Free Post Trial Brief - District Court of Federal Claims - federal

Case 1:98-cv-00720-GWM

Document 382-2

Filed 09/02/2005

Page 1 of 4

DEFENDANT'S APPENDIX

Case 1:98-cv-00720-GWM

Document 382-2

Filed 09/02/2005

Page 2 of 4

CONVERSION OF TIMBER VOLUMES FROM CCF TO MBF (L.S.) Percent Overstatement Of Contract Timber

Contract Brookbank HutchBoondock Kettle Manaco Monument Mud Sag-Kennedy Salt

Contract-Specific Conversion Factor 0.4780 0.4656 0.4757 0.4845 0.4456 0.4516 0.5000 0.4652

Precision Pine's "Rule of Thumb" Conversion Factor 0.5000 0.5000 0.5000 0.5000 0.5000 0.5000 0.5000 0.5000

Percent Overstatement 4.6% 7.6% 5.1% 3.2% 12.2% 10.7% 0.0% 7.5%

Source: PX4-5, 9-10, 13-14.

DA1

Case 1:98-cv-00720-GWM

Document 382-2

Filed 09/02/2005

Page 3 of 4

PROFITABILITY OF PRECISION PINE'S CONTRACTS
Using Lorin Porter's 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 $238,187 $947,785 ($52,985) $120,352 $43,277 $20,437 $211,913 $158,256 $68,028 ($94,487) ($22,494)

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 ($162,838) $947,785 ($52,985) ($176,498) ($57,823) ($62,063) ($92,587) $158,256 ($56,322) ($232,112) ($22,494)

Note: Gross profit figures are taken from Precision Pine's July 17, 1995 profit projections. 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).

DA2

Case 1:98-cv-00720-GWM

Document 382-2

Filed 09/02/2005

Page 4 of 4

CORRECTED LOG HAULING COSTS
Per Costs In Precision Pine Annual Financial Statements

During December 1996 and January 1997
FYE March 31, 1997 Logging & Hauling Costs Pre-Suspension Logging & Hauling Costs Increase in Costs (Hay) (per mbf) $154.64 /mbf (l.s.) $93.70 /mbf (l.s.) ---------------$64.94 /mbf (l.s.)

Increase in Costs (Hay) (per mbf) Total Volume Removed Additional Hauling Costs

$64.94 /mbf (l.s.) 1,070 mbf (l.s.) ---------------$69,485.80

Additional Hauling Costs Reduction in Hauling Costs for Green Lumber Total Additional Hauling Costs

$69,485.80 $33,437.50 ---------------$31,768.30

During 1998
FYE March 31, 1999 Logging & Hauling Costs Pre-Suspension Logging & Hauling Costs Increase in Costs (Hay) (per mbf) $137.47 /mbf (l.s.) $93.70 /mbf (l.s.) ---------------$43.77 /mbf (l.s.)

Increase in Costs (Hay) (per mbf) Total Volume Removed Additional Hauling Costs Additional Hauling Costs Reduction in Hauling Costs for Green Lumber Total Additional Hauling Costs

$43.77 /mbf (l.s.) 1,662 mbf (l.s.) ---------------$72,745.74 $72,745.74 $14,542.50 ---------------$58,203.24

Source: PX248; PX318; DX68.

DA3