
   

  	
  6.3

  	
  x

  	
  4.0

  	
  x

  	
  4.5

  	
  x

  	
  5.8

  	
  x

  	
  5.5

  	
  x

  	
  6.2

  	
  x

  	
  6.0

  	
  x

  	
  5.6

  	
  x

  	
  4.9

  	
  x

  	
  5.7

  	
  x

  	
  5.1

  	
  x

  	
  6.3

  	
  x

  
	
  TSO

  	
   

  	
  7.2

  	
  x

  	
  3.0

  	
  x

  	
  3.7

  	
  x

  	
  4.3

  	
  x

  	
  3.9

  	
  x

  	
  4.9

  	
  x

  	
  5.2

  	
  x

  	
  4.2

  	
  x

  	
  3.5

  	
  x

  	
  3.3

  	
  x

  	
  3.3

  	
  x

  	
  4.8

  	
  x

  
	
  VLO

  	
   

  	
  6.2

  	
  x

  	
  4.2

  	
  x

  	
  5.2

  	
  x

  	
  6.0

  	
  x

  	
  5.8

  	
  x

  	
  6.1

  	
  x

  	
  5.3

  	
  x

  	
  5.4

  	
  x

  	
  4.2

  	
  x

  	
  4.6

  	
  x

  	
  5.1

  	
  x

  	
  6.6

  	
  x

  
	
  WNR

  	
   

  	
  5.1

  	
  x

  	
  4.8

  	
  x

  	
  4.4

  	
  x

  	
  6.1

  	
  x

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  XTXI

  	
   

  	
  19.0

  	
  x

  	
  28.3

  	
  x

  	
  26.5

  	
  x

  	
  24.0

  	
  x

  	
  25.3

  	
  x

  	
  21.9

  	
  x

  	
  14.3

  	
  x

  	
  13.3

  	
  x

  	
  12.4

  	
  x

  	
  13.7

  	
  x

  	
  14.1

  	
  x

  	
  15.4

  	
  x

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Average excluding
  LYO & XTXI

  	
   

  	
  6.2

  	
  x

  	
  4.6

  	
  x

  	
  4.8

  	
  x

  	
  5.4

  	
  x

  	
  4.7

  	
  x

  	
  6.1

  	
  x

  	
  6.2

  	
  x

  	
  5.6

  	
  x

  	
  4.4

  	
  x

  	
  4.6

  	
  x

  	
  4.2

  	
  x

  	
  5.7

  	
  x

  

 

	
  Valuation Date

  (millions except per share data)

  	
   

  	
   

  	
   

  	
  12/31/03

  	
   

  	
  09/30/03

  	
   

  	
  06/30/03

  	
   

  	
  03/31/03

  	
   

  	
  12/31/02

  	
   

  	
  09/30/02

  	
   

  	
  06/30/02

  	
   

  	
  03/31/02

  	
   

  	
  12/31/01

  	
   

  	
  09/30/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Implied Multiples

  	
   

  	
  Average

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MVIC-to-revenue
  (cash-free)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ALJ

  	
   

  	
  0.4

  	
  x

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DK

  	
   

  	
  0.3

  	
  x

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HOC

  	
   

  	
  0.4

  	
  x

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  	
  0.4

  	
  x

  	
  0.4

  	
  x

  	
  0.3

  	
  x

  	
  0.2

  	
  x

  	
  0.2

  	
  x

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  	
  0.2

  	
  x

  
	
  LYO

  	
   

  	
  1.4

  	
  x

  	
  1.7

  	
  x

  	
  1.5

  	
  x

  	
  1.6

  	
  x

  	
  1.6

  	
  x

  	
  1.7

  	
  x

  	
  1.6

  	
  x

  	
  1.8

  	
  x

  	
  1.8

  	
  x

  	
  1.6

  	
  x

  	
  1.4

  	
  x

  
	
  SUN

  	
   

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  	
  0.4

  	
  x

  	
  0.4

  	
  x

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  
	
  TSO

  	
   

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  	
  0.4

  	
  x

  	
  0.5

  	
  x

  	
  0.4

  	
  x

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  
	
  VLO

  	
   

  	
  0.4

  	
  x

  	
  0.3

  	
  x

  	
  0.2

  	
  x

  	
  0.2

  	
  x

  	
  0.2

  	
  x

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  	
  0.5

  	
  x

  	
  0.6

  	
  x

  	
  0.4

  	
  x

  	
  0.2

  	
  x

  
	
  WNR

  	
   

  	
  0.4

  	
  x

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  XTXI

  	
   

  	
  0.5

  	
  x

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Average excluding
  LYO & XTXI

  	
   

  	
  0.5

  	
  x

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  	
  0.3

  	
  x

  	
  0.4

  	
  x

  	
  0.4

  	
  x

  	
  0.3

  	
  x

  	
  0.2

  	
  x

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MVIC-to-EBITDA
  (cash free)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ALJ

  	
   

  	
  5.3

  	
  x

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DK

  	
   

  	
  4.1

  	
  x

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HOC

  	
   

  	
  5.0

  	
  x

  	
  5.9

  	
  x

  	
  4.8

  	
  x

  	
  6.9

  	
  x

  	
  7.9

  	
  x

  	
  6.5

  	
  x

  	
  2.7

  	
  x

  	
  2.2

  	
  x

  	
  2.0

  	
  x

  	
  2.1

  	
  x

  	
  1.6

  	
  x

  
	
  LYO

  	
   

  	
  17.9

  	
  x

  	
  73.7

  	
  x

  	
  51.7

  	
  x

  	
  35.8

  	
  x

  	
  21.8

  	
  x

  	
  14.1

  	
  x

  	
  12.0

  	
  x

  	
  14.9

  	
  x

  	
  15.0

  	
  x

  	
  12.4

  	
  x

  	
  11.1

  	
  x

  
	
  SUN

  	
   

  	
  6.3

  	
  x

  	
  5.6

  	
  x

  	
  4.5

  	
  x

  	
  5.6

  	
  x

  	
  5.9

  	
  x

  	
  10.2

  	
  x

  	
  14.9

  	
  x

  	
  11.4

  	
  x

  	
  7.2

  	
  x

  	
  4.3

  	
  x

  	
  3.0

  	
  x

  
	
  TSO

  	
   

  	
  7.2

  	
  x

  	
  4.8

  	
  x

  	
  4.6

  	
  x

  	
  6.7

  	
  x

  	
  9.6

  	
  x

  	
  17.9

  	
  x

  	
  19.9

  	
  x

  	
  18.3

  	
  x

  	
  12.8

  	
  x

  	
  6.3

  	
  x

  	
  6.0

  	
  x

  
	
  VLO

  	
   

  	
  6.2

  	
  x

  	
  5.4

  	
  x

  	
  4.9

  	
  x

  	
  5.4

  	
  x

  	
  6.3

  	
  x

  	
  9.7

  	
  x

  	
  10.6

  	
  x

  	
  11.8

  	
  x

  	
  10.2

  	
  x

  	
  4.6

  	
  x

  	
  2.7

  	
  x

  
	
  WNR

  	
   

  	
  5.1

  	
  x

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  XTXI

  	
   

  	
  19.0

  	
  x

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Average excluding
  LYO & XTXI

  	
   

  	
  6.2

  	
  x

  	
  5.4

  	
  x

  	
  4.7

  	
  x

  	
  6.2

  	
  x

  	
  7.4

  	
  x

  	
  11.1

  	
  x

  	
  12.0

  	
  x

  	
  10.9

  	
  x

  	
  8.1

  	
  x

  	
  4.3

  	
  x

  	
  3.3

  	
  x

  

 

Notes:

MVE = Market value of equity.

MVIC = Market value of invested
capital.

 

 

Exhibit 9

Apollo LNG, Inc.

Discounted Cash Flow Analysis

 

	
   

  	
   

  	
  Remaining

  	
   

  	
  Projected

  	
   

  
	
   

  	
   

  	
  3 months

  	
   

  	
  December 31,

  	
   

  
	
  (in thousands of $ unless otherwise noted)

  	
   

  	
  2006

  	
   

  	
  2007

  	
   

  	
  2008

  	
   

  	
  2009

  	
   

  	
  2010

  	
   

  	
  2011

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total revenue

  	
   

  	
  3,868.6

  	
   

  	
  16,481.2

  	
   

  	
  20,217.6

  	
   

  	
  26,330.2

  	
   

  	
  31,854.3

  	
   

  	
  36,785.7

  	
   

  
	
  growth

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  22.7

  	
  %

  	
  30.2

  	
  %

  	
  21.0

  	
  %

  	
  15.5

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EBITDA

  	
   

  	
  (414.6

  	
  )

  	
  207.8

  	
   

  	
  2,327.5

  	
   

  	
  3,951.2

  	
   

  	
  5,524.9

  	
   

  	
  7,169.1

  	
   

  
	
  margin

  	
   

  	
  (10.7

  	
  )%

  	
  1.3

  	
  %

  	
  11.5

  	
  %

  	
  15.0

  	
  %

  	
  17.3

  	
  %

  	
  19.5

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Depreciation and amortization

  	
   

  	
  372.0

  	
   

  	
  1,488.0

  	
   

  	
  1,488.0

  	
   

  	
  1,488.0

  	
   

  	
  1,911.3

  	
   

  	
  2,207.1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EBIT

  	
   

  	
  (786.6

  	
  )

  	
  (1,280.2

  	
  )

  	
  839.5

  	
   

  	
  2,463.2

  	
   

  	
  3,613.7

  	
   

  	
  4,961.9

  	
   

  
	
  margin

  	
   

  	
  (20.3

  	
  )%

  	
  (7.8

  	
  )%

  	
  4.2

  	
  %

  	
  9.4

  	
  %

  	
  11.3

  	
  %

  	
  13.5

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Income tax expense

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  432.5

  	
   

  	
  1,264.8

  	
   

  	
  1,736.7

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Invested capital net income

  	
   

  	
  (786.6

  	
  )

  	
  (1,280.2

  	
  )

  	
  839.5

  	
   

  	
  2,030.7

  	
   

  	
  2,348.9

  	
   

  	
  3,225.3

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Adjustments to cash flow:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Depreciation and amortization

  	
   

  	
  372.0

  	
   

  	
  1,488.0

  	
   

  	
  1,488.0

  	
   

  	
  1,488.0

  	
   

  	
  1,911.3

  	
   

  	
  2,207.1

  	
   

  
	
  Capital expenditures

  	
   

  	
  (62.5

  	
  )

  	
  (250.0

  	
  )

  	
  (250.0

  	
  )

  	
  (250.0

  	
  )

  	
  (250.0

  	
  )

  	
  (250.0

  	
  )

  
	
  Decrease (increase) in working capital

  	
   

  	
  3,196.4

  	
   

  	
  (30.2

  	
  )

  	
  (112.1

  	
  )

  	
  (183.4

  	
  )

  	
  (165.7

  	
  )

  	
  (147.9

  	
  )

  
	
  Total adjustments to cash flow

  	
   

  	
  3,505.9

  	
   

  	
  1,207.8

  	
   

  	
  1,125.9

  	
   

  	
  1,054.6

  	
   

  	
  1,495.5

  	
   

  	
  1,809.2

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Invested capital cash flow

  	
   

  	
  2,719.3

  	
   

  	
  (72.4

  	
  )

  	
  1,965.4

  	
   

  	
  3,085.3

  	
   

  	
  3,844.4

  	
   

  	
  5,034.5

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Discount periods

  	
   

  	
  0.125

  	
   

  	
  0.750

  	
   

  	
  1.750

  	
   

  	
  2.750

  	
   

  	
  3.750

  	
   

  	
  4.750

  	
   

  
	
  Discount rate

  	
   

  	
  20.0

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Present value factor @ 20 percent

  	
   

  	
  0.9775

  	
   

  	
  0.8722

  	
   

  	
  0.7268

  	
   

  	
  0.6057

  	
   

  	
  0.5047

  	
   

  	
  0.4206

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Discounted cash flow

  	
   

  	
  2,658.0

  	
   

  	
  (63.2

  	
  )

  	
  1,428.5

  	
   

  	
  1,868.7

  	
   

  	
  1,940.4

  	
   

  	
  2,117.6

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total present value during projection
  period

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  9,950.1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Residual value:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2011 EBITDA

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  7,169.1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Terminal EBITDA multiple

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  7.0

  	
  x

  	
   

  	
   

  	
   

  	
   

  
	
  Terminal value

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  50,183.6

  	
   

  	
   

  	
   

  
	
  Present value factor

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0.3840

  	
   

  	
   

  	
   

  
	
  Present value of residual

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  19,269.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Value of operations

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  29,219.1

  	
   

  
	
  Value of nonoperating assets

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  3,837.7

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Indication of MVIC

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  33,100.0

  	
   

  
															

 

Sensitivity
Analysis

MVIC indication

 

	
   

  	
   

  	
  Terminal

  	
   

  	
  Discount Rate

  	
   

  
	
   

  	
   

  	
  Multiple

  	
   

  	
  15.0%

  	
   

  	
  17.5%

  	
   

  	
  20.0%

  	
   

  	
  22.5%

  	
   

  	
  25.0%

  	
   

  
	
   

  	
   

  	
  5.0

  	
  x

  	
  32,200.0

  	
   

  	
  29,700.0

  	
   

  	
  27,600.0

  	
   

  	
  25,600.0

  	
   

  	
  23,900.0

  	
   

  
	
   

  	
   

  	
  6.0

  	
  x

  	
  35,600.0

  	
   

  	
  32,800.0

  	
   

  	
  30,300.0

  	
   

  	
  28,100.0

  	
   

  	
  26,200.0

  	
   

  
	
   

  	
   

  	
  7.0

  	
  x

  	
  39,000.0

  	
   

  	
  35,900.0

  	
   

  	
  33,100.0

  	
   

  	
  30,600.0

  	
   

  	
  28,400.0

  	
   

  
	
   

  	
   

  	
  8.0

  	
  x

  	
  42,500.0

  	
   

  	
  38,900.0

  	
   

  	
  35,800.0

  	
   

  	
  33,000.0

  	
   

  	
  30,600.0

  	
   

  
	
   

  	
   

  	
  9.0

  	
  x

  	
  45,900.0

  	
   

  	
  42,000.0

  	
   

  	
  38,600.0

  	
   

  	
  35,500.0

  	
   

  	
  32,800.0

  	
   

  

 

Notes:

LTM = Latest 12 months.

NMF = Not meaningful figure.

N/A = Not available.

 

 

Exhibit 10

Apollo LNG, Inc.

Monte Carlo Simulation

 

Crystal Ball Report - Full

Simulation
started on 10/11/2006 at 15:50:21

Simulation
stopped on 10/11/2006 at 15:52:51

 

	
  Run preferences:

  	
   

  	
   

  	
   

  
	
  Number of trials run

  	
   

  	
  10,000

  	
   

  
	
  Monte Carlo

  	
   

  	
   

  	
   

  
	
  Seed

  	
   

  	
  999

  	
   

  
	
  Precision control on

  	
   

  	
   

  	
   

  
	
  Confidence level

  	
   

  	
  95.00

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Run statistics:

  	
   

  	
   

  	
   

  
	
  Total running time (sec)

  	
   

  	
  150.20

  	
   

  
	
  Trials/second (average)

  	
   

  	
  67

  	
   

  
	
  Random numbers per sec

  	
   

  	
  732

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Crystal Ball data:

  	
   

  	
   

  	
   

  
	
  Assumptions

  	
   

  	
  11

  	
   

  
	
  Correlations

  	
   

  	
  9

  	
   

  
	
  Correlated groups

  	
   

  	
  2

  	
   

  
	
  Decision variables

  	
   

  	
  0

  	
   

  
	
  Forecasts

  	
   

  	
  1

  	
   

  

 

 

Forecasts

 

Forecast:
DCF Indication of MVIC

 

Summary:

Entire range is from
$27,500.0  to $39,300.0

Base case is $33,100.0

After 10,000 trials, the
std. error of the mean is $17.3

 

 

	
  Statistics:

  	
   

  	
  Forecast values

  	
   

  
	
  Trials

  	
   

  	
  10,000

  	
   

  
	
  Mean

  	
   

  	
  $

  	
  33,307.1

  	
   

  
	
  Median

  	
   

  	
  $

  	
  33,300.0

  	
   

  
	
  Mode

  	
   

  	
  $

  	
  32,900.0

  	
   

  
	
  Standard Deviation

  	
   

  	
  $

  	
  1,732.4

  	
   

  
	
  Variance

  	
   

  	
  $

  	
  3,001,241.7

  	
   

  
	
  Skewness

  	
   

  	
  0.0471

  	
   

  
	
  Kurtosis

  	
   

  	
  2.81

  	
   

  
	
  Coeff. of Variability

  	
   

  	
  0.0520

  	
   

  
	
  Minimum

  	
   

  	
  $

  	
  27,500.0

  	
   

  
	
  Maximum

  	
   

  	
  $

  	
  39,300.0

  	
   

  
	
  Range Width

  	
   

  	
  $

  	
  11,800.0

  	
   

  
	
  Mean Std. Error

  	
   

  	
  $

  	
  17.3

  	
   

  

 

 

	
  Percentiles:

  	
   

  	
  Forecast values

  	
   

  
	
  0%

  	
   

  	
  $

  	
  27,500.0

  	
   

  
	
  10%

  	
   

  	
  $

  	
  31,100.0

  	
   

  
	
  20%

  	
   

  	
  $

  	
  31,800.0

  	
   

  
	
  30%

  	
   

  	
  $

  	
  32,400.0

  	
   

  
	
  40%

  	
   

  	
  $

  	
  32,900.0

  	
   

  
	
  50%

  	
   

  	
  $

  	
  33,300.0

  	
   

  
	
  60%

  	
   

  	
  $

  	
  33,700.0

  	
   

  
	
  70%

  	
   

  	
  $

  	
  34,200.0

  	
   

  
	
  80%

  	
   

  	
  $

  	
  34,800.0

  	
   

  
	
  90%

  	
   

  	
  $

  	
  35,600.0

  	
   

  
	
  100%

  	
   

  	
  $

  	
  39,300.0

  	
   

  

 

End of Forecasts

 

 

Assumptions

 

Assumption:
Operating expense reduction 2007

 

	
  Triangular distribution with parameters:

  	
   

  	
   

  	
   

  
	
  Minimum

  	
   

  	
  50.0

  	
  %

  
	
  Likeliest

  	
   

  	
  75.0

  	
  %

  
	
  Maximum

  	
   

  	
  100.0

  	
  %

  

 

 

	
  Correlated with:

  	
   

  	
  Coefficient

  
	
  Operating expense reduction 2008

  	
   

  	
  0.50

  

 

Assumption:
Operating expense reduction 2008

 

	
  Triangular distribution with parameters:

  	
   

  	
   

  	
   

  
	
  Minimum

  	
   

  	
  40.0

  	
  %

  
	
  Likeliest

  	
   

  	
  50.0

  	
  %

  
	
  Maximum

  	
   

  	
  75.0

  	
  %

  

 

 

	
  Correlated with:

  	
   

  	
  Coefficient

  
	
  Operating
  expense reduction 2007

  	
   

  	
  0.50

  
	
  Operating
  expense reduction 2009

  	
   

  	
  0.50

  

 

Assumption:
Operating expense reduction 2009

 

	
  Triangular distribution with parameters:

  	
   

  	
   

  	
   

  
	
  Minimum

  	
   

  	
  35.0

  	
  %

  
	
  Likeliest

  	
   

  	
  50.0

  	
  %

  
	
  Maximum

  	
   

  	
  60.0

  	
  %

  

 

 

	
  Correlated with:

  	
   

  	
  Coefficient

  
	
  Operating
  expense reduction 2010

  	
   

  	
  0.50

  
	
  Operating
  expense reduction 2008

  	
   

  	
  0.50

  

 

 

Assumption:
Operating expense reduction 2010

 

	
  Triangular distribution with parameters:

  	
   

  	
   

  	
   

  
	
  Minimum

  	
   

  	
  35.0

  	
  %

  
	
  Likeliest

  	
   

  	
  50.0

  	
  %

  
	
  Maximum

  	
   

  	
  60.0

  	
  %

  

 

 

	
  Correlated with:

  	
   

  	
  Coefficient

  
	
  Operating
  expense reduction 2011

  	
   

  	
  0.50

  
	
  Operating
  expense reduction 2009

  	
   

  	
  0.50

  

 

Assumption:
Operating expense reduction 2011

 

	
  Triangular distribution with parameters:

  	
   

  	
   

  	
   

  
	
  Minimum

  	
   

  	
  35.0

  	
  %

  
	
  Likeliest

  	
   

  	
  50.0

  	
  %

  
	
  Maximum

  	
   

  	
  60.0

  	
  %

  

 

 

	
  Correlated with:

  	
   

  	
  Coefficient

  
	
  Operating
  expense reduction 2010

  	
   

  	
  0.50

  

 

Assumption:
2006 Gross Profit

 

	
  Triangular distribution with parameters:

  	
   

  	
   

  	
   

  
	
  Minimum

  	
   

  	
  $

  	
  0.16

  	
   

  
	
  Likeliest

  	
   

  	
  $

  	
  0.18

  	
   

  
	
  Maximum

  	
   

  	
  $

  	
  0.20

  	
   

  

 

 

	
  Correlated with:

  	
   

  	
  Coefficient

  
	
  2007
  Gross Profit

  	
   

  	
  0.50

  

 

 

Assumption:
2007 Gross Profit

 

	
  Triangular distribution with parameters:

  	
   

  	
   

  	
   

  
	
  Minimum

  	
   

  	
  $

  	
  0.16

  	
   

  
	
  Likeliest

  	
   

  	
  $

  	
  0.18

  	
   

  
	
  Maximum

  	
   

  	
  $

  	
  0.20

  	
   

  

 

 

	
  Correlated with:

  	
   

  	
  Coefficient

  
	
  2008
  Gross Profit

  	
   

  	
  0.50

  
	
  2006
  Gross Profit

  	
   

  	
  0.50

  

 

Assumption:
2008 Gross Profit

 

	
  Triangular distribution with parameters:

  	
   

  	
   

  	
   

  
	
  Minimum

  	
   

  	
  $

  	
  0.18

  	
   

  
	
  Likeliest

  	
   

  	
  $

  	
  0.20

  	
   

  
	
  Maximum

  	
   

  	
  $

  	
  0.22

  	
   

  

 

 

	
  Correlated with:

  	
   

  	
  Coefficient

  
	
  2007
  Gross Profit

  	
   

  	
  0.50

  
	
  2009
  Gross Profit

  	
   

  	
  0.50

  

 

Assumption:
2009 Gross Profit

 

	
  Triangular distribution with parameters:

  	
   

  	
   

  	
   

  
	
  Minimum

  	
   

  	
  $

  	
  0.22

  	
   

  
	
  Likeliest

  	
   

  	
  $

  	
  0.24

  	
   

  
	
  Maximum

  	
   

  	
  $

  	
  0.26

  	
   

  

 

 

	
  Correlated with:

  	
   

  	
  Coefficient

  
	
  2008
  Gross Profit

  	
   

  	
  0.50

  
	
  2010
  Gross Profit

  	
   

  	
  0.50

  

 

 

Assumption:
2010 Gross Profit

 

	
  Triangular distribution with parameters:

  	
   

  	
   

  	
   

  
	
  Minimum

  	
   

  	
  $

  	
  0.24

  	
   

  
	
  Likeliest

  	
   

  	
  $

  	
  0.26

  	
   

  
	
  Maximum

  	
   

  	
  $

  	
  0.28

  	
   

  

 

 

	
  Correlated with:

  	
   

  	
  Coefficient

  
	
  2011
  Gross Profit

  	
   

  	
  0.50

  
	
  2009
  Gross Profit

  	
   

  	
  0.50

  

 

Assumption:
2011 Gross Profit

 

	
  Triangular distribution with parameters:

  	
   

  	
   

  	
   

  
	
  Minimum

  	
   

  	
  $

  	
  0.26

  	
   

  
	
  Likeliest

  	
   

  	
  $

  	
  0.28

  	
   

  
	
  Maximum

  	
   

  	
  $

  	
  0.30

  	
   

  

 

 

	
  Correlated with:

  	
   

  	
  Coefficient

  
	
  2010
  Gross Profit

  	
   

  	
  0.50

  

 

End of Assumptions

 

 

Exhibit 11

Apollo
LNG, Inc.

Internal
Transaction Method

 

Apollo
Resources, Inc. purchased Applied LNG Technologies U.S.A, L.L.C. and TxHLDM on
November 30, 2005. Apollo Resources, Inc. combined these two companies into
Apollo LNG, Inc.

 

	
  (in thousands of $ unless otherwise noted)

  	
   

  	
   

  	
   

  
	
  Consideration:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Paid for Applied LNG Technologies U.S.A,
  L.L.C.

  	
   

  	
   

  	
   

  
	
  Series A Preferred shares in Apollo LNG,
  Inc.

  	
   

  	
  $

  	
  12,500.0

  	
   

  
	
  Series B Preferred shares in Apollo LNG,
  Inc.

  	
   

  	
  12,500.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total paid for Applied LNG Technologies
  U.S.A, L.L.C.

  	
   

  	
  $

  	
  25,000.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Paid for TxHLDM:

  	
   

  	
   

  	
   

  
	
  Cash

  	
   

  	
  $

  	
  4,500.0

  	
   

  
	
  Promissory note

  	
   

  	
  6,000.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total paid for TxHLDM, Inc.

  	
   

  	
  $

  	
  10,500.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total paid for Applied LNG Technologies
  U.S.A, L.L.C. and TxHLDM, Inc.

  	
   

  	
  $

  	
  35,500.0

  	
   

  
	
  Value of nonoperating assets

  	
   

  	
  3,837.7

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Indication of MVIC

  	
   

  	
  $

  	
  39,300.0

  	
   

  

 

 

Exhibit 12

Apollo LNG, Inc.

Correlation and Exchange Ratio

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Weighted

  	
   

  
	
   

  	
   

  	
  Indication

  	
   

  	
  Weighting

  	
   

  	
  Indication

  	
   

  
	
  Correlation of MVIC including nonoperating assets:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Discounted cash flow analysis

  	
   

  	
  $

  	
  33,100,000

  	
   

  	
  50.0

  	
  %

  	
  $

  	
  16,550,000

  	
   

  
	
  Internal transaction method

  	
   

  	
  $

  	
  39,300,000

  	
   

  	
  50.0

  	
  %

  	
  $

  	
  19,650,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Concluded value of invested capital

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  36,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Interest-bearing debt (represented by
  management at Valuation Date)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  6,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Concluded value of equity (rounded)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  30,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Closing price per share of Earth Biofuels
  stock as of October 10, 2006

  	
   

  	
   

  	
   

  	
  $

  	
  1.99

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Restricted stock discount

  	
   

  	
   

  	
   

  	
  20.0

  	
  %

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exchange price per share of Earth Biofuels
  stock as of October 10, 2006

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  1.59

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shares of Earth Biofuels stock to be
  exchanged for Apollo LNG, Inc. (rounded)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  18,844,222

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Number of outstanding Earth Biofuels shares
  as of October 10, 2006

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  215,037,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Percent of Earth Biofuels acquired by
  Apollo Resources, Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  8.1

  	
  %

  
											

 

Sensitivity
Analysis

Shares to be exchanged

 

	
  Restricted

  Stock

  	
   

  	
  Value of Invested Capital in Apollo LNG

  	
   

  
	
  Discount

  	
   

  	
  $32,000,000

  	
   

  	
  $34,000,000

  	
   

  	
  $36,000,000

  	
   

  	
  $38,000,000

  	
   

  	
  $40,000,000

  	
   

  
	
  10.0%

  	
   

  	
  14,517,030

  	
   

  	
  15,633,724

  	
   

  	
  16,750,418

  	
   

  	
  17,867,114

  	
   

  	
  18,983,808

  	
   

  
	
  15.0%

  	
   

  	
  15,370,972

  	
   

  	
  16,553,356

  	
   

  	
  17,735,738

  	
   

  	
  18,918,120

  	
   

  	
  20,100,502

  	
   

  
	
  20.0%

  	
   

  	
  16,331,658

  	
   

  	
  17,587,940

  	
   

  	
  18,844,222

  	
   

  	
  20,100,502

  	
   

  	
  21,356,784

  	
   

  
	
  25.0%

  	
   

  	
  17,420,436

  	
   

  	
  18,760,470

  	
   

  	
  20,100,502

  	
   

  	
  21,440,536

  	
   

  	
  22,780,570

  	
   

  
	
  30.0%

  	
   

  	
  18,664,752

  	
   

  	
  20,100,502

  	
   

  	
  21,536,252

  	
   

  	
  22,972,002

  	
   

  	
  24,407,754

  	
   

  

 

 

Exhibit 13

Earth
Biofuels Inc.

Comparative
Summary Balance Sheet

 

	
   

  	
   

  	
  FYE

  	
   

  	
  As of

  	
   

  
	
   

  	
   

  	
  Sep. 30,

  	
   

  	
  Jun. 30,

  	
   

  
	
  (in thousands of $ unless otherwise noted)

  	
   

  	
  2005

  	
   

  	
  2006

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ASSETS

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Current assets:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cash and equivalents

  	
   

  	
  82.1

  	
   

  	
  386.0

  	
   

  
	
  Accounts receivable

  	
   

  	
  253.4

  	
   

  	
  405.0

  	
   

  
	
  Inventory

  	
   

  	
  131.4

  	
   

  	
  174.0

  	
   

  
	
  Prepaid expenses

  	
   

  	
  40.4

  	
   

  	
  1,936.0

  	
   

  
	
  Other recievables

  	
   

  	
  374.4

  	
   

  	
  0.0

  	
   

  
	
  Other

  	
   

  	
  0.0

  	
   

  	
  1,135.0

  	
   

  
	
  Total current assets

  	
   

  	
  881.6

  	
   

  	
  4,036.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net fixed assets

  	
   

  	
  455.4

  	
   

  	
  11,568.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other assets:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Long-term investments

  	
   

  	
  0.0

  	
   

  	
  475.0

  	
   

  
	
  Goodwill

  	
   

  	
  3,981.3

  	
   

  	
  3,981.0

  	
   

  
	
  Other

  	
   

  	
  261.4

  	
   

  	
  13,078.0

  	
   

  
	
  Total other assets

  	
   

  	
  4,242.7

  	
   

  	
  17,534.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total assets

  	
   

  	
  5,579.7

  	
   

  	
  33,138.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LIABILITIES & EQUITY

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Current liabilities:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounts payable

  	
   

  	
  763.2

  	
   

  	
  1,575.0

  	
   

  
	
  Debt in current liabilities

  	
   

  	
  0.0

  	
   

  	
  3,575.0

  	
   

  
	
  Accrued expenses

  	
   

  	
  12.6

  	
   

  	
  0.0

  	
   

  
	
  Other

  	
   

  	
  5,750.8

  	
   

  	
  29,048.0

  	
   

  
	
  Total current liabilities

  	
   

  	
  6,526.7

  	
   

  	
  34,198.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total liabilities

  	
   

  	
  6,526.7

  	
   

  	
  34,198.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Equity:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Capital stock

  	
   

  	
  161.6

  	
   

  	
  195.0

  	
   

  
	
  Paid-in capital

  	
   

  	
  9,499.7

  	
   

  	
  28,619.0

  	
   

  
	
  Retained earnings

  	
   

  	
  (10,509.8

  	
  )

  	
  (29,874.0

  	
  )

  
	
  Comprehensive income and other

  	
   

  	
  (98.5

  	
  )

  	
  0.0

  	
   

  
	
  Total equity

  	
   

  	
  (947.0

  	
  )

  	
  (1,060.0

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total liabilities and equity

  	
   

  	
  5,579.7

  	
   

  	
  33,138.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Additional data:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net working capital

  	
   

  	
  (5,645.1

  	
  )

  	
  (30,162.0

  	
  )

  
	
  Working capital excluding cash and debt

  	
   

  	
  (5,727.2

  	
  )

  	
  (26,973.0

  	
  )

  
	
  Total interest bearing debt

  	
   

  	
  0.0

  	
   

  	
  3,575.0

  	
   

  
	
  Total invested capital

  	
   

  	
  (947.0

  	
  )

  	
  2,515.0

  	
   

  
	
  Decrease (increase) in net working capital

  	
   

  	
  N/A

  	
   

  	
  24,516.9

  	
   

  

 

Sources and Notes:

SEC filings.

Differences due to rounding.

 

 

Earth
Biofuels Inc.

Common Size Comparative Summary Balance Sheet

 

	
   

  	
   

  	
  FYE

  	
   

  	
  As of

  	
   

  
	
   

  	
   

  	
  Sep. 30,

  	
   

  	
  Jun. 30,

  	
   

  
	
   

  	
   

  	
  2005

  	
   

  	
  2006

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ASSETS

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Current assets:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cash and equivalents

  	
   

  	
  1.5

  	
  %

  	
  1.2

  	
  %

  
	
  Accounts receivable

  	
   

  	
  4.5

  	
  %

  	
  1.2

  	
  %

  
	
  Inventory

  	
   

  	
  2.4

  	
  %

  	
  0.5

  	
  %

  
	
  Prepaid expenses

  	
   

  	
  0.7

  	
  %

  	
  5.8

  	
  %

  
	
  Other recievables

  	
   

  	
  6.7

  	
  %

  	
  0.0

  	
  %

  
	
  Other

  	
   

  	
  0.0

  	
  %

  	
  3.4

  	
  %

  
	
  Total current assets

  	
   

  	
  15.8

  	
  %

  	
  12.2

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net fixed assets

  	
   

  	
  8.2

  	
  %

  	
  34.9

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other assets:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Long-term investments

  	
   

  	
  0.0

  	
  %

  	
  1.4

  	
  %

  
	
  Goodwill

  	
   

  	
  71.4

  	
  %

  	
  12.0

  	
  %

  
	
  Other

  	
   

  	
  4.7

  	
  %

  	
  39.5

  	
  %

  
	
  Total other assets

  	
   

  	
  76.0

  	
  %

  	
  52.9

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total assets

  	
   

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LIABILITIES & EQUITY

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Current liabilities:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accounts payable

  	
   

  	
  13.7

  	
  %

  	
  4.8

  	
  %

  
	
  Debt in current liabilities

  	
   

  	
  0.0

  	
  %

  	
  10.8

  	
  %

  
	
  Accrued expenses

  	
   

  	
  0.2

  	
  %

  	
  0.0

  	
  %

  
	
  Other

  	
   

  	
  103.1

  	
  %

  	
  87.7

  	
  %

  
	
  Total current liabilities

  	
   

  	
  117.0

  	
  %

  	
  103.2

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total liabilities

  	
   

  	
  117.0

  	
  %

  	
  103.2

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Equity:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Capital stock

  	
   

  	
  2.9

  	
  %

  	
  0.6

  	
  %

  
	
  Paid-in capital

  	
   

  	
  170.3

  	
  %

  	
  86.4

  	
  %

  
	
  Retained earnings

  	
   

  	
  (188.4

  	
  )%

  	
  (90.2

  	
  )%

  
	
  Comprehensive income and other

  	
   

  	
  (1.8

  	
  )%

  	
  0.0

  	
  %

  
	
  Total equity

  	
   

  	
  (17.0

  	
  )%

  	
  (3.2

  	
  )%

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total liabilities and equity

  	
   

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Additional data:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net working capital

  	
   

  	
  (101.2

  	
  )%

  	
  (91.0

  	
  )%

  
	
  Working capital excluding cash and debt

  	
   

  	
  (102.6

  	
  )%

  	
  (81.4

  	
  )%

  
	
  Total interest bearing debt

  	
   

  	
  0.0

  	
  %

  	
  10.8

  	
  %

  
	
  Total invested capital

  	
   

  	
  (17.0

  	
  )%

  	
  7.6

  	
  %

  
	
  Decrease (increase) in net working capital

  	
   

  	
  N/A

  	
   

  	
  74.0

  	
  %

  

 

 

Earth
Biofuels Inc.

Comparative
Summary Income Statement

 

	
   

  	
   

  	
  FYE

  	
   

  	
  LTM

  	
   

  
	
   

  	
   

  	
  Sep. 30,

  	
   

  	
  Jun. 30,

  	
   

  
	
  (in thousands of $ unless otherwise noted)

  	
   

  	
  2005

  	
   

  	
  2006

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total revenue, net

  	
   

  	
  1,943.5

  	
   

  	
  6,065.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total cost of goods sold

  	
   

  	
  1,859.0

  	
   

  	
  5,691.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gross profit

  	
   

  	
  84.5

  	
   

  	
  374.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Operating expenses:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Selling, general and administrative
  expenses

  	
   

  	
  1,406.0

  	
   

  	
  7,776.0

  	
   

  
	
  Stock-based compensation

  	
   

  	
  9,133.0

  	
   

  	
  19,098.0

  	
   

  
	
  Total operating expenses

  	
   

  	
  10,539.0

  	
   

  	
  26,874.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Operating income

  	
   

  	
  (10,454.4

  	
  )

  	
  (26,500.0

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other income (expense)

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Interest expense

  	
   

  	
  0.0

  	
   

  	
  (2,801.0

  	
  )

  
	
  Interest and investment income

  	
   

  	
  0.0

  	
   

  	
  9.0

  	
   

  
	
  Other income (expense)

  	
   

  	
  0.9

  	
   

  	
  (414.0

  	
  )

  
	
  Total other income (expense)

  	
   

  	
  0.9

  	
   

  	
  (3,206.0

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pretax income

  	
   

  	
  (10,453.6

  	
  )

  	
  (29,706.0

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Income tax expense

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net income

  	
   

  	
  (10,453.6

  	
  )

  	
  (29,706.0

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Additional data:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Depreciation and amortization

  	
   

  	
  4.8

  	
   

  	
  15.0

  	
   

  
	
  Capital expenditures

  	
   

  	
  443.8

  	
   

  	
  2,983.0

  	
   

  
	
  Decrease (increase) in net working capital

  	
   

  	
  N/A

  	
   

  	
  24,516.9

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OIBDA

  	
   

  	
  (10,449.7

  	
  )

  	
  (26,485.0

  	
  )

  
	
  EBITDA

  	
   

  	
  (10,448.8

  	
  )

  	
  (26,890.0

  	
  )

  
	
  EBIT

  	
   

  	
  (10,453.6

  	
  )

  	
  (26,905.0

  	
  )

  
	
  Gross cash flow

  	
   

  	
  (10,448.8

  	
  )

  	
  (29,691.0

  	
  )

  

 

 

Sources and Notes:

SEC filings.

LTM = Latest 12 months.

 

 

Earth
Biofuels Inc.

Common Size Comparative Summary Income Statement

 

	
   

  	
   

  	
  FYE

  	
   

  	
  LTM

  	
   

  
	
   

  	
   

  	
  Sep. 30,

  	
   

  	
  Jun. 30,

  	
   

  
	
   

  	
   

  	
  2005

  	
   

  	
  2006

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total revenue, net

  	
   

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total cost of goods sold

  	
   

  	
  95.6

  	
  %

  	
  93.8

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gross profit

  	
   

  	
  4.4

  	
  %

  	
  6.2

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Operating expenses:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Selling, general and administrative
  expenses

  	
   

  	
  72.3

  	
  %

  	
  128.2

  	
  %

  
	
  Stock-based compensation

  	
   

  	
  469.9

  	
  %

  	
  314.9

  	
  %

  
	
  Total operating expenses

  	
   

  	
  542.3

  	
  %

  	
  443.1

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Operating income

  	
   

  	
  (537.9

  	
  )%

  	
  (436.9

  	
  )%

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other income (expense)

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Interest expense

  	
   

  	
  0.0

  	
  %

  	
  (46.2

  	
  )%

  
	
  Interest and investment income

  	
   

  	
  0.0

  	
  %

  	
  0.1

  	
  %

  
	
  Other income (expense)

  	
   

  	
  0.0

  	
  %

  	
  (6.8

  	
  )%

  
	
  Total other income (expense)

  	
   

  	
  0.0

  	
  %

  	
  (52.9

  	
  )%

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pretax income

  	
   

  	
  (537.9

  	
  )%

  	
  (489.8

  	
  )%

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Income tax expense

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net income

  	
   

  	
  (537.9

  	
  )%

  	
  (489.8

  	
  )%

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Additional data:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Depreciation and amortization

  	
   

  	
  0.2

  	
  %

  	
  0.2

  	
  %

  
	
  Capital expenditures

  	
   

  	
  22.8

  	
  %

  	
  49.2

  	
  %

  
	
  Decrease (increase) in net working capital

  	
   

  	
  N/A

  	
   

  	
  404.2

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OIBDA

  	
   

  	
  (537.7

  	
  )%

  	
  (436.7

  	
  )%

  
	
  EBITDA

  	
   

  	
  (537.6

  	
  )%

  	
  (443.4

  	
  )%

  
	
  EBIT

  	
   

  	
  (537.9

  	
  )%

  	
  (443.6

  	
  )%

  
	
  Gross cash flow

  	
   

  	
  (537.6

  	
  )%

  	
  (489.5

  	
  )%

  

 

 

Earth
Biofuels Inc.

Ratio Analysis

 

	
   

  	
   

  	
  FYE

  	
   

  	
  LTM

  	
   

  
	
   

  	
   

  	
  Sep. 30,

  	
   

  	
  Jun. 30,

  	
   

  
	
   

  	
   

  	
  2005

  	
   

  	
  2006

  	
   

  
	
  Liquidity

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Current ratio

  	
   

  	
  0.1

  	
   

  	
  0.1

  	
   

  
	
  Quick ratio

  	
   

  	
  0.1

  	
   

  	
  0.0

  	
   

  
	
  Net working capital turnover

  	
   

  	
  -0.3

  	
  x

  	
  -0.2

  	
  x

  
	
  Net working capital-to-revenue

  	
   

  	
  (290.5

  	
  )%

  	
  (497.3

  	
  )%

  
	
  Working capital-to-revenue excluding cash
  and debt

  	
   

  	
  (294.7

  	
  )%

  	
  (444.7

  	
  )%

  
	
  Cash-to-revenue

  	
   

  	
  4.2

  	
  %

  	
  6.4

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Asset
  mix

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cash-to-total assets

  	
   

  	
  1.5

  	
  %

  	
  1.2

  	
  %

  
	
  Accounts receivable-to-total assets

  	
   

  	
  4.5

  	
  %

  	
  1.2

  	
  %

  
	
  Inventory-to-total assets

  	
   

  	
  2.4

  	
  %

  	
  0.5

  	
  %

  
	
  Net fixed assets-to-total assets

  	
   

  	
  8.2

  	
  %

  	
  34.9

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Activity

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Inventory turnover

  	
   

  	
  14.1

  	
  x

  	
  32.7

  	
  x

  
	
  Inventory days

  	
   

  	
  25.8

  	
   

  	
  11.2

  	
   

  
	
  Accounts receivable turnover

  	
   

  	
  7.7

  	
  x

  	
  15.0

  	
  x

  
	
  Accounts receivable days

  	
   

  	
  47.6

  	
   

  	
  24.4

  	
   

  
	
  Accounts payable turnover

  	
   

  	
  2.4

  	
  x

  	
  3.6

  	
  x

  
	
  Accounts payable days

  	
   

  	
  149.9

  	
   

  	
  101.0

  	
   

  
	
  Net trade cycle

  	
   

  	
  (76.5

  	
  )

  	
  (65.5

  	
  )

  
	
  Asset turnover

  	
   

  	
  0.3

  	
  x

  	
  0.2

  	
  x

  
	
  Fixed asset turnover

  	
   

  	
  4.3

  	
  x

  	
  0.5

  	
  x

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Leverage

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total assets-to-equity

  	
   

  	
  -5.9

  	
  x

  	
  -31.3

  	
  x

  
	
  Total liabilities-to-equity

  	
   

  	
  -6.9

  	
  x

  	
  -32.3

  	
  x

  
	
  Total debt-to-equity

  	
   

  	
  0.0

  	
  x

  	
  -3.4

  	
  x

  
	
  Interest coverage

  	
   

  	
  NMF

  	
   

  	
  -9.6

  	
  x

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Growth

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Revenue

  	
   

  	
  NMF

  	
   

  	
  873.8

  	
  %

  
	
  EBITDA

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
  EBIT

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
  Net income

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  
	
  Assets

  	
   

  	
  NMF

  	
   

  	
  3427.2

  	
  %

  

 

 

 

	
   

  	
   

  	
  FYE

  	
   

  	
  LTM

  	
   

  
	
   

  	
   

  	
  Sep. 30,

  	
   

  	
  Jun. 30,

  	
   

  
	
   

  	
   

  	
  2005

  	
   

  	
  2006

  	
   

  
	
  Profitability

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gross profit margin

  	
   

  	
  4.4

  	
  %

  	
  6.2

  	
  %

  
	
  Operating expenses-to-revenue

  	
   

  	
  542.3

  	
  %

  	
  443.1

  	
  %

  
	
  Operating margin

  	
   

  	
  (537.9

  	
  )%

  	
  (436.9

  	
  )%

  
	
  EBITDA-to-revenue

  	
   

  	
  (537.6

  	
  )%

  	
  (443.4

  	
  )%

  
	
  EBIT-to-revenue

  	
   

  	
  (537.9

  	
  )%

  	
  (443.6

  	
  )%

  
	
  Pretax income-to-revenue

  	
   

  	
  (537.9

  	
  )%

  	
  (489.8

  	
  )%

  
	
  Pretax income-to-equity

  	
   

  	
  1103.9

  	
  %

  	
  2802.5

  	
  %

  
	
  Pretax income-to-total assets

  	
   

  	
  (187.3

  	
  )%

  	
  (89.6

  	
  )%

  
	
  Net income-to-revenue

  	
   

  	
  (537.9

  	
  )%

  	
  (489.8

  	
  )%

  
	
  Net income-to-equity

  	
   

  	
  1103.9

  	
  %

  	
  2802.5

  	
  %

  
	
  Net income-to-total assets

  	
   

  	
  (187.3

  	
  )%

  	
  (89.6

  	
  )%

  
	
  Gross cash flow-to-revenue

  	
   

  	
  (537.6

  	
  )%

  	
  (489.5

  	
  )%

  
	
  Effective tax rate

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  
	
  Dividends-to-net income

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Depreciation
  & capital exp.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Depreciation-to-revenue

  	
   

  	
  0.2

  	
  %

  	
  0.2

  	
  %

  
	
  Capital expenditures-to-revenue

  	
   

  	
  22.8

  	
  %

  	
  49.2

  	
  %

  
	
  Capital expenditures-to-depreciation

  	
   

  	
  9338.7

  	
  %

  	
  19886.7

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dupont
  analysis

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net income-to-pretax income

  	
   

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  
	
  Pretax income-to-EBIT

  	
   

  	
  100.0

  	
  %

  	
  110.4

  	
  %

  
	
  EBIT-to-revenue

  	
   

  	
  (537.9

  	
  )%

  	
  (443.6

  	
  )%

  
	
  Revenue-to-total assets

  	
   

  	
  34.8

  	
  %

  	
  18.3

  	
  %

  
	
  Total assets-to-equity

  	
   

  	
  (589.2

  	
  )%

  	
  (3126.2

  	
  )%

  
	
  Return on equity

  	
   

  	
  1103.9

  	
  %

  	
  2802.5

  	
  %

  

 

Notes:

(1) Growth averages
calculated as compound annual growth rates.

NMF = Not meaningful figure.

N/A = Data insufficient to
perform these calculations.

Differences due to rounding.

 

 

Exhibit 14

Earth
Biofuels Inc.

Comparative
Ratio Analysis

 

Ticker Definitions:

AOOR
= Apollo Resources International

EBOF
= Earth Biofuels Inc.

EPG
= Environmental Power Corp.

FSYS
= Fuel Systems Solutions, Inc.

GPRE
= Green Plains Renewable Energy Inc.

PEIX
= Pacific Ethanol, Inc.

RTK
= Rentech, Inc.

VSE
= Verasun Energy, Corp.

XNL
= Xethanol Corporation

 

	
  Public Company

  	
   

  	
  AOOR

  	
   

  	
  EBOF

  	
   

  	
  EPG

  	
   

  	
  FSYS

  	
   

  	
  GPRE

  	
   

  	
  PEIX

  	
   

  	
  RTK

  	
   

  	
  VSE

  	
   

  	
  XNL

  	
   

  	
  Mean

  	
   

  	
  Median

  	
   

  	
  Earth Biofuels

  	
   

  	
  Comparability

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Common size

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Selected
  Income Statement Data

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total revenue,
  net

  	
   

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  N/A

  	
   

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  SIMILAR

  	
   

  
	
  Total cost of
  goods sold

  	
   

  	
  113.6

  	
  %

  	
  93.8

  	
  %

  	
  102.6

  	
  %

  	
  72.6

  	
  %

  	
  N/A

  	
   

  	
  94.2

  	
  %

  	
  94.6

  	
  %

  	
  69.7

  	
  %

  	
  96.8

  	
  %

  	
  92.2

  	
  %

  	
  94.4

  	
  %

  	
  93.8

  	
  %

  	
  SIMILAR

  	
   

  
	
  OIBDA

  	
   

  	
  (214.4

  	
  )%

  	
  (436.7

  	
  )%

  	
  (25.4

  	
  )%

  	
  10.5

  	
  %

  	
  N/A

  	
   

  	
  (4.0

  	
  )%

  	
  (118.9

  	
  )%

  	
  23.9

  	
  %

  	
  (86.6

  	
  )%

  	
  (106.4

  	
  )%

  	
  (56.0

  	
  )%

  	
  (436.7

  	
  )%

  	
  SMALLER

  	
   

  
	
  EBITDA

  	
   

  	
  (114.2

  	
  )%

  	
  (121.8

  	
  )%

  	
  (21.8

  	
  )%

  	
  10.0

  	
  %

  	
  N/A

  	
   

  	
  (4.1

  	
  )%

  	
  (82.7

  	
  )%

  	
  28.8

  	
  %

  	
  (66.6

  	
  )%

  	
  (46.5

  	
  )%

  	
  (44.2

  	
  )%

  	
  (443.4

  	
  )%

  	
  SMALLER

  	
   

  
	
  Depreciation and
  amortization

  	
   

  	
  28.8

  	
  %

  	
  0.2

  	
  %

  	
  1.0

  	
  %

  	
  3.5

  	
  %

  	
  N/A

  	
   

  	
  1.1

  	
  %

  	
  7.8

  	
  %

  	
  2.0

  	
  %

  	
  7.3

  	
  %

  	
  6.5

  	
  %

  	
  2.7

  	
  %

  	
  0.2

  	
  %

  	
  SMALLER

  	
   

  
	
  Operating income

  	
   

  	
  (243.1

  	
  )%

  	
  (436.9

  	
  )%

  	
  (26.3

  	
  )%

  	
  7.0

  	
  %

  	
  N/A

  	
   

  	
  (5.1

  	
  )%

  	
  (126.7

  	
  )%

  	
  21.9

  	
  %

  	
  (93.9

  	
  )%

  	
  (112.9

  	
  )%

  	
  (60.1

  	
  )%

  	
  (436.9

  	
  )%

  	
  SMALLER

  	
   

  
	
  EBIT

  	
   

  	
  (143.0

  	
  )%

  	
  (122.0

  	
  )%

  	
  (22.7

  	
  )%

  	
  6.5

  	
  %

  	
  N/A

  	
   

  	
  (5.2

  	
  )%

  	
  (90.5

  	
  )%

  	
  26.9

  	
  %

  	
  (73.9

  	
  )%

  	
  (53.0

  	
  )%

  	
  (48.3

  	
  )%

  	
  (443.6

  	
  )%

  	
  SMALLER

  	
   

  
	
  Interest expense

  	
   

  	
  19.8

  	
  %

  	
  46.2

  	
  %

  	
  1.1

  	
  %

  	
  0.4

  	
  %

  	
  N/A

  	
   

  	
  0.1

  	
  %

  	
  8.1

  	
  %

  	
  7.6

  	
  %

  	
  5.8

  	
  %

  	
  11.1

  	
  %

  	
  6.7

  	
  %

  	
  46.2

  	
  %

  	
  LARGER

  	
   

  
	
  Pretax income

  	
   

  	
  (241.4

  	
  )%

  	
  (489.8

  	
  )%

  	
  (25.8

  	
  )%

  	
  5.5

  	
  %

  	
  N/A

  	
   

  	
  (62.3

  	
  )%

  	
  (139.8

  	
  )%

  	
  10.3

  	
  %

  	
  (150.1

  	
  )%

  	
  (136.7

  	
  )%

  	
  (101.1

  	
  )%

  	
  (489.8

  	
  )%

  	
  SMALLER

  	
   

  
	
  Income tax
  expense

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  (0.2

  	
  )%

  	
  7.6

  	
  %

  	
  N/A

  	
   

  	
  0.0

  	
  %

  	
  1.0

  	
  %

  	
  4.4

  	
  %

  	
  0.0

  	
  %

  	
  1.6

  	
  %

  	
  0.0

  	
  %

  	
  (171.4

  	
  )%

  	
  SMALLER

  	
   

  
	
  Net income

  	
   

  	
  (241.4

  	
  )%

  	
  (489.8

  	
  )%

  	
  (25.6

  	
  )%

  	
  (2.1

  	
  )%

  	
  N/A

  	
   

  	
  (62.3

  	
  )%

  	
  (140.8

  	
  )%

  	
  5.9

  	
  %

  	
  (150.1

  	
  )%

  	
  (138.3

  	
  )%

  	
  (101.6

  	
  )%

  	
  (318.4

  	
  )%

  	
  SMALLER

  	
   

  
	
  Gross cash flow

  	
   

  	
  (212.7

  	
  )%

  	
  (489.5

  	
  )%

  	
  (24.7

  	
  )%

  	
  1.4

  	
  %

  	
  N/A

  	
   

  	
  (61.2

  	
  )%

  	
  (133.0

  	
  )%

  	
  7.8

  	
  %

  	
  (142.7

  	
  )%

  	
  (131.8

  	
  )%

  	
  (97.1

  	
  )%

  	
  (318.1

  	
  )%

  	
  SMALLER

  	
   

  
	
  Capital
  expenditures

  	
   

  	
  27.0

  	
  %

  	
  49.2

  	
  %

  	
  8.2

  	
  %

  	
  2.3

  	
  %

  	
  N/A

  	
   

  	
  29.4

  	
  %

  	
  9.7

  	
  %

  	
  11.2

  	
  %

  	
  4.0

  	
  %

  	
  17.6

  	
  %

  	
  10.5

  	
  %

  	
  49.2

  	
  %

  	
  LARGER

  	
   

  
	
  Total
  distributions/dividends

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  N/A

  	
   

  	
  0.0

  	
  %

  	
  1.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Selected
  Balance Sheet Data

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cash and
  equivalents

  	
   

  	
  0.9

  	
  %

  	
  1.2

  	
  %

  	
  8.0

  	
  %

  	
  8.8

  	
  %

  	
  61.6

  	
  %

  	
  49.4

  	
  %

  	
  40.5

  	
  %

  	
  44.7

  	
  %

  	
  46.3

  	
  %

  	
  29.0

  	
  %

  	
  40.5

  	
  %

  	
  1.2

  	
  %

  	
  SMALLER

  	
   

  
	
  Investments

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  25.0

  	
  %

  	
  2.8

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  SIMILAR

  	
   

  
	
  Accounts
  receivable

  	
   

  	
  3.8

  	
  %

  	
  1.2

  	
  %

  	
  12.1

  	
  %

  	
  24.7

  	
  %

  	
  0.0

  	
  %

  	
  4.5

  	
  %

  	
  6.2

  	
  %

  	
  6.5

  	
  %

  	
  1.1

  	
  %

  	
  6.7

  	
  %

  	
  4.5

  	
  %

  	
  1.2

  	
  %

  	
  SMALLER

  	
   

  
	
  Inventory

  	
   

  	
  1.1

  	
  %

  	
  0.5

  	
  %

  	
  1.2

  	
  %

  	
  26.5

  	
  %

  	
  0.0

  	
  %

  	
  1.1

  	
  %

  	
  10.0

  	
  %

  	
  2.4

  	
  %

  	
  0.3

  	
  %

  	
  4.8

  	
  %

  	
  1.1

  	
  %

  	
  0.5

  	
  %

  	
  SMALLER

  	
   

  
	
  Total current
  assets

  	
   

  	
  10.3

  	
  %

  	
  12.2

  	
  %

  	
  23.6

  	
  %

  	
  63.3

  	
  %

  	
  62.1

  	
  %

  	
  56.8

  	
  %

  	
  58.1

  	
  %

  	
  54.2

  	
  %

  	
  73.2

  	
  %

  	
  46.0

  	
  %

  	
  56.8

  	
  %

  	
  12.2

  	
  %

  	
  SMALLER

  	
   

  
	
  Net fixed assets

  	
   

  	
  37.0

  	
  %

  	
  34.9

  	
  %

  	
  3.9

  	
  %

  	
  8.3

  	
  %

  	
  27.5

  	
  %

  	
  18.4

  	
  %

  	
  37.1

  	
  %

  	
  29.1

  	
  %

  	
  12.0

  	
  %

  	
  23.1

  	
  %

  	
  27.5

  	
  %

  	
  34.9

  	
  %

  	
  LARGER

  	
   

  
	
  Total assets

  	
   

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  SIMILAR

  	
   

  
	
  Accounts payable

  	
   

  	
  5.3

  	
  %

  	
  4.8

  	
  %

  	
  10.4

  	
  %

  	
  26.8

  	
  %

  	
  0.1

  	
  %

  	
  5.5

  	
  %

  	
  2.2

  	
  %

  	
  2.3

  	
  %

  	
  0.7

  	
  %

  	
  6.5

  	
  %

  	
  4.8

  	
  %

  	
  4.8

  	
  %

  	
  SIMILAR

  	
   

  
	
  Total current
  liabilities

  	
   

  	
  45.8

  	
  %

  	
  103.2

  	
  %

  	
  13.0

  	
  %

  	
  38.5

  	
  %

  	
  7.6

  	
  %

  	
  8.6

  	
  %

  	
  13.3

  	
  %

  	
  3.7

  	
  %

  	
  2.9

  	
  %

  	
  26.3

  	
  %

  	
  13.0

  	
  %

  	
  103.2

  	
  %

  	
  LARGER

  	
   

  
	
  Total interest
  bearing debt

  	
   

  	
  22.3

  	
  %

  	
  10.8

  	
  %

  	
  4.9

  	
  %

  	
  6.2

  	
  %

  	
  1.0

  	
  %

  	
  0.8

  	
  %

  	
  42.6

  	
  %

  	
  29.8

  	
  %

  	
  0.5

  	
  %

  	
  13.2

  	
  %

  	
  6.2

  	
  %

  	
  10.8

  	
  %

  	
  LARGER

  	
   

  
	
  Total liabilities

  	
   

  	
  62.0

  	
  %

  	
  103.2

  	
  %

  	
  81.1

  	
  %

  	
  46.8

  	
  %

  	
  8.4

  	
  %

  	
  8.6

  	
  %

  	
  49.3

  	
  %

  	
  36.6

  	
  %

  	
  2.9

  	
  %

  	
  44.3

  	
  %

  	
  46.8

  	
  %

  	
  103.2

  	
  %

  	
  LARGER

  	
   

  
	
  Total equity

  	
   

  	
  37.7

  	
  %

  	
  (3.2

  	
  )%

  	
  18.9

  	
  %

  	
  51.6

  	
  %

  	
  91.6

  	
  %

  	
  91.4

  	
  %

  	
  50.7

  	
  %

  	
  63.4

  	
  %

  	
  97.1

  	
  %

  	
  55.5

  	
  %

  	
  51.6

  	
  %

  	
  (3.2

  	
  )%

  	
  SMALLER

  	
   

  
	
  Net working
  capital

  	
   

  	
  (35.4

  	
  )%

  	
  (91.0

  	
  )%

  	
  10.7

  	
  %

  	
  24.8

  	
  %

  	
  54.5

  	
  %

  	
  48.3

  	
  %

  	
  44.8

  	
  %

  	
  50.5

  	
  %

  	
  70.3

  	
  %

  	
  19.7

  	
  %

  	
  44.8

  	
  %

  	
  (91.0

  	
  )%

  	
  SMALLER

  	
   

  
	
  Working capital
  excluding cash and debt

  	
   

  	
  (28.4

  	
  )%

  	
  (81.4

  	
  )%

  	
  5.0

  	
  %

  	
  18.4

  	
  %

  	
  (7.0

  	
  )%

  	
  (0.4

  	
  )%

  	
  11.1

  	
  %

  	
  5.9

  	
  %

  	
  (0.6

  	
  )%

  	
  (8.6

  	
  )%

  	
  (0.4

  	
  )%

  	
  (81.4

  	
  )%

  	
  SMALLER

  	
   

  

 

Note:  All data based on latest 12
months financial data.

 

 

Earth
Biofuels Inc.

Comparative
Ratio Analysis

 

Ticker Definitions:

AOOR
= Apollo Resources International

EBOF
= Earth Biofuels Inc.

EPG
= Environmental Power Corp.

FSYS
= Fuel Systems Solutions, Inc.

GPRE
= Green Plains Renewable Energy Inc.

PEIX
= Pacific Ethanol, Inc.

RTK
= Rentech, Inc.

VSE
= Verasun Energy, Corp.

XNL = Xethanol Corporation

 

	
  Public Company

  	
   

  	
  AOOR

  	
   

  	
  EBOF

  	
   

  	
  EPG

  	
   

  	
  FSYS

  	
   

  	
  GPRE

  	
   

  	
  PEIX

  	
   

  	
  RTK

  	
   

  	
  VSE

  	
   

  	
  XNL

  	
   

  	
  Mean

  	
   

  	
  Median

  	
   

  	
  Earth Biofuels

  	
   

  	
  Comparability

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Liquidity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Current ratio

  	
   

  	
  0.2

  	
   

  	
  0.1

  	
   

  	
  1.8

  	
   

  	
  1.6

  	
   

  	
  8.2

  	
   

  	
  6.6

  	
   

  	
  4.4

  	
   

  	
  14.8

  	
   

  	
  25.3

  	
   

  	
  7.0

  	
   

  	
  4.4

  	
   

  	
  0.1

  	
   

  	
  SMALLER

  	
   

  
	
  Quick ratio

  	
   

  	
  0.1

  	
   

  	
  0.0

  	
   

  	
  1.5

  	
   

  	
  0.9

  	
   

  	
  8.1

  	
   

  	
  6.3

  	
   

  	
  3.5

  	
   

  	
  14.0

  	
   

  	
  25.0

  	
   

  	
  6.6

  	
   

  	
  3.5

  	
   

  	
  0.0

  	
   

  	
  SMALLER

  	
   

  
	
  Net working
  capital turnover

  	
   

  	
  -0.7

  	
  x

  	
  -0.2

  	
  x

  	
  4.2

  	
  x

  	
  4.3

  	
  x

  	
  0.0

  	
  x

  	
  1.1

  	
  x

  	
  0.4

  	
  x

  	
  1.2

  	
  x

  	
  0.3

  	
  x

  	
  1.2

  	
  x

  	
  0.4

  	
  x

  	
  -0.2

  	
  x

  	
  SMALLER

  	
   

  
	
  Net working
  capital-to-revenue

  	
   

  	
  (151.4

  	
  )%

  	
  (497.3

  	
  )%

  	
  23.9

  	
  %

  	
  23.2

  	
  %

  	
  N/A

  	
   

  	
  92.8

  	
  %

  	
  285.2

  	
  %

  	
  84.1

  	
  %

  	
  393.1

  	
  %

  	
  31.7

  	
  %

  	
  54.0

  	
  %

  	
  (497.3

  	
  )%

  	
  SMALLER

  	
   

  
	
  Working
  capital-to-revenue excluding cash and debt

  	
   

  	
  (121.5

  	
  )%

  	
  (444.7

  	
  )%

  	
  11.2

  	
  %

  	
  17.2

  	
  %

  	
  N/A

  	
   

  	
  (0.8

  	
  )%

  	
  70.6

  	
  %

  	
  9.8

  	
  %

  	
  (3.5

  	
  )%

  	
  (57.7

  	
  )%

  	
  4.5

  	
  %

  	
  (444.7

  	
  )%

  	
  SMALLER

  	
   

  
	
  Cash-to-revenue

  	
   

  	
  3.7

  	
  %

  	
  6.4

  	
  %

  	
  17.9

  	
  %

  	
  8.2

  	
  %

  	
  N/A

  	
   

  	
  95.1

  	
  %

  	
  258.0

  	
  %

  	
  74.4

  	
  %

  	
  259.0

  	
  %

  	
  90.3

  	
  %

  	
  46.1

  	
  %

  	
  6.4

  	
  %

  	
  SMALLER

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Asset mix

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cash-to-total
  assets

  	
   

  	
  0.9

  	
  %

  	
  1.2

  	
  %

  	
  8.0

  	
  %

  	
  8.8

  	
  %

  	
  61.6

  	
  %

  	
  49.4

  	
  %

  	
  40.5

  	
  %

  	
  44.7

  	
  %

  	
  46.3

  	
  %

  	
  29.0

  	
  %

  	
  40.5

  	
  %

  	
  1.2

  	
  %

  	
  SMALLER

  	
   

  
	
  Accounts
  receivable-to-total assets

  	
   

  	
  3.8

  	
  %

  	
  1.2

  	
  %

  	
  12.1

  	
  %

  	
  24.7

  	
  %

  	
  0.0

  	
  %

  	
  4.5

  	
  %

  	
  6.2

  	
  %

  	
  6.5

  	
  %

  	
  1.1

  	
  %

  	
  6.7

  	
  %

  	
  4.5

  	
  %

  	
  1.2

  	
  %

  	
  SMALLER

  	
   

  
	
  Inventory-to-total
  assets

  	
   

  	
  1.1

  	
  %

  	
  0.5

  	
  %

  	
  1.2

  	
  %

  	
  26.5

  	
  %

  	
  0.0

  	
  %

  	
  1.1

  	
  %

  	
  10.0

  	
  %

  	
  2.4

  	
  %

  	
  0.3

  	
  %

  	
  4.8

  	
  %

  	
  1.1

  	
  %

  	
  0.5

  	
  %

  	
  SMALLER

  	
   

  
	
  Net fixed
  assets-to-total assets

  	
   

  	
  37.0

  	
  %

  	
  34.9

  	
  %

  	
  3.9

  	
  %

  	
  8.3

  	
  %

  	
  27.5

  	
  %

  	
  18.4

  	
  %

  	
  37.1

  	
  %

  	
  29.1

  	
  %

  	
  12.0

  	
  %

  	
  23.1

  	
  %

  	
  27.5

  	
  %

  	
  34.9

  	
  %

  	
  LARGER

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Activity

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Inventory
  turnover

  	
   

  	
  24.3

  	
  x

  	
  32.7

  	
  x

  	
  39.1

  	
  x

  	
  2.9

  	
  x

  	
  N/A

  	
   

  	
  46.6

  	
  x

  	
  1.5

  	
  x

  	
  17.3

  	
  x

  	
  51.6

  	
  x

  	
  27.0

  	
  x

  	
  28.5

  	
  x

  	
  32.7

  	
  x

  	
  LARGER

  	
   

  
	
  Inventory days

  	
   

  	
  15.0

  	
   

  	
  11.2

  	
   

  	
  9.3

  	
   

  	
  125.0

  	
   

  	
  N/A

  	
   

  	
  7.8

  	
   

  	
  245.2

  	
   

  	
  21.0

  	
   

  	
  7.1

  	
   

  	
  55.2

  	
   

  	
  13.1

  	
   

  	
  11.2

  	
   

  	
  SMALLER

  	
   

  
	
  Accounts
  receivable turnover

  	
   

  	
  6.2

  	
  x

  	
  15.0

  	
  x

  	
  3.7

  	
  x

  	
  4.3

  	
  x

  	
  N/A

  	
   

  	
  11.5

  	
  x

  	
  2.5

  	
  x

  	
  9.3

  	
  x

  	
  15.6

  	
  x

  	
  8.5

  	
  x

  	
  7.8

  	
  x

  	
  15.0

  	
  x

  	
  LARGER

  	
   

  
	
  Accounts
  receivable days

  	
   

  	
  58.8

  	
   

  	
  24.4

  	
   

  	
  99.1

  	
   

  	
  84.5

  	
   

  	
  N/A

  	
   

  	
  31.7

  	
   

  	
  144.3

  	
   

  	
  39.2

  	
   

  	
  23.4

  	
   

  	
  63.2

  	
   

  	
  49.0

  	
   

  	
  24.4

  	
   

  	
  SMALLER

  	
   

  
	
  Accounts payable
  turnover

  	
   

  	
  5.0

  	
  x

  	
  3.6

  	
  x

  	
  4.4

  	
  x

  	
  2.9

  	
  x

  	
  13.8

  	
  x

  	
  8.9

  	
  x

  	
  6.6

  	
  x

  	
  18.5

  	
  x

  	
  25.3

  	
  x

  	
  9.9

  	
  x

  	
  6.6

  	
  x

  	
  3.6

  	
  x

  	
  SMALLER

  	
   

  
	
  Accounts payable
  days

  	
   

  	
  73.3

  	
   

  	
  101.0

  	
   

  	
  83.2

  	
   

  	
  126.5

  	
   

  	
  26.4

  	
   

  	
  41.0

  	
   

  	
  55.1

  	
   

  	
  19.7

  	
   

  	
  14.4

  	
   

  	
  60.1

  	
   

  	
  55.1

  	
   

  	
  101.0

  	
   

  	
  LARGER

  	
   

  
	
  Net trade cycle

  	
   

  	
  0.5

  	
   

  	
  (65.5

  	
  )

  	
  25.3

  	
   

  	
  82.9

  	
   

  	
  N/A

  	
   

  	
  (1.5

  	
  )

  	
  334.4

  	
   

  	
  40.6

  	
   

  	
  16.0

  	
   

  	
  54.1

  	
   

  	
  20.7

  	
   

  	
  (65.5

  	
  )

  	
  SMALLER

  	
   

  
	
  Asset turnover

  	
   

  	
  0.2

  	
  x

  	
  0.2

  	
  x

  	
  0.4

  	
  x

  	
  1.1

  	
  x

  	
  0.0

  	
  x

  	
  0.5

  	
  x

  	
  0.2

  	
  x

  	
  0.6

  	
  x

  	
  0.2

  	
  x

  	
  0.4

  	
  x

  	
  0.2

  	
  x

  	
  0.2

  	
  x

  	
  SMALLER

  	
   

  
	
  Fixed asset
  turnover

  	
   

  	
  0.6

  	
  x

  	
  0.5

  	
  x

  	
  11.5

  	
  x

  	
  12.9

  	
  x

  	
  0.0

  	
  x

  	
  2.8

  	
  x

  	
  0.4

  	
  x

  	
  2.1

  	
  x

  	
  1.5

  	
  x

  	
  3.6

  	
  x

  	
  1.5

  	
  x

  	
  0.5

  	
  x

  	
  SMALLER

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Leverage

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total
  assets-to-equity

  	
   

  	
  2.6

  	
  x

  	
  -31.3

  	
  x

  	
  5.3

  	
  x

  	
  1.9

  	
  x

  	
  1.1

  	
  x

  	
  1.1

  	
  x

  	
  2.0

  	
  x

  	
  1.6

  	
  x

  	
  1.0

  	
  x

  	
  -1.6

  	
  x

  	
  1.6

  	
  x

  	
  -31.3

  	
  x

  	
  SMALLER

  	
   

  
	
  Total
  liabilities-to-equity

  	
   

  	
  1.6

  	
  x

  	
  -32.3

  	
  x

  	
  4.3

  	
  x

  	
  0.9

  	
  x

  	
  0.1

  	
  x

  	
  0.1

  	
  x

  	
  1.0

  	
  x

  	
  0.6

  	
  x

  	
  0.0

  	
  x

  	
  -2.6

  	
  x

  	
  0.6

  	
  x

  	
  -32.3

  	
  x

  	
  SMALLER

  	
   

  
	
  Total
  debt-to-equity

  	
   

  	
  0.6

  	
  x

  	
  -3.4

  	
  x

  	
  0.3

  	
  x

  	
  0.1

  	
  x

  	
  0.0

  	
  x

  	
  0.0

  	
  x

  	
  0.8

  	
  x

  	
  0.5

  	
  x

  	
  0.0

  	
  x

  	
  -0.1

  	
  x

  	
  0.1

  	
  x

  	
  -3.4

  	
  x

  	
  SMALLER

  	
   

  
	
  Interest coverage

  	
   

  	
  -7.2

  	
  x

  	
  -2.6

  	
  x

  	
  -21.6

  	
  x

  	
  15.0

  	
  x

  	
  N/A

  	
   

  	
  -46.8

  	
  x

  	
  -11.2

  	
  x

  	
  3.6

  	
  x

  	
  -12.7

  	
  x

  	
  -10.4

  	
  x

  	
  -9.2

  	
  x

  	
  -9.6

  	
  x

  	
  SMALLER

  	
   

  

 

Note:  All data based on latest 12
months financial data.

 

 

Earth
Biofuels Inc.

Comparative
Ratio Analysis

 

Ticker Definitions:

AOOR
= Apollo Resources International

EBOF
= Earth Biofuels Inc.

EPG
= Environmental Power Corp.

FSYS
= Fuel Systems Solutions, Inc.

GPRE
= Green Plains Renewable Energy Inc.

PEIX
= Pacific Ethanol, Inc.

RTK
= Rentech, Inc.

VSE
= Verasun Energy, Corp.

XNL = Xethanol Corporation

 

	
  Public Company

  	
   

  	
  AOOR

  	
   

  	
  EBOF

  	
   

  	
  EPG

  	
   

  	
  FSYS

  	
   

  	
  GPRE

  	
   

  	
  PEIX

  	
   

  	
  RTK

  	
   

  	
  VSE

  	
   

  	
  XNL

  	
   

  	
  Mean

  	
   

  	
  Median

  	
   

  	
  Earth Biofuels

  	
   

  	
  Comparability

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Profitability

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gross profit
  margin

  	
   

  	
  (13.6

  	
  )%

  	
  6.2

  	
  %

  	
  (2.6

  	
  )%

  	
  27.4

  	
  %

  	
  N/A

  	
   

  	
  5.8

  	
  %

  	
  5.4

  	
  %

  	
  30.3

  	
  %

  	
  3.2

  	
  %

  	
  7.8

  	
  %

  	
  5.6

  	
  %

  	
  6.2

  	
  %

  	
  SIMILAR

  	
   

  
	
  Operating
  expenses-to-revenue

  	
   

  	
  229.6

  	
  %

  	
  443.1

  	
  %

  	
  23.7

  	
  %

  	
  20.4

  	
  %

  	
  N/A

  	
   

  	
  10.9

  	
  %

  	
  132.1

  	
  %

  	
  8.4

  	
  %

  	
  97.1

  	
  %

  	
  120.7

  	
  %

  	
  60.4

  	
  %

  	
  443.1

  	
  %

  	
  LARGER

  	
   

  
	
  Operating margin

  	
   

  	
  (243.1

  	
  )%

  	
  (436.9

  	
  )%

  	
  (26.3

  	
  )%

  	
  7.0

  	
  %

  	
  N/A

  	
   

  	
  (5.1

  	
  )%

  	
  (126.7

  	
  )%

  	
  21.9

  	
  %

  	
  (93.9

  	
  )%

  	
  (112.9

  	
  )%

  	
  (60.1

  	
  )%

  	
  (436.9

  	
  )%

  	
  SMALLER

  	
   

  
	
  EBITDA-to-revenue

  	
   

  	
  (114.2

  	
  )%

  	
  (121.8

  	
  )%

  	
  (21.8

  	
  )%

  	
  10.0

  	
  %

  	
  N/A

  	
   

  	
  (4.1

  	
  )%

  	
  (82.7

  	
  )%

  	
  28.8

  	
  %

  	
  (66.6

  	
  )%

  	
  (46.5

  	
  )%

  	
  (44.2

  	
  )%

  	
  (443.4

  	
  )%

  	
  SMALLER

  	
   

  
	
  EBIT-to-revenue

  	
   

  	
  (143.0

  	
  )%

  	
  (122.0

  	
  )%

  	
  (22.7

  	
  )%

  	
  6.5

  	
  %

  	
  N/A

  	
   

  	
  (5.2

  	
  )%

  	
  (90.5

  	
  )%

  	
  26.9

  	
  %

  	
  (73.9

  	
  )%

  	
  (53.0

  	
  )%

  	
  (48.3

  	
  )%

  	
  (443.6

  	
  )%

  	
  SMALLER

  	
   

  
	
  Pretax
  income-to-revenue

  	
   

  	
  (241.4

  	
  )%

  	
  (489.8

  	
  )%

  	
  (25.8

  	
  )%

  	
  5.5

  	
  %

  	
  N/A

  	
   

  	
  (62.3

  	
  )%

  	
  (139.8

  	
  )%

  	
  10.3

  	
  %

  	
  (150.1

  	
  )%

  	
  (136.7

  	
  )%

  	
  (101.1

  	
  )%

  	
  (489.8

  	
  )%

  	
  SMALLER

  	
   

  
	
  Pretax
  income-to-equity

  	
   

  	
  (149.7

  	
  )%

  	
  2802.7

  	
  %

  	
  (60.6

  	
  )%

  	
  11.4

  	
  %

  	
  0.2

  	
  %

  	
  (35.4

  	
  )%

  	
  (43.3

  	
  )%

  	
  9.8

  	
  %

  	
  (27.6

  	
  )%

  	
  278.6

  	
  %

  	
  (27.6

  	
  )%

  	
  2802.5

  	
  %

  	
  LARGER

  	
   

  
	
  Pretax
  income-to-total assets

  	
   

  	
  (56.5

  	
  )%

  	
  (89.6

  	
  )%

  	
  (11.5

  	
  )%

  	
  5.9

  	
  %

  	
  0.2

  	
  %

  	
  (32.4

  	
  )%

  	
  (22.0

  	
  )%

  	
  6.2

  	
  %

  	
  (26.8

  	
  )%

  	
  (25.2

  	
  )%

  	
  (22.0

  	
  )%

  	
  (89.6

  	
  )%

  	
  SMALLER

  	
   

  
	
  Net
  income-to-revenue

  	
   

  	
  (241.4

  	
  )%

  	
  (489.8

  	
  )%

  	
  (25.6

  	
  )%

  	
  (2.1

  	
  )%

  	
  N/A

  	
   

  	
  (62.3

  	
  )%

  	
  (140.8

  	
  )%

  	
  5.9

  	
  %

  	
  (150.1

  	
  )%

  	
  (138.3

  	
  )%

  	
  (101.6

  	
  )%

  	
  (318.4

  	
  )%

  	
  SMALLER

  	
   

  
	
  Net
  income-to-equity

  	
   

  	
  (149.7

  	
  )%

  	
  2802.7

  	
  %

  	
  (60.2

  	
  )%

  	
  (4.4

  	
  )%

  	
  0.2

  	
  %

  	
  (35.4

  	
  )%

  	
  (43.6

  	
  )%

  	
  5.6

  	
  %

  	
  (27.6

  	
  )%

  	
  276.4

  	
  %

  	
  (27.6

  	
  )%

  	
  1821.6

  	
  %

  	
  LARGER

  	
   

  
	
  Net
  income-to-total assets

  	
   

  	
  (56.5

  	
  )%

  	
  (89.6

  	
  )%

  	
  (11.4

  	
  )%

  	
  (2.3

  	
  )%

  	
  0.2

  	
  %

  	
  (32.4

  	
  )%

  	
  (22.1

  	
  )%

  	
  3.5

  	
  %

  	
  (26.8

  	
  )%

  	
  (26.4

  	
  )%

  	
  (22.1

  	
  )%

  	
  (58.3

  	
  )%

  	
  SMALLER

  	
   

  
	
  Gross cash
  flow-to-revenue

  	
   

  	
  (212.7

  	
  )%

  	
  (489.5

  	
  )%

  	
  (24.7

  	
  )%

  	
  1.4

  	
  %

  	
  N/A

  	
   

  	
  (61.2

  	
  )%

  	
  (133.0

  	
  )%

  	
  7.8

  	
  %

  	
  (142.7

  	
  )%

  	
  (131.8

  	
  )%

  	
  (97.1

  	
  )%

  	
  (318.1

  	
  )%

  	
  SMALLER

  	
   

  
	
  Effective tax
  rate

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.6

  	
  %

  	
  138.9

  	
  %

  	
  0.0

  	
  %

  	
  (0.0

  	
  )%

  	
  (0.7

  	
  )%

  	
  42.9

  	
  %

  	
  0.0

  	
  %

  	
  20.2

  	
  %

  	
  0.0

  	
  %

  	
  35.0

  	
  %

  	
  LARGER

  	
   

  
	
  Dividends-to-net
  income

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  (0.7

  	
  )%

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  (0.1

  	
  )%

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  SIMILAR

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Depreciation & capital exp.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Depreciation-to-revenue

  	
   

  	
  28.8

  	
  %

  	
  0.2

  	
  %

  	
  1.0

  	
  %

  	
  3.5

  	
  %

  	
  N/A

  	
   

  	
  1.1

  	
  %

  	
  7.8

  	
  %

  	
  2.0

  	
  %

  	
  7.3

  	
  %

  	
  6.5

  	
  %

  	
  2.7

  	
  %

  	
  0.2

  	
  %

  	
  SMALLER

  	
   

  
	
  Capital
  expenditures-to-revenue

  	
   

  	
  27.0

  	
  %

  	
  49.2

  	
  %

  	
  8.2

  	
  %

  	
  2.3

  	
  %

  	
  N/A

  	
   

  	
  29.4

  	
  %

  	
  9.7

  	
  %

  	
  11.2

  	
  %

  	
  4.0

  	
  %

  	
  17.6

  	
  %

  	
  10.5

  	
  %

  	
  49.2

  	
  %

  	
  LARGER

  	
   

  
	
  Capital
  expenditures-to-depreciation

  	
   

  	
  0.9

  	
  x

  	
  201.3

  	
  x

  	
  8.5

  	
  x

  	
  0.7

  	
  x

  	
  1320.8

  	
  x

  	
  26.6

  	
  x

  	
  1.2

  	
  x

  	
  5.7

  	
  x

  	
  0.6

  	
  x

  	
  174.0

  	
  x

  	
  5.7

  	
  x

  	
  198.9

  	
  x

  	
  LARGER

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dupont analysis

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net
  income-to-pretax income

  	
   

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  99.4

  	
  %

  	
  (38.9

  	
  )%

  	
  100.0

  	
  %

  	
  100.0

  	
  %

  	
  100.7

  	
  %

  	
  57.1

  	
  %

  	
  100.0

  	
  %

  	
  79.8

  	
  %

  	
  100.0

  	
  %

  	
  65.0

  	
  %

  	
  SMALLER

  	
   

  
	
  Pretax
  income-to-EBIT

  	
   

  	
  168.9

  	
  %

  	
  401.4

  	
  %

  	
  113.6

  	
  %

  	
  84.8

  	
  %

  	
  (7.9

  	
  )%

  	
  1201.2

  	
  %

  	
  154.5

  	
  %

  	
  38.4

  	
  %

  	
  203.1

  	
  %

  	
  262.0

  	
  %

  	
  154.5

  	
  %

  	
  110.4

  	
  %

  	
  SMALLER

  	
   

  
	
  EBIT-to-revenue

  	
   

  	
  (143.0

  	
  )%

  	
  (122.0

  	
  )%

  	
  (22.7

  	
  )%

  	
  6.5

  	
  %

  	
  N/A

  	
   

  	
  (5.2

  	
  )%

  	
  (90.5

  	
  )%

  	
  26.9

  	
  %

  	
  (73.9

  	
  )%

  	
  (53.0

  	
  )%

  	
  (48.3

  	
  )%

  	
  (443.6

  	
  )%

  	
  SMALLER

  	
   

  
	
  Revenue-to-total
  assets

  	
   

  	
  23.4

  	
  %

  	
  18.3

  	
  %

  	
  44.5

  	
  %

  	
  106.7

  	
  %

  	
  0.0

  	
  %

  	
  52.0

  	
  %

  	
  15.7

  	
  %

  	
  60.1

  	
  %

  	
  17.9

  	
  %

  	
  37.6

  	
  %

  	
  23.4

  	
  %

  	
  18.3

  	
  %

  	
  SMALLER

  	
   

  
	
  Total
  assets-to-equity

  	
   

  	
  264.9

  	
  %

  	
  (3126.6

  	
  )%

  	
  528.1

  	
  %

  	
  193.6

  	
  %

  	
  109.2

  	
  %

  	
  109.4

  	
  %

  	
  197.1

  	
  %

  	
  157.6

  	
  %

  	
  103.0

  	
  %

  	
  (162.6

  	
  )%

  	
  157.6

  	
  %

  	
  (3126.2

  	
  )%

  	
  SMALLER

  	
   

  
	
  Return on equity

  	
   

  	
  (149.7

  	
  )%

  	
  2802.7

  	
  %

  	
  (60.2

  	
  )%

  	
  (4.4

  	
  )%

  	
  N/A

  	
   

  	
  (35.4

  	
  )%

  	
  (43.6

  	
  )%

  	
  5.6

  	
  %

  	
  (27.6

  	
  )%

  	
  310.9

  	
  %

  	
  (31.5

  	
  )%

  	
  1821.6

  	
  %

  	
  LARGER

  	
   

  

 

Note:  All data based on latest 12
months financial data.

 

 

Exhibit 15

Earth Biofuels Inc.

Forecast

 

	
   

  	
   

  	
  FYE

  	
   

  	
  Remaining

  	
   

  	
  Projected

  	
   

  
	
   

  	
   

  	
  Dec. 31,

  	
   

  	
  3 Months

  	
   

  	
  December 31,

  	
   

  
	
  (in thousands of $ unless otherwise noted)

  	
   

  	
  2005

  	
   

  	
  2006

  	
   

  	
  2007

  	
   

  	
  2008

  	
   

  	
  2009

  	
   

  	
  2010

  	
   

  	
  2011

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total revenue,
  net

  	
   

  	
  1,943.5

  	
   

  	
  13,466.1

  	
   

  	
  240,325.0

  	
   

  	
  1,059,462.4

  	
   

  	
  1,349,072.1

  	
   

  	
  1,618,886.5

  	
   

  	
  1,861,719.5

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total cost of
  goods sold

  	
   

  	
  1,859.0

  	
   

  	
  10,769.3

  	
   

  	
  189,453.8

  	
   

  	
  839,398.4

  	
   

  	
  1,058,194.8

  	
   

  	
  1,269,207.0

  	
   

  	
  1,459,588.1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gross profit

  	
   

  	
  84.5

  	
   

  	
  2,696.9

  	
   

  	
  50,871.2

  	
   

  	
  220,064.1

  	
   

  	
  290,877.2

  	
   

  	
  349,679.5

  	
   

  	
  402,131.4

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Operating
  expenses:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Selling, general
  and administrative expenses

  	
   

  	
  1,406.0

  	
   

  	
  5,363.1

  	
   

  	
  58,368.6

  	
   

  	
  81,963.4

  	
   

  	
  52,943.5

  	
   

  	
  63,136.6

  	
   

  	
  72,607.1

  	
   

  
	
  Corporate
  overhead

  	
   

  	
  0.0

  	
   

  	
  3,000.0

  	
   

  	
  12,000.0

  	
   

  	
  12,000.0

  	
   

  	
  12,000.0

  	
   

  	
  14,570.0

  	
   

  	
  16,755.5

  	
   

  
	
  Total operating
  expenses

  	
   

  	
  10,539.0

  	
   

  	
  8,363.1

  	
   

  	
  70,368.6

  	
   

  	
  93,963.4

  	
   

  	
  64,943.5

  	
   

  	
  77,706.6

  	
   

  	
  89,362.5

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Operating income

  	
   

  	
  (10,454.4

  	
  )

  	
  (5,666.2

  	
  )

  	
  (19,497.3

  	
  )

  	
  126,100.7

  	
   

  	
  225,933.8

  	
   

  	
  271,972.9

  	
   

  	
  312,768.9

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other income
  (expense)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Interest expense

  	
   

  	
  0.0

  	
   

  	
  (180.4

  	
  )

  	
  (634.3

  	
  )

  	
  (594.0

  	
  )

  	
  (592.5

  	
  )

  	
  (591.0

  	
  )

  	
  (679.5

  	
  )

  
	
  Minority interest

  	
   

  	
  0.0

  	
   

  	
  (1,794.9

  	
  )

  	
  (16,118.0

  	
  )

  	
  (2,261.3

  	
  )

  	
  94,399.3

  	
   

  	
  113,322.1

  	
   

  	
  130,320.4

  	
   

  
	
  Total other
  income (expense)

  	
   

  	
  0.9

  	
   

  	
  (1,975.3

  	
  )

  	
  (16,752.3

  	
  )

  	
  (2,855.2

  	
  )

  	
  93,806.8

  	
   

  	
  112,731.1

  	
   

  	
  129,640.8

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Invested capital
  pretax income

  	
   

  	
  (10,453.6

  	
  )

  	
  (3,690.9

  	
  )

  	
  (2,745.0

  	
  )

  	
  128,955.9

  	
   

  	
  132,127.0

  	
   

  	
  159,241.8

  	
   

  	
  183,128.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Income tax
  expense

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  39,223.2

  	
   

  	
  46,244.4

  	
   

  	
  55,734.6

  	
   

  	
  64,094.8

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Invested capital
  income

  	
   

  	
  (10,453.6

  	
  )

  	
  (3,690.9

  	
  )

  	
  (2,745.0

  	
  )

  	
  89,732.6

  	
   

  	
  85,882.5

  	
   

  	
  103,507.2

  	
   

  	
  119,033.2

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net
  operating loss tax benefit:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NOL available

  	
   

  	
  0.0

  	
   

  	
  10,453.6

  	
   

  	
  14,144.4

  	
   

  	
  16,889.5

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
  NOL applied
  (accrued)

  	
   

  	
  (10,453.6

  	
  )

  	
  (3,690.9

  	
  )

  	
  (2,745.0

  	
  )

  	
  16,889.5

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
  NOL remaining

  	
   

  	
  10,453.6

  	
   

  	
  14,144.4

  	
   

  	
  16,889.5

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Additional items:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EBITDA

  	
   

  	
  (10,448.8

  	
  )

  	
  (3,320.4

  	
  )

  	
  11,132.9

  	
   

  	
  282,818.4

  	
   

  	
  395,520.6

  	
   

  	
  475,515.7

  	
   

  	
  546,842.9

  	
   

  
	
  EBIT

  	
   

  	
  (10,453.6

  	
  )

  	
  (3,510.5

  	
  )

  	
  (2,110.7

  	
  )

  	
  129,549.8

  	
   

  	
  132,719.5

  	
   

  	
  159,832.8

  	
   

  	
  183,807.6

  	
   

  
	
  Depreciation and amortization

  	
   

  	
  4.8

  	
   

  	
  190.1

  	
   

  	
  13,243.6

  	
   

  	
  153,268.6

  	
   

  	
  262,801.1

  	
   

  	
  315,682.9

  	
   

  	
  363,035.3

  	
   

  
	
  Capital
  expenditures

  	
   

  	
  443.8

  	
   

  	
  138,470.0

  	
   

  	
  294,627.5

  	
   

  	
  110,227.5

  	
   

  	
  288,283.3

  	
   

  	
  346,441.7

  	
   

  	
  398,408.0

  	
   

  
	
  Working capital
  excluding cash and debt

  	
   

  	
  (5,727.2

  	
  )

  	
  1,201.8

  	
   

  	
  (266.5

  	
  )

  	
  19,078.9

  	
   

  	
  4,816.7

  	
   

  	
  6,475.5

  	
   

  	
  7,446.9

  	
   

  
	
  Decrease
  (increase) in net working capital

  	
   

  	
  5,727.2

  	
   

  	
  (372.6

  	
  )

  	
  1,468.3

  	
   

  	
  (19,345.4

  	
  )

  	
  14,262.2

  	
   

  	
  (1,658.9

  	
  )

  	
  (971.3

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Assumptions:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Revenue growth

  	
   

  	
  NMF

  	
   

  	
  NMF

  	
   

  	
  942.9

  	
  %

  	
  340.8

  	
  %

  	
  27.3

  	
  %

  	
  20.0

  	
  %

  	
  15.0

  	
  %

  
	
  Gross margin

  	
   

  	
  4.4

  	
  %

  	
  20.0

  	
  %

  	
  21.2

  	
  %

  	
  20.8

  	
  %

  	
  21.6

  	
  %

  	
  21.6

  	
  %

  	
  21.6

  	
  %

  
	
  Operating
  expenses:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Selling, general
  and administrative expenses

  	
   

  	
  72.3

  	
  %

  	
  39.8

  	
  %

  	
  24.3

  	
  %

  	
  7.7

  	
  %

  	
  3.9

  	
  %

  	
  3.9

  	
  %

  	
  3.9

  	
  %

  
	
  Corporate
  overhead

  	
   

  	
  0.0

  	
  %

  	
  22.3

  	
  %

  	
  5.0

  	
  %

  	
  1.1

  	
  %

  	
  0.9

  	
  %

  	
  0.9

  	
  %

  	
  0.9

  	
  %

  
	
  Other income
  (expense)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Interest expense

  	
   

  	
  0.0

  	
  %

  	
  (1.3

  	
  )%

  	
  (0.3

  	
  )%

  	
  (0.1

  	
  )%

  	
  (0.0

  	
  )%

  	
  (0.0

  	
  )%

  	
  (0.0

  	
  )%

  
	
  Minority interest

  	
   

  	
  0.0

  	
  %

  	
  (13.3

  	
  )%

  	
  (6.7

  	
  )%

  	
  (0.2

  	
  )%

  	
  7.0

  	
  %

  	
  7.0

  	
  %

  	
  7.0

  	
  %

  
	
  Tax rate

  	
   

  	
  35.0

  	
  %

  	
  35.0

  	
  %

  	
  35.0

  	
  %

  	
  35.0

  	
  %

  	
  35.0

  	
  %

  	
  35.0

  	
  %

  	
  35.0

  	
  %

  
	
  Depreciation
  & amortization (% of revenue)

  	
   

  	
  0.2

  	
  %

  	
  1.4

  	
  %

  	
  5.5

  	
  %

  	
  14.5

  	
  %

  	
  19.5

  	
  %

  	
  19.5

  	
  %

  	
  19.5

  	
  %

  
	
  Capital
  expenditures (% of revenue)

  	
   

  	
  22.8

  	
  %

  	
  1028.3

  	
  %

  	
  122.6

  	
  %

  	
  10.4

  	
  %

  	
  21.4

  	
  %

  	
  21.4

  	
  %

  	
  21.4

  	
  %

  
	
  Net working
  capital (% of revenue)

  	
   

  	
  117.0

  	
  %

  	
  8.9

  	
  %

  	
  (0.1

  	
  )%

  	
  1.8

  	
  %

  	
  0.4

  	
  %

  	
  0.4

  	
  %

  	
  0.4

  	
  %

  

 

 

Exhibit 16

Earth Biofuels Inc.

Trailing Stock Price Analysis

 

Ticker: EBOF.OB

 

	
  Date

  	
   

  	
  Stock Price

  	
   

  	
  x

  	
   

  	
  Shares Outstanding

  	
   

  	
  =

  	
   

  	
  Market Capitalization

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10/17/2006

  	
   

  	
  $

  	
  2.09

  	
   

  	
   

  	
   

  	
  215,037,000

  	
   

  	
   

  	
   

  	
  $

  	
  449,427,330

  	
   

  
	
  10/16/2006

  	
   

  	
  $

  	
  2.25

  	
   

  	
   

  	
   

  	
  215,037,000

  	
   

  	
   

  	
   

  	
  $

  	
  483,833,250

  	
   

  
	
  10/13/2006

  	
   

  	
  $

  	
  2.28

  	
   

  	
   

  	
   

  	
  215,037,000

  	
   

  	
   

  	
   

  	
  $

  	
  490,284,360

  	
   

  
	
  10/12/2006

  	
   

  	
  $

  	
  2.25

  	
   

  	
   

  	
   

  	
  215,037,000

  	
   

  	
   

  	
   

  	
  $

  	
  483,833,250

  	
   

  
	
  10/11/2006

  	
   

  	
  $

  	
  1.86

  	
   

  	
   

  	
   

  	
  215,037,000

  	
   

  	
   

  	
   

  	
  $

  	
  399,968,820

  	
   

  
	
  10/10/2006

  	
   

  	
  $

  	
  1.58

  	
   

  	
   

  	
   

  	
  215,037,000

  	
   

  	
   

  	
   

  	
  $

  	
  339,758,460

  	
   

  
	
  10/9/2006

  	
   

  	
  $

  	
  1.55

  	
   

  	
   

  	
   

  	
  215,037,000

  	
   

  	
   

  	
   

  	
  $

  	
  333,307,350

  	
   

  
	
  10/6/2006

  	
   

  	
  $

  	
  1.80

  	
   

  	
   

  	
   

  	
  215,037,000

  	
   

  	
   

  	
   

  	
  $

  	
  387,066,600

  	
   

  
	
  10/5/2006

  	
   

  	
  $

  	
  1.91

  	
   

  	
   

  	
   

  	
  215,037,000

  	
   

  	
   

  	
   

  	
  $

  	
  410,720,670

  	
   

  
	
  10/4/2006

  	
   

  	
  $

  	
  1.99

  	
   

  	
   

  	
   

  	
  215,037,000

  	
   

  	
   

  	
   

  	
  $

  	
  427,923,630

  	
   

  
	
  10/3/2006

  	
   

  	
  $

  	
  2.15

  	
   

  	
   

  	
   

  	
  215,037,000

  	
   

  	
   

  	
   

  	
  $

  	
  462,329,550

  	
   

  
	
  10/2/2006

  	
   

  	
  $

  	
  2.25

  	
   

  	
   

  	
   

  	
  215,037,000

  	
   

  	
   

  	
   

  	
  $

  	
  483,833,250

  	
   

  
	
  9/29/2006

  	
   

  	
  $

  	
  2.34

  	
   

  	
   

  	
   

  	
  215,037,000

  	
   

  	
   

  	
   

  	
  $

  	
  503,186,580

  	
   

  
	
  9/28/2006

  	
   

  	
  $

  	
  2.30

  	
   

  	
   

  	
   

  	
  215,037,000

  	
   

  	
   

  	
   

  	
  $

  	
  494,585,100

  	
   

  
	
  9/27/2006

  	
   

  	
  $

  	
  2.32

  	
   

  	
   

  	
   

  	
  215,037,000

  	
   

  	
   

  	
   

  	
  $

  	
  498,885,840

  	
   

  
	
  9/26/2006

  	
   

  	
  $

  	
  2.25

  	
   

  	
   

  	
   

  	
  215,037,000

  	
   

  	
   

  	
   

  	
  $

  	
  483,833,250

  	
   

  
	
  9/25/2006

  	
   

  	
  $

  	
  2.21

  	
   

  	
   

  	
   

  	
  215,037,000

  	
   

  	
   

  	
   

  	
  $

  	
  475,231,770

  	
   

  
	
  9/22/2006

  	
   

  	
  $

  	
  2.35

  	
   

  	
   

  	
   

  	
  215,037,000

  	
   

  	
   

  	
   

  	
  $

  	
  505,336,950

  	
   

  
	
  9/21/2006

  	
   

  	
  $

  	
  2.34

  	
   

  	
   

  	
   

  	
  215,037,000

  	
   

  	
   

  	
   

  	
  $

  	
  503,186,580

  	
   

  
	
  9/20/2006

  	
   

  	
  $

  	
  2.17

  	
   

  	
   

  	
   

  	
  215,037,000

  	
   

  	
   

  	
   

  	
  $

  	
  466,630,290

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  20-day average

  	
   

  	
  $

  	
  2.11

  	
   

  	
   

  	
   

  	
  215,037,000

  	
   

  	
   

  	
   

  	
  $

  	
  454,158,144

  	
   

  

 

 

Exhibit 17

Earth Biofuels Inc.

Discounted Cash Flow Analysis

 

	
   

  	
   

  	
  Remaining

  	
   

  	
  Projected

  	
   

  
	
   

  	
   

  	
  3 months

  	
   

  	
  December 31,

  	
   

  
	
  (in thousands of $ unless otherwise noted)

  	
   

  	
  2006

  	
   

  	
  2007

  	
   

  	
  2008

  	
   

  	
  2009

  	
   

  	
  2010

  	
   

  	
  2011

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total revenue

  	
   

  	
  13,466.1

  	
   

  	
  240,325.0

  	
   

  	
  1,059,462.4

  	
   

  	
  1,349,072.1

  	
   

  	
  1,618,886.5

  	
   

  	
  1,861,719.5

  	
   

  
	
  growth

  	
   

  	
  NMF

  	
   

  	
  942.9

  	
  %

  	
  340.8

  	
  %

  	
  27.3

  	
  %

  	
  20.0

  	
  %

  	
  15.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EBITDA

  	
   

  	
  (3,320.4

  	
  )

  	
  11,132.9

  	
   

  	
  282,818.4

  	
   

  	
  395,520.6

  	
   

  	
  475,515.7

  	
   

  	
  546,842.9

  	
   

  
	
  margin

  	
   

  	
  (24.7

  	
  )%

  	
  4.6

  	
  %

  	
  26.7

  	
  %

  	
  29.3

  	
  %

  	
  29.4

  	
  %

  	
  29.4

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Depreciation and amortization

  	
   

  	
  190.1

  	
   

  	
  13,243.6

  	
   

  	
  153,268.6

  	
   

  	
  262,801.1

  	
   

  	
  315,682.9

  	
   

  	
  363,035.3

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EBIT

  	
   

  	
  (3,510.5

  	
  )

  	
  (2,110.7

  	
  )

  	
  129,549.8

  	
   

  	
  132,719.5

  	
   

  	
  159,832.8

  	
   

  	
  183,807.6

  	
   

  
	
  margin

  	
   

  	
  (26.1

  	
  )%

  	
  (0.9

  	
  )%

  	
  12.2

  	
  %

  	
  9.8

  	
  %

  	
  9.9

  	
  %

  	
  9.9

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Income tax expense

  	
   

  	
  0.0

  	
   

  	
  0.0

  	
   

  	
  39,223.2

  	
   

  	
  46,244.4

  	
   

  	
  55,734.6

  	
   

  	
  64,094.8

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Invested capital net income

  	
   

  	
  (3,510.5

  	
  )

  	
  (2,110.7

  	
  )

  	
  90,326.6

  	
   

  	
  86,475.1

  	
   

  	
  104,098.2

  	
   

  	
  119,712.8

  	
   

  
	
  margin

  	
   

  	
  (26.1

  	
  )%

  	
  (0.9

  	
  )%

  	
  8.5

  	
  %

  	
  6.4

  	
  %

  	
  6.4

  	
  %

  	
  6.4

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Adjustments to cash flow:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Depreciation and amortization

  	
   

  	
  190.1

  	
   

  	
  13,243.6

  	
   

  	
  153,268.6

  	
   

  	
  262,801.1

  	
   

  	
  315,682.9

  	
   

  	
  363,035.3

  	
   

  
	
  Capital expenditures

  	
   

  	
  (138,470.0

  	
  )

  	
  (294,627.5

  	
  )

  	
  (110,227.5

  	
  )

  	
  (288,283.3

  	
  )

  	
  (346,441.7

  	
  )

  	
  (398,408.0

  	
  )

  
	
  Decrease (increase) in working capital

  	
   

  	
  (372.6

  	
  )

  	
  1,468.3

  	
   

  	
  (19,345.4

  	
  )

  	
  14,262.2

  	
   

  	
  (1,658.9

  	
  )

  	
  (971.3

  	
  )

  
	
  Total adjustments to cash flow

  	
   

  	
  (138,652.6

  	
  )

  	
  (279,915.6

  	
  )

  	
  23,695.7

  	
   

  	
  (11,220.0

  	
  )

  	
  (32,417.7

  	
  )

  	
  (36,344.0

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Invested capital cash flow

  	
   

  	
  (142,163.1

  	
  )

  	
  (282,026.3

  	
  )

  	
  114,022.2

  	
   

  	
  75,255.0

  	
   

  	
  71,680.5

  	
   

  	
  83,368.7

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Present value factor @ 35 percent

  	
   

  	
  0.9632

  	
   

  	
  0.7985

  	
   

  	
  0.5914

  	
   

  	
  0.4381

  	
   

  	
  0.3245

  	
   

  	
  0.2404

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Discounted cash flow

  	
   

  	
  (136,928.9

  	
  )

  	
  (225,184.9

  	
  )

  	
  67,438.1

  	
   

  	
  32,969.9

  	
   

  	
  23,262.1

  	
   

  	
  20,040.9

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total present value during projection
  period

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (218,402.7

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Residual value:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Projected terminal EBITDA

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  546,842.9

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Terminal multiple

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  7.0

  	
  x

  	
   

  	
   

  	
   

  	
   

  
	
  Residual value

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  3,827,900.0

  	
   

  	
   

  	
   

  
	
  Present value factor

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0.2069

  	
   

  	
   

  	
   

  
	
  Present value of residual

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  791,969.2

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MVIC indication of fair market value

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  573,566.5

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Less: interest-bearing debt

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (3,575.0

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Equity indication of value (rounded)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  570,000.0

  	
   

  
															

 

Sensitivity Analysis

 

	
   

  	
   

  	
  Terminal

  	
   

  	
  Discount Rate

  	
   

  
	
   

  	
   

  	
  Multiple

  	
   

  	
  30.0%

  	
   

  	
  32.5%

  	
   

  	
  35.0%

  	
   

  	
  37.5%

  	
   

  	
  40.0%

  	
   

  
	
   

  	
   

  	
  5.0

  	
  x

  	
  476,000

  	
   

  	
  406,000

  	
   

  	
  344,000

  	
   

  	
  288,000

  	
   

  	
  239,000

  	
   

  
	
   

  	
   

  	
  6.0

  	
  x

  	
  614,000

  	
   

  	
  531,000

  	
   

  	
  457,000

  	
   

  	
  391,000

  	
   

  	
  332,000

  	
   

  
	
   

  	
   

  	
  7.0

  	
  x

  	
  752,000

  	
   

  	
  656,000

  	
   

  	
  570,000

  	
   

  	
  494,000

  	
   

  	
  426,000

  	
   

  
	
   

  	
   

  	
  8.0

  	
  x

  	
  890,000

  	
   

  	
  780,000

  	
   

  	
  683,000

  	
   

  	
  596,000

  	
   

  	
  519,000

  	
   

  
	
   

  	
   

  	
  9.0

  	
  x

  	
  1,028,000

  	
   

  	
  905,000

  	
   

  	
  796,000

  	
   

  	
  699,000

  	
   

  	
  613,000

  	
   

  

 

Notes:

LTM = Latest 12 months.

NMF = Not meaningful figure.

N/A = Not available.Exhibit 10.1

FIFTH AMENDMENT
AGREEMENT

This FIFTH
AMENDMENT AGREEMENT (this “Amendment”) is made as of the 14th day of December, 2006 among:

(a)           EPIQ SYSTEMS, INC.,
a Missouri corporation (“Borrower”);

(b)           the Lenders, as defined in the Credit
Agreement, as hereinafter defined;

(c)           KEYBANK NATIONAL
ASSOCIATION, as lead arranger, sole book runner and  administrative agent for the Lenders under the Credit Agreement (“Agent”);

(d)           NATIONAL CITY BANK,
as co-documentation agent; and

(e)           SILICON VALLEY BANK, as co-documentation
agent.

WHEREAS, Borrower,
Lenders and Agent are parties to that certain Amended and Restated Credit and
Security Agreement, dated as of November 15, 2005, that provides, among other
things, for loans and letters of credit aggregating One Hundred Twenty-Five
Million Dollars ($125,000,000), all upon certain terms and conditions (as
amended and as the same may from time to time be further amended, restated or
otherwise modified, the “Credit Agreement”);

WHEREAS, Borrower,
Agent and the Lenders desire to amend the Credit Agreement to modify certain
provisions thereof and add certain provisions thereto;

WHEREAS, each
capitalized term used herein and defined in the Credit Agreement, but not
otherwise defined herein, shall have the meaning given such term in the Credit
Agreement; and

WHEREAS, unless
otherwise specifically provided herein, the provisions of the Credit Agreement
revised herein are amended effective as of the date of this Amendment;

NOW, THEREFORE, in
consideration of the premises and of the mutual covenants herein and for other
valuable consideration, Borrower, Agent and the Lenders agree as follows:

1.             Amendment to Definitions.  Article I of the Credit Agreement is hereby
amended to delete the definitions of “Applicable Margin”, “Consolidated EBITDA”,
“Fixed Charge Coverage Ratio”, “Leverage Ratio” and “Senior Leverage Ratio”
therefrom and to insert in place thereof, respectively, the following:

“Applicable Margin” shall mean:

(a)           for any date prior to the Fifth
Amendment Effective Date, the Applicable Margin in effect prior to the Fifth
Amendment Effective Date;

(b)           effective
on the Fifth Amendment Effective Date through March 31, 2007, (i) three hundred
(300.00) basis points for Eurodollar Loans, and (ii) one hundred twenty-five
(125.00) basis points for Base Rate Loans; and

 

(c)           commencing
with the Consolidated financial statements of Borrower for the fiscal quarter
ending December 31, 2006, the number of basis points (depending upon whether
Loans are Eurodollar Loans or Base Rate Loans) set forth in the following
matrix, based upon the result of the computation of the Leverage Ratio, shall
be used to establish the number of basis points that will go into effect on
April 1, 2007 and thereafter:

 

	
   

  	
  

  

  Leverage Ratio

  	
   

  	
  Applicable Basis

  Points for

  Eurodollar Loans

  	
   

  	
  Applicable Basis

  Points for

  Base Rate Loans

  
	
  Greater than or
  equal to 3.50 to 1.00

  	
  325.00

  	
   

  	
  150.00

  
	
  Greater than or
  equal to 3.00 to 1.00 but less than 3.50 to 1.00

  	
  300.00

  	
   

  	
  125.00

  
	
  Greater than or
  equal to 2.50 to 1.00 but less than 3.00 to 1.00

  	
  275.00

  	
   

  	
  100.00

  
	
  Greater than or
  equal to 2.00 to 1.00 but less than 2.50 to 1.00

  	
  250.00

  	
   

  	
  75.00

  
	
  Greater than or
  equal to 1.50 to 1.00 but less than 2.00 to 1.00

  	
  225.00

  	
   

  	
  50.00

  
	
  Less than 1.50 to 1.00

  	
  200.00

  	
   

  	
  0.00

  

 

After April 1, 2007, changes to the Applicable Margin shall be
effective on the first day of each month following the date upon which Agent
should have received, pursuant to Section 5.3(a) and (b) hereof, the
Consolidated financial statements of Borrower. 
The above matrix does not modify or waive, in any respect, the
requirements of Section 5.7 hereof, the rights of Agent and the Lenders to
charge the Default Rate, or the rights and remedies of Agent and the Lenders
pursuant to Articles VIII and IX hereof. 
Notwithstanding anything herein to the contrary, during any period when
Borrower shall have failed to timely deliver the Consolidated financial
statements pursuant to Section 5.3(a) or (b) hereof, or the Compliance
Certificate pursuant to Section 5.3(c) hereof, and such failure has continued
for five Business Days, until such time as the appropriate Consolidated
financial statements and Compliance Certificate are delivered, the Applicable
Margin shall be the highest rate per annum indicated in the above pricing grid
regardless of the Leverage Ratio at such time.

“Consolidated EBITDA” shall mean, for any period, as
determined on a Consolidated basis and in accordance with GAAP, Consolidated
Net Earnings for such period plus the aggregate amounts deducted in determining
such Consolidated Net Earnings in respect of (a) Consolidated Interest
Expense, (b) Consolidated Income Tax Expense, (c) Consolidated
Depreciation and Amortization Charges, (d) (i) extraordinary or unusual
non-cash losses not incurred in the ordinary course of business but that were
counted in the net income calculation for such period, minus (ii) extraordinary
or unusual non-cash gains not incurred in the ordinary course of business but
that were counted in the net income calculation for such period, (e)
unamortized costs, fees and expenses incurred in connection with the
transactions contemplated by this Agreement (specifically including the
amendment fee paid by Borrower in connection with the Fifth Amendment, whether
or not capitalized) and any Acquisition (occurring prior to, on or subsequent
to the Closing Date), up to an aggregate amount for all Companies, with respect
to Acquisition related costs, fees and expenses, not to exceed Six Million
Dollars ($6,000,000) during any twelve (12) month period, (f) expenses and charges
which will be indemnified or

 2
 

 

reimbursed to the extent such amounts are covered by funds in a valid
escrow account or similar arrangement, and (g) any other component of net
income (or net loss) which is non-cash and will not convert to cash within one
year, including without exception any charges related to the granting of
share-based payments to employees or directors; provided, however, that any
time an Acquisition on an on-going business is made pursuant to Section 5.13
hereof, Consolidated EBITDA shall be recalculated to include the EBITDA of the
acquired company as if such Acquisition had been completed on the first day of
the relevant measuring period.

“Fixed Charge Coverage Ratio” shall mean, as
determined for the most recently completed four fiscal quarters of Borrower, on
a Consolidated basis and in accordance with GAAP, the ratio of (a)
(i) Consolidated EBITDA minus (ii) Consolidated Capital Expenditures
(excluding Consolidated Capital Expenditures that are made (A) in connection
with an Acquisition permitted pursuant to Section 5.13 hereof, (B) in
connection with leasehold improvements (but only to the extent such
improvements are reimbursable by the landlord), or (C) with the net proceeds of
Dispositions of capital assets (excluding real estate), to
(b) Consolidated Fixed Charges; provided that Adjusted Consolidated EBITDA
shall be used in place of Consolidated EBITDA for the fiscal quarters of
Borrower ending on December 31, 2005, March 31, 2006, June 30, 2006 and
September 30, 2006.

“Leverage Ratio” shall mean, as determined on a
Consolidated basis and in accordance with GAAP, the ratio of (a) Consolidated
Funded Indebtedness (for the most recently completed fiscal quarter of
Borrower) to (b) Consolidated EBITDA (for the most recently completed four
fiscal quarters of Borrower); provided that Adjusted Consolidated EBITDA shall
be used in place of Consolidated EBITDA for the fiscal quarters of Borrower
ending on December 31, 2005, March 31, 2006, June 30, 2006 and September 30,
2006.

“Senior Leverage Ratio” shall mean, at any time, as
determined on a Consolidated basis and in accordance with GAAP, the ratio of
(a) Consolidated Senior Funded Indebtedness (for the most recently completed
fiscal quarter of Borrower) to (b) Consolidated EBITDA (for the most recently
completed four fiscal quarters of Borrower); provided that Adjusted
Consolidated EBITDA shall be used in place of Consolidated EBITDA for the
fiscal quarters of Borrower ending on December 31, 2005, March 31, 2006, June
30, 2006 and September 30, 2006.

2.             Addition to Definitions.  Article I of the Credit Agreement is hereby
amended to add the following new definitions thereto:

“Accounting Restatement” shall mean the restatement of
the audited financial statements of Borrower, pursuant to the evaluation of
certain revenue recognition rules and guidance from the SEC related to the
application of such rules, for the fiscal years of Borrower ending on December
31, 2003, December 31, 2004 and December 31, 2005 and the unuadited quarterly
financial statements of Borrower for the fiscal quarters of Borrower ending on
March 31, 2006, June 30, 2006 and September 30, 2006.

“Adjusted Consolidated EBITDA” shall mean (a) Fifteen
Million One Hundred Thirty-Four Thousand Dollars ($15,134,000) for the fiscal
quarter of Borrower ending on December 31, 2005, (b) Twelve Million Eight
Hundred Eighty-Five Thousand Dollars ($12,885,000) for the fiscal quarter of
Borrower ending on March 31, 2006, (c) Ten Million Seven Hundred Eighteen
Dollars ($10,718,000) for the fiscal quarter of Borrower ending on June 30,
2006, and (d) Seven Million Two Hundred Fifty-One Thousand Dollars ($7,251,000)
for the fiscal quarter of Borrower ending on September 30, 2006.

 3
 

 

“Fifth Amendment” shall mean the Fifth Amendment
Agreement, dated as of the Fifth Amendment Effective Date, among Borrower,
Agent and the Lenders.

“Fifth Amendment Effective Date” shall mean December
14, 2006.

3.             Amendment to Financial Covenants.  Section 5.7 of the Credit Agreement is hereby
amended to delete subsections (a) and (b) therefrom and to insert in place
thereof, respectively, the following:

(a)           Leverage
Ratio.  The Companies shall not
suffer or permit at any time the Leverage Ratio to exceed (i) 3.50 to 1.00 on
the Closing Date through December 30, 2006, (ii) 3.95 to 1.00 on December 31,
2006 through June 29, 2007, (iii) 3.50 to 1.00 on June 30, 2007 through
September 29, 2007, (iv) 3.25 to 1.00 on September 30, 2007 through December
30, 2007, and (v) 3.00 to 1.00 on December 31, 2007 and thereafter.

(b)           Senior
Leverage Ratio.  The Companies shall
not suffer or permit at any time the Senior Leverage Ratio to exceed (i) 2.50
to 1.00 on the Closing Date through December 30, 2006, (ii) 2.75 to 1.00 on
December 31, 2006 through June 29, 2007, (iii) 2.50 to 1.00 on June 30, 2007
through September 29, 2007, (iv) 2.25 to 1.00 on September 30, 2007 through
December 30, 2007, and (v) 2.00 to 1.00 on December 31, 2007 and thereafter.

4.             Waiver of Specific Defaults.  Borrower has notified Agent and the Lenders
that, as a result of the Accounting Restatement, certain of the calculations of
the financial covenants and certain of the financial statements of Borrower
delivered to Agent and the Lenders since the Closing Date have been incorrect
(collectively, the “Violations”). 
Borrower has requested that Agent and the Lenders waive the Defaults or
Events of Default that exist under the Credit Agreement by virtue of the
Violations.  Agent and the Lenders hereby
waive the aforesaid Defaults or Events of Default that exist solely by virtue
of the Violations, on the condition that after giving effect to the terms of
this Amendment, no Default or Event of Default shall exist under the Credit
Agreement or any other Loan Document. 
This Amendment shall serve as evidence of such waiver.  Borrower agrees with Agent and the Lenders
that (i) except with respect to the limited waiver granted herein specifically
relating to the Violations, Agent and the Lenders shall not be under any
obligation to forbear from exercising any of their rights or remedies upon the
occurrence of any Default or Event of Default, (ii) Borrower shall be in full
compliance with the Credit Agreement and the other Loan Documents on and after
the Fifth Amendment Effective Date, and (iii) Agent and the Lenders have not
established any course of dealing with respect to such waiver or otherwise that
is inconsistent with the express terms of the Credit Agreement and the other
Loan Documents.

5.             Closing Items.  Concurrently with the execution of this
Amendment, Borrower shall:

(a)          
cause each Guarantor of Payment to execute the attached Acknowledgement and
Agreement;

(b)           pay an amendment fee to Agent (i) for
the pro-rata benefit of the Revolving Lenders approving this Amendment, in an
amount equal to twelve and one-half (12.50) basis points multiplied by the
Revolving Amount, and (ii) for the pro-rata benefit of the Term Lenders
approving this Amendment, in an amount equal to twelve and one-half (12.50)
basis points multiplied by the outstanding principal balance of the Term Loan
on the date hereof; and

(c)           pay
all legal fees and expenses of Agent in connection with this Amendment.

 4
 

 

6.             Representations and Warranties.  Borrower hereby represents and warrants to
Agent and the Lenders that (a) Borrower has the legal power and authority to
execute and deliver this Amendment; (b) the officers executing this
Amendment have been duly authorized to execute and deliver the same and bind
Borrower with respect to the provisions hereof; (c) the execution and
delivery hereof by Borrower and the performance and observance by Borrower of
the provisions hereof do not violate or conflict with the organizational
agreements of Borrower or any law applicable to Borrower or result in a breach
of any provision of or constitute a default under any other agreement,
instrument or document binding upon or enforceable against Borrower;
(d) after giving effect to this Amendment, no Default or Event of Default
exists under the Credit Agreement, nor will any occur immediately after the
execution and delivery of this Amendment or by the performance or observance of
any provision hereof; (e) Borrower is not aware of any claim or offset against,
or defense or counterclaim to, Borrower’s obligations or liabilities under the
Credit Agreement or any Related Writing; and (f) this Amendment
constitutes a valid and binding obligation of Borrower in every respect,
enforceable in accordance with its terms.

7.             References to Credit Agreement.  Each reference that is made in the Credit
Agreement or any Related Writing shall hereafter be construed as a reference to
the Credit Agreement as amended hereby. Except as herein otherwise specifically
provided, all terms and provisions of the Credit Agreement are confirmed and
ratified and shall remain in full force and effect and be unaffected hereby.
This Amendment is a Related Writing.

8.             Waiver.  Borrower, by signing below, hereby waives and
releases Agent and each of the Lenders, and their respective directors,
officers, employees, attorneys, affiliates and subsidiaries, from any and all
claims, offsets, defenses and counterclaims of which Borrower is aware, such
waiver and release being with full knowledge and understanding of the
circumstances and effect thereof and after having consulted legal counsel with
respect thereto.

9.             Counterparts.  This Amendment may be executed in any number
of counterparts, by different parties hereto in separate counterparts and by
facsimile signature, each of which when so executed and delivered shall be
deemed to be an original and all of which taken together shall constitute but
one and the same agreement.

10.           Headings.  The headings, captions and arrangements used
in this Amendment are for convenience only and shall not affect the
interpretation of this Amendment.

11.           Severability.  Any term or provision of this Amendment held
by a court of competent jurisdiction to be invalid or unenforceable shall not
impair or invalidate the remainder of this Amendment and the effect thereof
shall be confined to the term or provision so held to be invalid or unenforceable.

12.           Governing Law.  The rights and obligations of all parties
hereto shall be governed by the laws of the State of Ohio, without regard to
principles of conflicts of laws.

[Remainder of page intentionally left blank.]

 

 5

 

JURY TRIAL WAIVER.  BORROWER, THE LENDERS AND AGENT, TO THE
EXTENT PERMITTED BY LAW, EACH HEREBY WAIVES ANY RIGHT TO HAVE A JURY
PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR
OTHERWISE, AMONG BORROWER, THE LENDERS AND AGENT, OR ANY THEREOF, ARISING OUT
OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP
ESTABLISHED AMONG THEM IN CONNECTION WITH THIS AMENDMENT OR ANY NOTE OR OTHER
INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR
THE TRANSACTIONS RELATED THERETO.

IN WITNESS WHEREOF, the parties have executed and
delivered this Amendment as of the date first set forth above.

	
   

  	
  EPIQ SYSTEMS,
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/   Elizabeth
  M. Braham

  
	
   

  	
   

  	
  Elizabeth M.
  Braham

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  KEYBANK NATIONAL
  ASSOCIATION,

     as Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/   Jeff
  Kalinowski

  
	
   

  	
   

  	
  Jeff Kalinowski

  
	
   

  	
   

  	
  Senior Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NATIONAL CITY
  BANK

     as Co-Documentation Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/   Alyson
  D. Ogden

  
	
   

  	
  Name:

  	
  Alyson D. Ogden

  
	
   

  	
  Title:

  	
  Associate

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SILICON VALLEY
  BANK,

     as Co-Documentation Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/   Janice
  Galbary

  
	
   

  	
  Name:

  	
  Janice Galbary

  
	
   

  	
  Title:

  	
  Relationship
  Manager

  
					

 

 Signature Page to
 Fifth Amendment Agreement

 

ACKNOWLEDGMENT AND
AGREEMENT

The
undersigned consent and agree to and acknowledge the terms of the foregoing
Fifth Amendment Agreement dated as of December 14, 2006.  The undersigned further agree that the
obligations of the undersigned pursuant to the Guaranty of Payment executed by
the undersigned shall remain in full force and effect and be unaffected hereby.

The
undersigned hereby waive and release Agent and the Lenders and their respective
directors, officers, employees, attorneys, affiliates and subsidiaries from any
and all claims, offsets, defenses and counterclaims of which the undersigned
are aware, such waiver and release being with full knowledge and understanding
of the circumstances and effect thereof and after having consulted legal
counsel with respect thereto.

JURY TRIAL WAIVER.  THE UNDERSIGNED, TO THE EXTENT PERMITTED BY
LAW, HEREBY WAIVE ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY
DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG BORROWERS,
AGENT, THE LENDERS AND THE UNDERSIGNED, OR ANY THEREOF, ARISING OUT OF, IN
CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED
AMONG THEM IN CONNECTION WITH THIS AMENDMENT OR ANY NOTE OR OTHER INSTRUMENT,
DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE
TRANSACTIONS RELATED THERETO.

	
  BANKRUPTCY
  SERVICES LLC

  EPIQ SYSTEMS
  ACQUISITION, INC.

  POORMAN-DOUGLAS
  CORPORATION

  HILSOFT, INC.

  	
  FINANCIAL BALLOTING GROUP, LLC

  
	
   

  
	
  By:

  	
  /s/   Elizabeth M. Braham

  
	
   

  	
  Elizabeth M. Braham

  
	
   

  	
   

  	
  Secretary, Chief Financial Officer and Treasurer

  
	
  By:

  	
  /s/   Elizabeth
  M. Braham

  	
   

  
	
   

  	
  Elizabeth M.
  Braham

  	
   

  
	
   

  	
  Secretary

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  NOVARE, INC.

  	
  NMATRIX, INC.

  
	
   

  	
   

  
	
  By:

  	
  /s/   Elizabeth
  M. Braham

  	
   

  	
  By:

  	
  /s/   Elizabeth M. Braham

  
	
   

  	
  Elizabeth M. Braham

  	
   

  	
  Elizabeth M. Braham

  
	
   

  	
  Treasurer and Secretary

  	
   

  	
  Executive Vice President and Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  EPIQ ADVISORY
  SERVICES, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/   Elizabeth
  M. Braham

  	
   

  
	
   

  	
  Elizabeth M. Braham

  	
   

  
	
   

  	
  Executive Vice
  President, Chief Financial Officer and 

  	
   

  
	
   

  	
  Treasurer

  	
   

  
							

 

 1

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