Exhibit 1 Harris Seafoods, Inc.

—Selected Income Statement, Balance Sheet and Share

Performance Data, 1974-1979 ($000s)

1974 1975 1976 1977 1978 1979

Income Statement

Sales $9,232 $10,245 $14,653 $15,613 $20,136 $32,619

Cost of goods sold 5,187 6,841 8,298 8,956 14,161 17,534

Gross profit $4,045 $3,404 $6,355 $6,657 $5,975 $15,085

Selling, general and administrative 460 650 608 1,174 906 1,501

Operating income $3,585 $2,754 $5,747 $5,483 $5,069 $13,584

Interest 409 373 314 424 401 649
Other income 288 353 475 599 466 530

Pretax income $3,464 $2,734 $5,908 $5,658 $5,134 $13,465

Taxes 1,697 1,176 2,422 2,376 2,156 5,655

Net income $1,767 $1,558 $3,486 $3,282 $2,978 $7,810

Dividends 0 0 697 820 953 2,733

Balance Sheet

Cash and marketable securities 240 123 308 468 604 623
Accounts receivable 563 799 908 952 1,297 1,987
Inventories 1,985 3,282 2,612 5,386 4,213 6,332
Other current assets 85 118 180 144 307 306

Total current assets $2,873 $4,322 $4,008 $6,950 $6,421 $9,248

Net property, plant and equipment 7,407 8,106 11,019 12,115 12,566 15,684
Other long-term assets 489 581 782 880 1,101 2,472

Total assets $10,769 $13,009 $15,809 $19,945 $20,088 $27,404

Notes payable $2,662 $3,007 $2,743 $2,013 $1,007 $3,084

Current maturities-long-term debt 87 145 234 1,414 1,364 1,246
Accounts payable 311 418 440 543 416 829
Taxes payable 42 35 59 55 59 42
Other current liabilities 183 192 312 293 188 587

Total current liabilities $3,285 $3,867 $3,788 $4,318 $3,034 $5,788

Other long-term liabilities 29 34 56 71 27 28
Long-term debt 1,345 1,438 1,507 2,636 2,082 1,567
Common stock 6,110 7,670 10,459 12,920 14,945 20,021

Total liabilities and equity $10,769 $13,009 $15,810 $19,945 $20,088 $27,404

Share Data

High $13.38 $12.13 $18.88 $26.75 $24.63 $32.38

Low $7.25 $6.75 $12.00 $15.50 $15.88 $21.88
Close $12.13 $10.75 $18.75 $18.38 $22.50 $27.00
Shares (000s) 1,831 1,931 1,940 1,963 1,982 2,005
Earnings per share $0.96 $0.81 $1.80 $1.67 $1.50 $3.90
Dividends per share $0.00 $0.00 $0.36 $0.42 $0.48 $1.36
Price to earnings ratio 12.6 13.3 10.4 11.0 15.0 6.9
Beta 1.25
$54,135,000.00
Exhibit 2 Supply, Demand and Price Data for the U.S. Shrimp Industry (million lbs.)

Beginning Domestic Fleet Ending Apparent Raw Shrimp Pounds Consumed

Year Inventory Landings Imports Exports Inventory Consumption Prices ($/lb.) per Capita

1970 62.5 224.3 245.7 56.8 72.2 403.5 1.01 1.981

1971 72.2 238.1 213.9 57.5 69.9 396.8 1.49 1.924
1972 69.9 235.9 253.1 52.1 92.7 414.1 1.25 1.989
1973 92.7 229.4 229.3 67.7 79.1 404.6 2.11 1.924
1974 79.1 224.4 267.5 48.1 76.2 446.7 1.58 2.113
1975 76.2 207.6 231.1 47.2 47.4 420.3 2.91 1.972
1976 47.4 243.1 270.7 48.1 61.1 452.1 3.22 2.106
1977 61.1 287.4 270.4 52.9 80.2 485.8 2.56 2.244
1978 80.2 255.4 239.1 60.4 58.2 456.1 3.83 2.088
1979 56.2 206.9 267.1 45.7 77.5 407.1 4.67 1.851

February 1980 NAa NA NA NA NA NA 4.31 NA

Compound annual growth

rate (percent) (1.32) (1.00) 1.05 (2.68) 0.89 0.11 21.09 (0.84)

Source: National Marine Fisheries Service, Shellfish Market Review.

Note: Price data are wholesale prices per pound for small size shrimp (31 to 40 per pound). (This is the size of the shrimp used in breading operations of processors.)
a
Not available
Exhibit 3 Selected U.S. Shrimp Industry Statistics—1971 to 1979

1971-1979
Compound Annual
1971 1972 1973 1974 1975 1976 1977 1978 1979 Growth Rate (%)

Fresh and Frozen Shrimp

Pounds to retaila market (millions) 52.7 40.5 37.4 48.6 45.2 53.3 60.8 56.3 56.8 0.94
Pounds to institutionalb market " 230.5 229.6 211.9 275.2 256.0 301.9 344.8 319.0 322.1 4.27
Total pounds " 283.2 270.1 249.4 323.8 301.2 355.2 405.6 375.3 378.9 3.71
Dollar sales to retail market " 118.5 97.2 123.9 136.3 144.7 216.1 304.4 279.8 458.8 18.44
Dollar sales to institutional market " 444.9 505.1 643.5 712.8 757.0 1,431.9 1,793.9 1,648.9 2,704.0 25.30
Total dollar sales " 563.4 602.4 767.4 849.1 901.7 1,648.0 2,098.3 1,928.7 3,162.8 24.07
"
Average price to retail market ($/lb.) 2.25 2.40 3.31 2.80 3.20 4.05 5.01 4.97 8.08 17.33
Average price to institutional market " 1.93 2.20 3.04 2.59 2.96 4.74 5.20 5.17 8.39 20.16
Average price " 2.37 2.23 3.08 2.62 2.99 4.64 5.17 5.14 8.35 17.05
"
Breaded Shrimp (includes weight of shrimp and breading)

Pounds to retaila market (millions) 31.4 31.9 32.8 26.7 27.5 26.5 23.5 27.0 23.5 (3.56)
Pounds to institutionalb market " 72.9 74.5 76.6 62.4 64.2 61.8 70.6 80.9 70.4 (0.44)
Total pounds " 104.3 106.4 109.4 89.1 91.7 88.3 94.1 107.9 93.9 (1.30)
Dollar sales to retail market " 53.1 57.1 87.1 62.2 74.4 94.3 83.5 98.7 114.3 10.06
Dollar sales to institutional market " 126.8 132.6 193.1 139.6 166.8 228.8 260.6 308.0 356.7 13.80
Total dollar sales " 179.9 189.7 279.9 201.8 241.2 323.1 344.1 406.7 471.0 12.78

Average price to retail market ($/lb.) 1.69 1.79 2.66 2.33 2.71 3.56 3.55 3.66 4.86 14.12
Average price to institutional market " 1.74 1.78 2.52 2.24 2.60 3.70 3.69 3.81 5.07 14.30
Average price " 1.72 1.78 2.56 2.26 2.63 3.66 3.66 3.77 5.02 14.33

Total (all shrimp products—fresh, frozen and breaded)

Pounds to retaila market (millions) 84.1 72.4 70.2 75.3 72.7 79.8 84.3 83.3 80.3 (0.58)
Pounds to institutionalb market " 303.4 304.1 288.5 337.6 320.2 363.7 415.4 399.9 392.5 3.27
Total pounds " 387.5 376.5 358.8 412.9 392.9 443.5 499.7 483.2 472.8 2.52
Dollar sales to retail market " 171.6 154.3 211.0 198.5 219.1 310.4 387.9 378.5 573.1 16.27
Dollar sales to institutional market " 571.7 637.7 836.6 852.4 923.8 1,660.7 2,054.5 1,956.9 3,060.7 23.33
Total dollar sales " 743.3 792.1 1,047.3 1,050.9 1,142.9 1,971.1 2,442.4 2,335.4 3,633.8 21.94

Average price to retail market ($/lb.) 2.04 2.13 3.01 2.64 3.01 3.89 4.60 4.54 7.14 16.95
Average price to institutional market " 1.88 2.10 2.90 2.52 2.89 4.57 4.95 4.89 7.80 19.47
Average price " 2.17 2.10 2.92 2.55 2.91 4.44 4.89 4.83 7.69 17.13

Source: Quick Frozen Foods, various issues.

a
Retail market—supermarkets, fish stores, etc.
b
Institutional market—restaurants, fast food chains, cafeterias, etc.
Exhibit 4 Selected Income Statement, Balance Sheet and Share Performance Data for Treasure
Isle, Inc.—1974-1979 ($000s)

1974 1975 1976 1977 1978 1979

Income Statement

Sales $38,587 $32,212 $41,688 $50,132 $58,704 $71,457

Cost of goods sold 34,804 26,828 34,779 40,338 47,614 60,870

Gross profit $3,783 $5,384 $6,909 $9,794 $11,090 $10,587

Selling, general and administrative 2,697 2,841 3,379 4,366 5,352 6,702
Depreciation 421 383 348 345 372 866
Interest 894 251 147 164 274 816

Pretax income ($229) $1,909 $3,035 $4,919 $5,092 $ 2,203a

Taxes (151) 898 1,464 2,405 2,358 939

Net income ($78) $1,011 $1,571 $2,514 $2,734 $1,264

Dividends 0 0 57 80 72 70

Balance Sheet

Cash and marketable securities 62 293 198 457 429 620

Accounts receivable 2,207 2,284 2,752 3,772 3,707 3,636
Inventories 2,572 2,104 2,559 4,124 4,251 5,058
Other current assets 458 57 100 123 112 978

Total current assets $5,299 $4,738 $5,609 $8,476 $8,499 $10,292

Net property, plant and equipment 2,851 2,777 2,744 2,990 4,197 8,727b
Other long-term assets 416 403 444 883 1,581 1,660
Goodwill 0 0 0 0 0 1,451b

Total assets $8,566 $7,918 $8,797 $12,349 $14,277 $22,130

Notes payable $2,827 $1,093 $570 $475 $209 $2,787

Current maturities—long-term debt 218 30 62 144 164 695
Accounts payable 863 1,061 857 1,676 1,396 2,338
Taxes payable 0 845 703 972 100 0
Other current liabilities 460 485 609 762 1,104 1,203

Total current liabilities $4,368 $3,514 $2,801 $4,029 $2,973 $7,023

Other long-term liabilities 206 64 91 124 196 275
Long-term debt 385 175 266 367 705 3,302
Common stock 3,607 4,165 5,639 7,829 10,403 11,530

Total liabilities and equity $8,566 $7,918 $8,797 $12,349 $14,277 $22,130

Share Data

High $7.25 $23.25 $36.75 $45.88 $37.88 $22.38

Low $3.25 $12.13 $27.63 $28.88 $26.75 $8.75
Close $6.38 $15.63 $34.25 $39.12 $33.75 $10.88
Shares (000s) 680 662 556 532 512 507
Earnings per share ($0.11) $1.53 $2.83 $4.73 $5.34 $2.49
Dividends per share $0.00 $0.00 $0.10 $0.40 $0.40 $0.40
Price to earnings ratio NA 10.2 12.1 8.3 6.3 4.4
Beta 1.62

a
Profits in 1979 were depressed by extraordinary legal expenses of $500,000 before taxes.
b
Reflects acquisition made in 1979.
6,784

equity
Exhibit 5 Selected Income Statement, Balance Sheet and Share Performance Data for Ocean
Foods, Inc.—1974-1979 ($000s)

1974 1975 1976 1977 1978 1979

Income Statement
Sales $12,045 $12,461 $17,847 $18,463 $22,549 $27,451
Cost of goods sold 10,025 9,859 14,494 14,056 17,665 21,911

Gross profit $2,020 $2,602 $3,354 $4,407 $4,884 $5,540

Selling, general and administrative 1,272 1,302 1,762 2,053 2,205 2,394
Depreciation 300 336 320 419 324 388
Interest expense 299 368 360 278 362 337
Other income 14 17 62 (33) 56 0

Pretax income $163 $614 $974 $1,624 $2,050 $2,421

Taxes 78 302 460 781 967 1,114

Net income $86 $312 $514 $842 $1,082 $1,307

Dividends 16 28 51 211 271 405

Balance Sheet

Cash and marketable securities 148 123 182 349 277 275
Accounts receivable 1,189 1,247 1,449 2,073 1,781 2,361
Inventories 1,427 1,457 1,616 2,267 2,321 3,019
Other current assets 148 192 294 247 347 365

Total current assets $2,912 $3,020 $3,542 $4,937 $4,727 $6,020

Net property, plant and equipment 3,245 2,967 3,455 3,129 3,459 3,856
Other long-term assets 14 292 357 255 302 401

Total assets $6,171 $6,279 $7,354 $8,321 $8,488 $10,276

Notes payable $1,228 $1,271 $1,692 $1,991 $1,395 $2,002

Current maturities—long-term debt 100 100 100 100 100 100
Accounts payable 788 677 865 1,016 1,081 1,315
Taxes payable 158 177 220 247 230 327
Other current liabilities 10 14 18 13 20 27

Total current liabilities $2,283 $2,239 $2,895 $3,367 $2,826 $3,771

Deferred taxes 375 343 400 362 359 400
Long-term debt 1,500 1,400 1,300 1,200 1,100 1,000
Common stock 2,013 2,297 2,760 3,392 4,203 5,105

Total liabilities and equity $6,171 $6,279 $7,354 $8,321 $8,488 $10,276

Share Data

High $4.25 $5.00 $6.25 $13.25 $11.13 $12.75

Low $1.88 $2.50 $3.25 $6.88 $6.75 $9.25
Close $3.25 $4.88 $5.13 $9.38 $7.38 $11.25
Shares (000s) 821 834 845 874 881 881
Earnings per share $0.10 $0.37 $0.61 $0.96 $1.23 $1.47
Dividends per share $0.02 $0.03 $0.06 $0.24 $0.31 $0.46
Price to earnings ratio 31.1 13.0 8.4 9.7 6.0 7.6
Beta 0.86
Exhibit 6 Processing Plant Proposal—Pro Forma Income Statement and Asset Requirements
Projections—1980-1986—0% Inflation ($000s)

1980 1981 1982 1983 1984 1985 1986

Sales

Pounds (000s) 0 5,500 12,025 14,265 14,500 14,750 15,000

Price per pound ($) $4.75 $4.75 $4.75 $4.75 $4.75 $4.75 $4.75

Revenues $0 $26,125 $57,119 $67,759 $68,875 $70,063 $71,250

Cost of goods sold
(excluding depreciation) 0 22,828 46,837 55,562 56,478 57,451 58,425

Gross profit $0 $3,297 $10,281 $12,197 $12,398 $12,611 $12,825

Selling, general and
administrative 0 2,874 6,283 6,437 6,543 6,656 6,769
Depreciationa 0 833 778 731 693 661 634

Pretax operating profit $0 ($410) $3,220 $5,029 $5,162 $5,294 $5,422

Assets

Cash $450 $261 $571 $678 $689 $701 $713

Accounts receivable 0 2,176 4,758 5,644 5,737 5,836 5,935
Inventories 2,485 4,561 7,962 9,446 9,601 9,767 9,932
Other current assets 0 523 1,142 1,355 1,378 1,401 1,425

Total current assets $2,935 $7,521 $14,434 $17,123 $17,405 $17,705 $18,005
Net plant and equipment 7,000 6,867 6,789 6,757 6,765 6,804 6,870
Other long-term assets 100 392 857 1,016 1,033 1,051 1,069

Total assets $10,035 $14,780 $22,080 $24,896 $25,203 $25,560 $25,944

a
Double-declining balance method.
Exhibit 7 Processing Plant Proposal—Pro Forma Income Statement and Asset Requirements
Projections—1980-1986—11% Inflation ($000s)

1980 1980 1980 1980 1980 1980 1980

Sales

Pounds (000s) 0 5,500 12,025 14,265 14,500 14,750 15,000

Price per pound ($) $4.75 $5.27 $5.85 $6.50 $7.21 $8.00 $8.88

Revenues $0 $28,999 $70,376 $92,669 $104,557 $118,059 $133,267

Cost of goods sold

(excluding depreciation) 0 25,339 57,708 75,989 85,737 96,809 109,279

Gross profit $0 $3,660 $12,668 $16,680 $18,820 $21,251 $23,988

Selling, general and
administrative 0 3,190 7,741 8,804 9,933 11,216 12,660
Depreciationa 0 833 787 758 746 748 764

Pretax operating profit $0 ($363) $4,139 $7,119 $8,141 $9,287 $10,564

Assets

Cash 450 290 704 927 1,046 1,181 1,333

Accounts receivable 0 2,416 5,862 7,719 8,710 9,834 11,101
Inventories 2,485 5,063 9,810 12,918 14,575 16,457 18,577
Other current assets 0 580 1,408 1,853 2,091 2,361 2,665

Total current assets $2,935 $8,348 $17,784 $23,417 $26,422 $29,834 $33,677
Net plant and equipment 7,000 6,944 7,019 7,218 7,535 7,966 8,511
Other long-term assets 100 435 1,056 1,390 1,568 1,771 1,999

Total assets $10,035 $15,727 $25,859 $32,025 $35,535 $39,570 $44,187

a
Double-declining balance method.
Exhibit 8 Selected Statistics on the U.S. Economy and Capital Markets—1970 to February 1980

February
1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980

1. Nominal gross national product $982 $1,063 $1,171 $1,306 $1,412 $1,529 $1,702 $1,899 $2,128 $2,369 $2,521a
2. Percent change—gross national product 4.9 8.2 10.2 11.5 8.1 8.3 11.3 11.6 12.1 11.3 6.4a
3. Unemployment rate 4.9 5.9 5.6 4.9 5.6 8.5 7.7 7.0 6.0 5.8 6.0
4. Percent change—GNP deflator 5.4 5.1 4.1 5.8 9.7 9.6 5.2 6.0 7.3 8.8 9.5a
5. Percent change—consumer price index 5.5 3.4 3.4 8.8 12.2 7.0 4.8 6.8 9.0 13.3 18.2a
6. Percent change—food price index 2.2 4.3 4.7 20.1 12.2 6.5 0.6 8.0 11.8 10.2 0.0a

7. Prime interest rate 7.91 5.72 5.25 8.03 10.81 7.86 6.84 6.83 9.06 12.67 15.50
8. Interest rate—long-term AAA corporate bonds 8.04 7.39 7.21 7.44 8.57 8.83 8.43 8.02 8.73 9.63 12.64
9. Interest rate—long term BAA corporate bonds 9.11 8.56 8.16 8.24 9.50 10.61 9.75 8.97 9.49 10.69 13.57
10. Interest rate—long-term tax exempt, municipal bonds 6.51 5.70 5.27 5.18 6.09 6.89 6.49 5.56 5.90 6.39 8.04
11. Interest rate—U.S. Treasury bills (6 month) 6.56 4.51 4.47 7.18 7.93 6.12 5.27 5.51 7.57 10.02 12.79
12. Interest rate—long-term government bonds 7.35 6.16 6.21 6.84 7.56 7.99 7.61 7.42 8.41 9.44 12.41

13. Return on equity—all U.S. manufacturing companies 9.3 9.7 10.6 12.8 14.9 11.6 13.9 14.2 15.0 16.3 NA
14. New York stock exchange composite index 45.72 54.22 60.29 57.42 43.84 45.73 54.46 53.69 53.71 58.32 66.06
15. Percent change—New York stock exchange index (16.37) 18.59 11.20 (4.76) (23.65) 4.31 19.09 (1.41) 0.04 8.58 13.27
16. Percent yield—corporate stocks 3.83 3.14 2.84 3.06 4.47 4.31 3.72 4.62 5.28 5.45 5.24a

Sources: Economic Report of the President, 1979; Survey of Current Business.

a
Annualized rates.
Exhibit 6 Processing Plant Proposal—Pro Forma Income Statement and Asset Requirements Projections—
1980-1986—0% Inflation ($000s)
1980 1981 1982 1983 1984 1985 1986
Revenues 0 28999 70376 92669 104557 118059 133267
Cost of Goods Sold 0 25339 57708 75989 85737 96809 109279
Selling, general and administrative 0 3190 7741 8804 9933 11216 12660
Depreciation 0 833 787 758 746 748 764
Pretax operating profit 0 -363 4140 7118 8141 9286 10564
Taxes (48%) 0 0 1987 3417 3908 4457 5071
Net Income 0 -363 2153 3701 4233 4829 5493

Long Term Assets 7,100 7,379 8,075 8,608 9,103 9,737 10,510
Total Current Assets 2935 8348 17784 23417 26422 29834 33677
Total Current Liabilities (9% of sales) 0 2610 6334 8340 9410 10625 11994
Net Working Capital 2935 5738 11450 15077 17012 19209 21683
Change in Net Working Capital 2935 2803 5712 3627 1935 2197 2474
CAPEX 7,100 1,112 1,483 1,291 1,241 1,382 1,537
Free Cash Flows -10035 -3445 -4255 -458 1803 1998 2246
Discount Factor (using average cost of 1 1.18 1.39 1.64 1.93 2.27 2.67
capital based on two methods)
PV -10035 -2924 -3066 -280 936 880 840

PV of FCFs -13649
Growth Rate 12%
Terminal Value 16185

NPV 2536
1987 1988 1989 1990 1991 1992
 WACC Method 1
Risk Free Rate 12.40% Weight of Debt
Expected Return on Market Portfolio 20.40% Weight of Equity
Cost of Debt
Beta Exhibit 1 Harris 1.25 Cost of Equity 1 using Exhibit 1
Tax Rate
Beta Exhibits 4 and 5 0.91
Cost of Capital using Exhibit 1

Beta Exhibit 4 Treasure Isle

Beta Levered 1.62
Debt 6,784
Equity 11,530
Beta Unlevered 1.02

Exhibit 5 Ocean Foods

Beta 0.86
Debt 3,102
Equity 5,105
Beta Unlevered 0.53
 WACC Method 2
0.15 Weight of Debt 0.15
0.85 Weight of Equity 0.85
13.5% Cost of Debt 13.5%
22.4% Cost of Equity 1 using Exhibits 4and5 19.7%
48.0% Tax Rate 48.0%

20.09% Cost of Capital using Exhibits 4 and 5 17.81%

Most likely better approach

Ru 18.8%
 Comments
Vu 28984 Calculated from the 3 rows below
EBIT 10564 Based on 1986 value with 11% inflation
Tax Rate 48% Given
Cost of Equity Unlevered 0.19 Calculated based on competitors
Debt 4769 Based on table to the right
VL 31273 Vu + interest Tax Shield
 1980 1981 1982 1983 1984 1985
Debt Outstanding 7000 6735 6435 6094 5707 5268
Payment 1210 1210 1210 1210 1210
Interest Paid 945 909 869 823 770
Principal Paid 265 300 341 387 439
1986 1987 1988 1989 1990 1991 1992
4769 4203 3561 2832 2005 1066 0
1210 1210 1210 1210 1210 1210 1210
711 644 567 481 382 271 144
499 566 642 729 827 939 1066
 Year 0 1 2 3 4 5 6 7 8 9
Free Cash Flows -10035 -3445 -4255 -458 1803 1998 2246
Ru 1.00 1.19 1.41 1.68 1.99 2.36 2.81
PV -10035 -2900 -3016 -273 906 845 800
Terminal Value 11560
Vu -2114
Debt Outstanding 7000 6735 6435 6094 5707 5268 4769 4203 3561 2832
ITS 0 454 436 417 395 370 341 309 272 231
PV (ITS) 0 400 339 285 238 196 160 145 127 108
PV (ALL ITS) 2176

VL 62

Growth 11%
 10 11 12

2005 1066 0
184 130 69
86 61 32