September 13, 2011

Equifax Inc. 

 

 - 45 - 

EQUIFAX INC.  

CONSOLIDATED BALANCE SHEETS 

(In millions, except par values) 

 

ASSETS 

June 30, 2011 

(Unaudited) 

Dec. 31, 2010 

Current assets: 

 

 

Cash and cash equivalents  

$    108.7  

$    119.4  

Trade accounts receivable, net  

273.0  

262.6  

Prepaid expenses  

33.1  

26.1  

Other current assets  

  21.7  

  21.1  

Total current assets  

436.5  

429.2  

Property and equipment:  

   

   

Capitalized internal-use software and system costs  

321.2  

315.9  

Data processing equipment and furniture  

176.6  

181.0  

Land, buildings and improvements  

176.0  

169.5  

Total property and equipment  

 673.8  666.4 

 

Less accumulated depreciation and amortization  

(372.9  (368.0 

 

Total property and equipment, net  

300.9  

298.4  

Goodwill  

1,919.1  

1,914.7  

Indefinite-lived intangible assets  

95.7  

95.6  

Purchased intangible assets, net  

559.8  

593.9  

Other assets, net  

177.3  

101.8  

TOTAL ASSETS  

$ 3,489.3  

$ 3,433.6  

   

   

   

LIABILITIES AND EQUITY  

   

   

Current liabilities:  

   

   

Short-term debt and current maturities  

$     17.6  

$     20.7  

Accounts payable  

26.7  

24.6  

Accrued expenses  

62.3  

61.9  

Accrued salaries and bonuses  

38.1  

71.9  

Deferred revenue  

52.6  

58.7  

Other current liabilities  

101.4  81.7 

 

Total current liabilities  

298.7  

319.5  

Long-term debt  

963.9  

978.9  

Deferred income tax liabilities, net  

252.5  

244.2  

Long-term pension and other postretirement benefit liabilities  

113.3  

129.0  

Other long-term liabilities  

     58.3  

     53.6  

TOTAL LIABILITIES  

1,686.7  

1,725.2  

Equifax shareholders' equity:  

   

   

Preferred stock, $0.01 par value  

-  

-  

Common stock, $1.25 par value 

236.6  

236.6  

Paid-in capital  

1,110.6  

1,105.8  

Retained earnings  

2,777.6  

2,725.7  

Accumulated other comprehensive loss  

(295.9)  

(344.5)  

Treasury stock, at cost 

(2,003.4 ) 

(1,991.0 ) 

Stock held by employee benefits trusts, at cost  

    (41.2)  

    (41.2)  

TOTAL EQUIFAX SHAREHOLDERS' EQUITY  

1,784.3  

1,691.4  

Noncontrolling interests  

18.3  

17.0  

TOTAL EQUITY  

1,802.6  

1,708.4  

TOTAL LIABILITIES AND EQUITY  

$ 3,489.3  

$ 3,433.6  

 

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September 13, 2011 

Volume XXXVII, Issue VII & VIII 

     - 46 - 

Mohawk Industries, Inc. 

(NYSE: MHK) 

Dow Jones Indus:  

11,105.85 

 

S&P 500:  

1,172.87 

 

Russell 2000:  

691.74 

Trigger: No 

Index Component:  

S&P MidCap 400 

Type of Situation: Consumer Franchise, Business Value 

 

Price: $ 

44.04 

Shares Outstanding (MM): 

  68.8 

Fully Diluted (MM) (% Increase): 

  69.0 (0.3%) 

Average Daily Volume (MM): 

  0.8 

Market Cap (MM): 

$  3,028.1 

Enterprise Value (MM): 

$  4,400.1 

Percentage Closely Held:  Jeffrey Lorberbaum ~16% 

52-Week High/Low: 

$  68.86/41.66 

5-Year High/Low: 

$  103.32/17.11 

Trailing Twelve Months 

   

Price/Earnings:  

16.0x 

Price/Stated Book Value: 

  0.9x 

Long-Term Debt (MM): 

$  1,625.1 

Implied Upside to Estimate of 

Intrinsic Value: 

62.0% 

Dividend:  

 

Payout  

N/A 

Yield  

Nil 

Net Revenue Per Share: 

   

LTM: $ 

78.6 

2010: $ 

77.6 

2009: $ 

78.1 

2008: $ 

99.8 

Earnings Per Share: 

 

 

LTM: $ 

2.76 

2010: $ 

2.51 

2009: $ 

2.24 

2008: $ 

3.67 

 

 

 

Fiscal Year Ends: 

Company Address: 

 

Telephone: 

Chairman/CEO: 

December 31st 

160 S. Industrial Blvd. 

Calhoun, GA 30701 

706-629-7721 

Jeffrey Lorberbaum 

Clients of Boyar Asset Management, Inc. do not own shares of 

Mohawk Industries, Inc. common stock. 

Analysts employed by Boyar’s Intrinsic Value Research LLC do not 

own shares of Mohawk Industries, Inc. common stock. 

 

 

 

 

Overview 

Mohawk Industries (“Mohawk,” “MHK,” or “the 

Company”), founded in 1878, is the oldest and second 

largest carpet and rug manufacturer in the U.S. It is also 

one of the largest manufacturers of ceramic tile, natural 

stone and hardwood flooring and a leading producer  

of laminate flooring in the U.S. and Europe. The 

Company’s well-known brands include Mohawk, 

Karastan, Bigelow, Dal-Tile, American Olean and 

UniClic.  

U.S. wholesale flooring market sales totaled 

approximately $17.1 billion in 2010, up 3.3% from 2009. 

Catalina Research forecasts flooring sales to increase 

2.1% in 2011. While the industry has experienced a 

slight rebound, flooring sales in 2010 still represented a 

marked 32% decline from the peak of $25.7 billion 

recorded in 2006 prior to the housing recession.  

In our view, there are a number of items that 

will favorably impact Mohawk’s future results including 

international growth, the eventual rebound in new 

residential housing construction, pent up demand for 

home remodeling and the aging of the nation’s housing 

stock. The tile market in Mexico is similar to the U.S. in 

size but is growing 5%-6% per year, while the China tile 

market is 30 times the size of the U.S. and is growing 

10%-12% per year. The laminate market in Russia is 

driven by a rapidly expanding middle class and rising 

 

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