Free Response - District Court of Federal Claims - federal

Case 1:98-cv-00720-GWM

Document 394-2

Filed 11/14/2005

Page 1 of 4

DEFENDANT'S SUPPLEMENTAL APPENDIX

Case 1:98-cv-00720-GWM

Document 394-2

Filed 11/14/2005

Page 2 of 4

INDEX TO APPENDIX

Document

Page

Precision Pine's July 1995 Profit Projections: Adjustment To Increase Overrun From 1.10 To 1.25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Profitability Of Precision Pine's Contracts: Using July 17, 1995 Projections And Robert Ness's Roundwood Cost Figures . . . . . . . . . . . . . . . . . . 2

i

Case 1:98-cv-00720-GWM

Document 394-2

Filed 11/14/2005

Page 3 of 4

PRECISION PINE'S JULY 1995 PROFIT PROJECTIONS Adjustment To Increase Overrun From 1.10 To 1.25

Brookbank Profit Projection: Total Timber Volume: Projected Overrun: Projected Lumber Volume: Per MBF Gross Profit (incl. by-prod.): Total Projected Gross Profit: 1600 mbf (l.s.) 1.10 ­­­­­­­­­­­­ 1760 mbf (l.t.) $135.33 /mbf (l.t.) ­­­­­­­­­­­­ $238,187.20

Adjusted Brookbank Profit Projection: Total Timber Volume: Adjusted Overrun: Adjusted Lumber Volume: Per MBF Gross Profit (incl. by-prod.): Total Adjusted Gross Profit: 1600 mbf (l.s.) 1.25 ­­­­­­­­­­­­ 2000 mbf (l.t.) $135.33 /mbf (l.t.) ­­­­­­­­­­­­ $270,660.00

Increase In Projected Profit: $270,660 ÷ 238,187 = 13.6 percent

Source: DX539

DSA1

Case 1:98-cv-00720-GWM

Document 394-2

Filed 11/14/2005

Page 4 of 4

PROFITABILITY OF PRECISION PINE'S CONTRACTS
Using Adjusted July 17, 1995 Projections And Robert Ness's Roundwood Cost Figures

Contract Brookbank Hay Jersey Horse Kettle Manaco Monument Mud O.D. Ridge Sag-Kennedy Salt U-Bar

Gross Profit On Lumber And By-Products $270,660 $1,077,028 ($60,210) $136,764 $49,178 $23,224 $240,810 $179,836 $61,845 ($94,487) ($25,561)

Costs Due To Roundwood $401,025 n/a n/a $296,850 $101,100 $82,500 $304,500 n/a $124,350 $137,625 n/a

Total Gross Profit ($130,365) $1,077,028 ($60,210) ($160,086) ($51,922) ($59,276) ($63,690) $179,836 ($62,505) ($244,997) ($25,561)

Note: Gross profit figures are 13.6 percent higher than Precision Pine's July 17, 1995 profit projections in order to reflect a 1.25 overrun. Roundwood costs are calculated at $75.00 per ccf in accordance with Mr. Ness's cost figures and testimony.

Source: DX519; DX521-45; PX131; (exhibit 4 & App. A); Tr. 2597-99, 2754, 2843 (Ness).

DSA2