Valuation Summary

Preliminary Discounted Cash Flow Analysis: Using EBITDA & Sales Exit Multiple for Terminal Value
Projected
Fiscal Year Ended FY2005E 2006E 2007E 2008E
Operating Income $13,988 $16,983 $21,777 $27,895
Less: Taxes 2,297 2,898 3,729 5,396
Debt Free Earnings $11,691 $14,085 $18,048 $22,499
Plus: Depreciation & Amortization 1,078 2,097 3,260 3,098
Less: Capital Expenditures 2,619 3,000 3,500 4,250
(Increase) in Working Capital 1,521 (661) 363 167
Free Cash Flow to the Firm $8,629 $13,843 $17,445 $21,180

Forecasted Sales (for terminal value) $165,732

Forecasted EBITDA (for terminal value) $27,895
Discount Rate (IRR) 20.0% 25.0% 30.0%
EBITDA Exit Multiple 10.2x 8.2x 13.3x 10.2x 8.2x 13.3x 10.2x 8.2x 13.3x
2008E EBITDA $27,895 $27,895 $27,895 $27,895 $27,895 $27,895 $27,895 $27,895 $27,895
Terminal Value 284,977 228,739 371,004 284,977 228,739 371,004 284,977 228,739 371,004
PV of Terminal Value 137,431 110,310 178,918 116,726 93,691 151,963 99,778 80,088 129,899
PV of Free Cash Flows 37,114 37,114 37,114 33,370 33,370 33,370 30,185 30,185 30,185
Implied Value of the Enterprise 174,545 147,424 216,031 150,096 127,061 185,333 129,963 110,273 160,084
PV of Terminal as % of Implied Value 78.7% 74.8% 82.8% 77.8% 73.7% 82.0% 76.8% 72.6% 81.1%

Discount Rate 20.0% 25.0% 30.0%

Sales Exit Multiple 1.3x 0.6x 2.8x 1.3x 0.6x 2.8x 1.3x 0.6x 2.8x
2008E Sales $165,732 $165,732 $165,732 $165,732 $165,732 $165,732 $165,732 $165,732 $165,732
Terminal Value 217,135 99,439 464,050 217,135 99,439 464,050 217,135 99,439 464,050
PV of Terminal Value 104,714 47,955 223,789 88,939 40,730 190,075 76,025 34,816 162,477
PV of Free Cash Flows 37,114 37,114 37,114 33,370 33,370 33,370 30,185 30,185 30,185
Implied Value of the Enterprise 141,828 85,068 260,903 122,308 74,100 223,445 106,210 65,001 192,662
PV of Terminal as % of Implied Value 73.8% 56.4% 85.8% 72.7% 55.0% 85.1% 71.6% 53.6% 84.3%
Forecasted sales
2005 2006 2007 2008
85281 105630 133223 165732
Change 20349 27593 32509
% change 23.9% 26.1% 24.4%
Average 24.8%

Forecasted EBITDA
2005 2006 2007 2008
13771 16983 21777 27895
Change 3212 4794 6118
% change 23.3% 28.2% 28.1%
Average 26.5%
WACC IRR

Spyder 20%
Debt 0 25%
Equity 4731 30%
Preferreds 0
D/E 0
Kd 0
Ke 14.42%
WACC = Ke? 14.42%

Ke-CAPM
Rf 4.77%
Beta 0.84
Size Premium 5.00%
MRP 5.50%
Ke 14.42%

Company Comparables

LTM
Market Interest-
Value of Bearing
Company Name Betab Equityc Debt D/E Tax rate UL Beta

Adidas 0.81 4,302 1,459 0.34 0.35 0.66

Columbia Sportswear Co. 1.48 2,239 20 0.01 0.35 1.47
K2 Inc. 1.36 559 209 0.37 0.35 1.09
Quiksilver Inc.f 1.01 1,217 138 0.11 0.35 0.94
Skis Rossignol SAg 0.55 174 118 0.68 0.35 0.38
VF Corp 0.59 5,113 994 0.19 0.35 0.52
Average 0.97 0.28 0.84

Financial Acquirors

Avg
Sales
LTM LTM Sales EBITDA Multiple
Company Name Sales EBITDA Multiple Multiple Finanical

InvestCorp Int'l Inc.-Helly Hansen Asa 146 18 1.10x 8.90x 1.43

Bain Capital-Jack Wolfskin 52 7 1.20x 9.30x
Cerberus Partners-Fila Holding 954 44 0.60x 13.30x Avg Sales Multiple
Bear Stearns- Camel Bak 74 25 2.80x 8.20x 1.31
Average 306.50 23.50 1.43 9.93
 Five-Year
Average
Debt-to-
Total LTM LTM Sales EBITDA
Value Sales EBITDA Multiple Multiple

0.39 6,221 586 0.93x 9.84x

0.06 990 220 2.28x 10.29x
0.41 839 63 0.92x 12.11x
0.17 1,039 130 1.30x 10.44x
0.44 479 25 0.61x 11.94x
0.20 5,390 725 1.13x 8.42x
1.20 10.51

Avg Avg
Avg Sales EBITDA EBITDA
Multiple Multiple Multiple
Company Finanical Company

1.20 9.93 10.51

Avg Sales Multiple Average EBITDA Multiple

10.22