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Non-Tech : Krispy Kreme Doughnuts, Inc. (KKD) -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (828)	8/29/2001 8:18:12 PM
From: Jon Koplik	Read Replies (1) \| Respond to of 1001

Re : earnings calculations -- I took the most recently reported quarter's earnings : $ 5.915 million multiplied by 4 (I realize this is not exactly the correct thing to do. I think it may actually be conservative (?). KKD management mentioned that there is seasonality each year to their business). equals $ 23.66 million times the 1200 % growth you mentioned equals around $ 285 million. How did you come up with only $70 million ? Jon.

To: TimF who wrote (828)	8/30/2001 10:10:11 AM
From: jhg_in_kc	Read Replies (2) \| Respond to of 1001

tw, Jon Koplik's reply to you now has me confused. Which of the two of you is right in the numbers? tia. jhg

To: TimF who wrote (828)	8/30/2001 10:36:47 AM
From: GVTucker	Respond to of 1001

twfowler, RE: Its doing very well right now, its growing without packing on debt, from all I can tell it is a solid company, but its stock is selling at dot com bubble prices. One thing to note here is that while there isn't debt on the balance sheet, KKD is using off balance sheet financing to construct the new plant in Effingham, IL. While the total cost of the plant, $30mm, isn't significant in proportion to KKD's market cap, it is significant when compared to net income. And given that it is off balance sheet, that can make leverage calculations in error. Not a big deal now, but it could be if there are more off balance sheet financings in the future.