Continental Carriers, Inc.

Exhibit 1
Selected Income and Dividend Data
($ thousands except per share data)
Operating
Revenue
1982 $ 630,000
1983
693,750
1984
737,305
1985
858,460
1986
926,665
1987 1,028,570
1988 1,080,000

Income
Before
Taxes
$ 14,490
16,650
19,170
22,320
25,020
28,800
25,600

Income
After
Taxes
$ 7,245
8,325
9,585
11,160
12,510
15,725
15,360

Income
Dividends
Per Share Per Share
$

1.61 $
1.85
2.13
2.48
2.78
3.49
3.41

Market Prices Per

Common Share
High
Low

1.00 $ 16.25 $ 11.25

1.15
19.00
14.75
1.25
20.13
15.00
1.25
23.75
17.38
1.25
27.63
22.25
1.50
25.00
18.50
1.50
20.00
16.38

Page 1

Exhibit 2

Continental Carriers, Inc.

Exhibit 2
Summary Balance Sheet at December 31, 1987
($ thousands)
Cash
Accounts receivable
Inventory
Prepaid Expenses
Current Assets
Carrier operating property (cost)
Less: Accumulated depreciation
Net carrier operating property
Other assets
Total assets

$ 19,000
38,450
8,100
9,100
74,650
236,650
89,100
147,550
30900
$ 253,100

Accounts payable
Miscellaneous payables and accruals
Taxes payable
Current liabilities
Common stock ($1 par)
Paid-in surplus
Retained earnings
Stockholders' equity
Total liabilities and stockholders' equity

$ 25,300
20250
5050
50600
4500
40000
158000
202500
$ 253,100

Page 2

Exhibit 3

Continental Carriers, Inc.

Exhibit 3
Analysis of Financial Alternatives
Calculation of Points to Determine Lines
($ thousands except per share data)
EBIT
Interest 1st year
Taxable earnings
Tax at 40%
After-tax earnings
Earnings per share
+ 4,500,000
+ 7,500,000
Annual sinking fund

Bonds
Stocks
Bonds
Stocks
$ 12,500 $ 12,500 $ 34,000 $ 34,000
5,000
5,000
7,500
12,500
29,000
34,000
7,500
5,000
11,600
13,600
7,500
7,500
17,400
20,400
$

1.00

$
$

$ 2,500

3.87

1.00

$
$ 2,500

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