BnB Caribbean Inc. (BnB) is a leading construction company founded in 2001 and is based in Jamaica. The company has within recent years been experiencing increases in revenues from its construction related services such as design, build, expansion and remodeling, and emergency services. It's main line of business is from the construction of roads and commercial buildings within Jamaica and to a lesser extent a few other Caribbean countries. Since the growth of the tourism sector in the Caribbean, BnB Caribbean has become concerned about the number of other construction companies which have entered the market to provide similar services around the Caribbean region. Business overseas contributes to 40% of the company's revenues, while the other 60% comes mainly from works done in the domestic market. The COVID-19 pandemic has caused a slowdown in overall operations leading to prolonged delays in delivery of raw materials from abroad. The CEO of the company is optimistic that there will be a turnaround in operations in 2021, and is therefore considering contracting a loan of $500.0 Million from its local bank to help rebuild its lead position in the market and to expand its line of business to include the sales of heavy equipment. The company has over the years relied mainly on issuing long-term bonds to finance its capital projects. As of today, the firm has 500 million shares of common stock outstanding. You are hired as the Chief Financial Controller of the company to advise the CEO and board of the company of the current financial health of the company and to assist them in determining whether they would be successful with the new loan. 2020 2019 30 60 100 130 220 615 455 310 580 800 956 40 130 710 840 $ 1,680 BnB Construction Inc. Balance Sheet (Millions of Dollars) 2021 Assets 2020 2019 2021 Est Liabilities EST Cash and Cash 15 10 15 Accounts payable 115 50 Equivalents Short-Term 10 Overdrafts 115 110 Investments Accounts Receivable 420 375 315 Accruals 250 Inventories 700 Total Current Liabilities Total Current Assets 1.145 1,000 810 Long-Term Bonds and 1300 754 New Loan Net Plant and 1884 1,190 870 Equipment Total Debt 1790 1,064.00 Preferred Stock 40 40 Common Stock 130 Retained Earnings 3069 Total Common Equity 1199 1086 $ Total Assets $ Total Liabilities and $ $ 3,029 2,190 1,680 Equity 3,029 2,190 Est. Estimate BnB Construction Inc. Income Statement (Millions of Dollars) 2021 Est. 2019 Net Sales 4,000 Operating costs 3,100 2,300 2.100 EBITD 900.00 700 750 Depreciation 110 100 90 Amortizaton 0 0 0 Depreciation and Amortization 110 100 90 EBITD 790 600 660 Interest 100 88 GO Earnings Before Taxes 512 600 Taxes (40%) 276 2048 240 Net Income Before preferred Dividends 414 3072 360 Preferred Dividends 4 4 4 Net Income $ 410.05 303.2 5 3560 Common Dividends 57.5 53 Addition to retained Earnings $ 35250 5 245.70 $ 3030 2020 3,000 28SO 690 575 Per Share Date Common Stock Price 2021 $ 2020 2805 2019 23.00 5 26.00 Earnings Per Share (EPS) Dividend Per Share (OPS) Book Value Per Share (BVPS) Cash Flow Per Share ??? ???? ???? ???? $ $ $ $ 6.065 1.155 21.72 $ 8.065 7.12 106 16 80
