Case Study essay paper
Case Study
Exhibit 1
| Exhibit 1 – Financial data of select waste industry companies | ||||||
| Q2 2012 data, except where notedCase Study | ||||||
| Market Cap. (billions) | Price-Earnings Ratio | Return on Avg Equity | Long-Term Debt to Equity | Operating Margin, 2011 | ||
| Waste Management | 15.9 | 17.4 | 13.5% | 1.5 | 13.5% | |
| Republic Services | 10.2 | 15.3 | 7.8% | 0.9 | 16.4% | |
| Waste Connections | Case Study3.7 | 22.4 | 9.4% | 0.6 | 21.1% | |
| Progressive Waste Solutions | 2.3 | NA | 9.0% | 1.1 | -4.8% | |
| Casella Waste Systems | 0.13 | NA | -139.5% | 26.2 | -4.7% |
Exhibit 2
| Exhibit 2 – Winfield Inc, income, dividend, and stock price data | ||||||||
| Thousands of dollars except per-shareCase Study data | ||||||||
| Operating Revenue | Income Before Taxes | Income After Taxes | Income Per Share | Dividends Per Share | Market Prices Per Share | |||
| High | Low | |||||||
| 2006 | 325,088 | 32,509 | 21,456 | 1.43 | 0.85 | 17.03 | 15.50 | |
| 2007 | 349,556 | 35,655 | 23,889 | 1.59 | 0.90 | 17.71 | 16.51 | |
| 2008 | 371,868 | 33,097 | 21,546 | 1.44 | 0.90 | 14.70 | 11.91 | |
| 2009 | 379,457 | 35,290 | 22,903 | 1.53 | 1.00 | 16.56 | 14.65 | |
| 2010 | 383,223 | 38,002 | 24,853 | 1.66 | 1.00 | 18.80 | 16.90 | |
| 2011 | 395,440 | 40,539 | 26,350 | 1.76 | 1.00 | 21.20 | 17.55 | |
| 2012ECase Study | 410,223 | 42,121 | 27,379 | 1.83 | 1.00 |
Exhibit 3
| Exhibit 3 – Winfield Inc, summary balance sheet | ||
| Thousands of dollars | 2011 | |
| Cash | 27,330 | |
| Accounts receivable | 48,741 | |
| Prepaid expenses | 7,488 | |
| Current assets | 83,559 | |
| Net operating property | 522,043 | |
| Goodwill | 101,423 | |
| Other assetsCase Study | 42,656 | |
| Total assets | 749,681 | |
| Accounts payable | 36,998 | |
| Miscellaneous payables and accruals | 25,883 | |
| Current portion, capital lease | 1,420 | |
| Current liabilities | 64,301 | |
| Capital leases | 15,813 | |
| Common stock | 15 | |
| Paid-in surplus | 146,257 | |
| Retained earnings | 523,295 | |
| Long-term liabilities and equity | 685,380 | |
| Total liabilities and stockholders equity | 749,681 |
Exhibit 4
| Exhibit 4 – Post-acquisition EBIT chart data | |||||
| Thousands of dollars except outstanding shares and per-share data | |||||
| EBIT = $24.35M | EBIT = $66.0M | ||||
| Bond | Stock | Bond | Stock | ||
| EBIT | 24,350 | 24,350 | 66,000 | 66,000 | |
| Interest | 8,125 | – 0 | 8,125 | – 0 | |
| Earnings before tax | 16,225 | 24,350 | 57,875 | 66,000 | |
| Tax @ 35% | 5,679 | 8,523 | 20,256 | 23,100 | |
| After-tax earnings | 10,546 | 15,828 | 37,619 | 42,900 | |
| Shares outstanding (millions) | 15.0 | 22.5 | 15.0 | 22.5 | |
| Earnings per share | $ 0.70 | $ 0.70 | $ 2.51 | $ 1.91 |
