Exhibit 1 Condensed Operating and Stockholder Information, Robertson Tool Company (millions of dollars

except per-share data)

1998

1999

2000

2001

2002

$ 48.5

$ 49.1

$ 53.7

$ 54.8

$ 55.3

32.6

33.1

35.9

37.2

37.9

10.7

11.1

11.5

11.9

12.3

2.0

2.3

2.4

2.3

2.1

Operations
Sales
Cost of Goods
Selling, General and
Administrative Costs
Depreciation Expense
Interest Expense

.4

.7

.8

.8

.8

Income Before Taxes

2.8

1.9

3.1

2.6

2.2

Taxes

1.1

.8

1.2

1.0

.9

Net Income

$1.7

$1.1

$1.9

$1.6

$1.3

O/P Income

3.201

2.6023

3.9201

3.3976

2.9862

Cost of Goods

67%

67%

67%

68%

69%

Sell, Genl, Admin.

22%

23%

21%

22%

22%

Operating Income

6.6%

5.3%

7.3%

6.2%

5.4%

$ 2.91

$ 1.88

$ 3.25

$ 2.74

$ 2.23

Percentage of Sales

Stockholder Information
Earnings Per Share
Dividends Per Share

1.60

1.60

1.60

1.60

1.60

Book Value Per Share

49.40

49.68

51.33

52.47

53.10

Market Price

33-46

35-48

29-41

25-33

23-32

Price/Earnings Ratio

11-16

10-26

9-13

9-12

10-14

Shares Outstanding

584,000

584,000

584,000

584,000

584,000

68.54%
22.24%
3.80%
1.45%
3.98%
1.63%
2.35%

0.392857 0.421053 0.387097 0.384615 0.409091 0.409091

Exhibit 2 Balance Sheet at December 31, 2002, Robertson Tool Company

Assets

(millions of dollars)

Liabilities and Net Worth

$ Amount

Cash

$ 1

Accounts Receivable
Inventories
Other

Other

18
1

Current Assets

28

Net Plant and Equipment

19

Total Assets

Accounts Payable

$ 47

Collection Period (days)

53

Days of Inventory (days)

173

Sales/Total Assets

1.18

$ 2
2

Current Liabilities

Long-term Debt

12

Net Worth

31

Total

$ 47

Debt as % Capital

28%

Total Assets/Net Worth

1.52

Exhibit 3 Condensed Operating and Stockholder Information, NDP Corporation

(millions of dollars except per-share data)
1998

1999

2000

2001

2002

Sales

$ 45

$ 97

$ 99

$ 98

$ 100

Net Income

1.97

3.20

3.20

1.13

2.98

$ 25

$ 46

$ 49

$ 41

$ 46

11

15

10

13

Net Working Capital

19

35

34

31

33

Long-term Debt

10

18

16

15

17

Shareholders Equity

21

36

40

41

41

$ .78

$ .61

$ .59

$ .21

$ .54

0.20

Book Value Per Share

8.31

6.86

7.37

7.38

7.45

Market Price

6-17

10-18

7-18

4-10

5-8

Price/Earnings Ratio

8-22

16-30

12-31

19-48

9-15

Shares Outstanding

2,525,600

5,245,900

5,430,100

5,510,000

5,501,000

Operations

Financial Position
Current Assets
Current Liabilities

Stockholders Information
Earnings Per Share
Dividends Per Share

Exhibit 4 ProFormas for Robertson Tool (millions of dollars)

Actual

Forecasts

2002
Sales

2003

2004

2005

2006

$ 55.3

$ 58.6

$ 62.1

$ 65.9

$ 69.8

Cost of Goods

37.9

39.8

41.6

43.5

45.4

Gross Profit

17.4

18.8

20.5

22.4

24.4

Sell & Admin

12.3

12.3

12.4

12.5

13.3

Depreciation

2.1

2.3

2.5

2.7

2.9

EBIT

3.0

4.2

5.6

7.2

8.2

Tax @ 40%

1.2

1.7

2.2

2.9

3.3

EBIAT

$ 1.8

$ 2.5

$ 3.4

$ 4.3

$ 4.9

CoGS % Sales

69%

68%

67%

66%

65%

Sell & Admin % Sales

22%

21%

20%

19%

19%

$ 19.0

$ 20.7

$ 21.7

$ 22.6

(4.0)

(3.5)

(3.6)

(3.8)

2.3

2.5

2.7

2.9

$ 20.7

$ 21.7

$ 22.6

$ 23.5

Net Plant & Equip @

Beginning of Year
Capital Expenditures
Depreciation Expense
Net Plant & Equip @
End of Year

2007 to Infinity
$ 69.8
45.4
24.4
13.3
2.9
8.2
3.3
$ 4.9

65%
19%

$ 23.5
(2.9)
2.9
$ 23.5

Exhibit 5 Five-Year Forecast of Monmouth, Inc. Earnings, Excluding Robertson Tool

except per-share data)

Net Income
Shares Outstanding (mil)
Earnings Per Share

(millions of dollars

2003

2004

2005

2006

2007

$ 11.0

$ 11.9

$ 12.8

$ 13.8

$ 15.0

4.21

4.21

4.21

4.21

4.21

$ 2.61

$ 2.83

$ 3.04

$ 3.27

$ 3.56

Exhibit 6 Selected Financial Information on Quasi-Comparable Firms, 2002

Actuant Corp.

Collection Period (days)

Briggs & Stratton

Idex Corp.

Lincoln Electric

Snap On Inc.

Stanley Works

Robertson Tool Co.

55

77

47

61

96

77

53

Inventory % Sales

12%

18%

13%

17%

18%

16%

33%

Operating Margin % Sales

17%

13%

20%

15%

10%

15%

5%

Return on Capital

21%

9%

10%

12%

11%

14%

4%

3.8

3.2

7.1

11.5

7.8

9.3

3.5
28%

Times Interest Earned

Debt % Capital

D/E
Equity%cap.
0.388889
0.37 0.587302
0.63

balance sheet values

98%

52%

30%

27%

29%

40%

market values

29%

37%

20%

17%

19%

24%

BB-

BB+

BBB

A+

$ 712

$ 1,443

$ 1,191

$ 1,145

$ 1,861

$ 3,014

$ 29

55

119

98

90

129

234

1.80

EBIAT Multiple

12.8

12.1

12.2

12.7

14.4

12.9

16.1

Share Price

$ 42

$ 42

$ 29

$ 22

$ 26

$ 27

$ 30

Earnings Per Share

2.80

3.20

2.00

1.78

1.80

2.32

2.32

Price/Earnings

15.0

13.1

14.5

12.4

14.4

11.6

13.5

Equity Beta

1.00

1.00

1.00

.75

1.05

.95

Tax

Asset Beta

.71

.63

.80

.63

.85

.73

0.73 Beta Levered

Bond Rating
Value of Firm ($ mil)
EBIAT ($ mil)

40%
0.98047619

Exhibit 7 Information on United States Capital Markets

I. Interest Rates in May 2003
30-Year U.S.

U.S. Corporate Bonds Rated

Treasury Bonds
4.10%

AA

BBB

BB

4.52%

5.07%

6.07%

7.96%

Re

II. Estimated Market Risk Premium = 5.5% over 30-Year U.S. Treasury Bonds

NN

Rd
Rwacc

III. Median Values of Key Ratios by Standard & Poors Rating Category
AAA

AA

BBB

BB

B BBB

Robertson
Times Interest Earned (X)

27.3

18.0

10.4

5.9

3.4

EBITDA / Interest (X)

Pre-tax Return on Capital (%)

31.0
25.2

21.4
25.4

12.8
19.7

7.6
15.1

4.6
12.5

Debt as % Capital (%)

Number of companies

12.6
6

36.1
15

38.4
118

43.7
213

51.9
297

IV. Debt and Times Interest Earned Ratios for Selected Industries
AAA

AA

BBB

BB

Food Processing
Debt % Capital
Times Interest Earned

44%
7.9

51%
6.7

54%
4.3

53%
2.9

Electrical Equipment
Debt % Capital
Times Interest Earned

36%
7.3

48%
3.2

72%
1.6

Electric Utilities
Debt % Capital

46%

54%

57%

73%

4.0

3.4

2.7

2.0

Times Interest Earned

1.5 3.5
2.3 6.375
8.8
74.9 37%
345

Rf
=
=
=

B levered (mkt premium)

6.07% + 0.980476
5.50%
11.4626%
7.87%
8.97%

Robertson Corporation
Discounted Cash Flow Analysis
Operating Scenario
1
Mid Year Convention
Y
Sales
% Growth
Cost of Goods
Gross Profit
% Margin
Selling, General and
EBITDA
%Margin
Depreciation Expense
EBIT
%Margin
Taxes
EBIAT
Plus:Depreciation and amort.

Historical Period
1998
1999
2000
$ 48.5
$ 49.1
$ 53.7
NA
1.24%
9.37%
32.6
33.1
35.9
$ 15.90 $ 16.00 $ 17.80
32.78%
32.59%
33.15%
10.7
11.1
11.5
5.2
4.9
6.3
10.7%
10.0%
11.7%
2
2.3
2.4
3.2
2.6
3.9
6.6%
5.3%
7.3%
1.28
1.04
1.56
1.92
1.56
2.34
2
2.3
2.4

Less: Capital Expenditures

Less:Inc.(dec.) in NWC
Unlevered FCF
WACC

8.97%

Discount Period
Discount Factor
PV of FCF

Enterprise Value
Cumulative PV of FCF

Terminal Value
Terminal Year EBITDA
Exit Multiple
Terminal Value
Discount Factor
PV of terminal Value
% of Enterprize Value

11.1
2.86x
31.746
0.650827
$ 20.66
72%

Enterprise Value

$ 28.90

$
WACC

8.23

28.90

1.9x

Enterprise Value
Exit Multiple
2.4x
2.9x

WACC

8.0%
8.5%
9.0%
9.5%
10.0%

WACC

28.93
8.0%
8.5%
9.0%
9.5%
10.0%

1.9x

Implied Share Price

Exit Multiple
2.4x
2.9x

Period

CAGR
2001 ('98-'01)
$ 54.8
3.10%
2.05%
37.2
$ 17.60 2.57%
32.12%
11.9
###
2.32%
10.4%
2.3
###
1.53%
6.2%
1.36
2.04
1.53%
2.3

2002
2003
$ 55.3
$ 58.6
0.91%
5.97%
37.9
39.8
17.4
$ 18.80
31.46%
32.08%
12.3
12.3
5.1
6.5
9.2%
11.1%
2.1
2.3
3
4.2
5.4%
7.2%
1.2
1.68
1.8
2.52
2.1
2.3
-4
$

Projection Period
CAGR
2004
2005
2006
$ 62.1
$ 65.9
$ 69.8 4.47%
5.97%
6.12%
5.92%
41.6
43.5
45.4
$ 20.50 $ 22.40 $ 24.40 6.74%
33.01%
33.99%
34.96%
12.4
12.5
13.3
8.1
###
11.1
14.31%
13.0%
15.0%
15.9%
2.5
2.7
2.9
5.6
###
8.2
18.21%
9.0%
10.9%
11.7%
2.24
2.88
3.28
3.36
4.32
4.92
18.21%
2.5
2.7
2.9
-3.5
-3.6
-3.8

0.82 $

2.36 $

3.42

4.02

1
2
3
4
5
0.917684 0.84214349 0.772821 0.709206 0.6508265
$
0.75 $
1.99 $
2.64 $
2.85

Implied equity Value and Share Price

Implied Perpetuity Growth

Enterprize Value
Less:Total Debt
Less: Preferred Stock
Less: Non Controlling Interest
Plus: Cash and Cash Equivalents

28.90
-12

$ 1

Implied Equity Value

Fully Diluted Shares Outstanding

Implied Perpetuity
Growth Rate
16.90
0.5840

Implied Share Price

28.93

Value
tiple
3.9x

-0.01%
WACC

3.4x

Terminal Value FCF

WACC
Terminal Value

Implied EV/EBITDA

Enterprize Value
LTM EBITDA
Implied EV/EBITDA
Implied Perpetuity Growth Rate
Exit Multiple
1.9x
2.4x
2.9x

WACC

re Price
tiple
3.4x

3.9x

8.0%
8.5%
9.0%
9.5%
10.0%

Perpetuity Growth

2.85
9%
31.746
-0.01%

ed EV/EBITDA

$ 28.90
$
5.10
5.666x

Growth Rate
ple
3.4x

3.9x