Part 5: Forecast of EPS Determine the latest quarterly reporting that company provided. When will be the next earnings announcement? Obtain Balance Sheet and Income Statements for all quarterly reporting in current fiscal year. Make your prediction of the next earnings per share (EPS). Be prepared to explain how you arrived to your forecast and what assumptions you made. Hints (procedure). 1. Forecast next quarter Sales based on prior growth and management guidance or any other information you have. 2. Forecast the Cost of goods sold (or cost of sales) based on the prior trends that you observed from Part2a and/or quarterly reports in the current fiscal year, management guidance, and any other information that you might have. 3. Forecast other expense items that company has based on the prior percentages and any new information you might have. Be prepared to explain your assumptions. 4. Calculate Net Income before tax 5. Apply the income tax rate from the prior quarter (you can modify it if you have any new information). 6. Calculate Net Income after tax 7. Determine Number of Shares Outstanding. Divide Net Income after tax on Number of Shares Outstanding to obtain EPS. Tesla, Inc. Consolidated Statements of Operations (in millions, except per share data) 31 DEC 31 DEC 31 DEC 31 DEC 31 DEC 31 DEC 10-K (19 10-K (23 0K (310K (23 10-K (01 0K (24 Feb 19) b Feb 1) Feb18) ar 17 Feb 16) RECAPRECAP RECAP RECAP RECAP Revenue Automotve excudng automotve leasing 17,5328534.75 5589.013431.9 2874.45 Automotve leasing 309.39 Total automotve rewenue 18,515 9541.30 6350.7 3740.97 3007.01 1921.88 Energy generation and storage Services and ather excuding energy generat on and other 1,555 111627 81.39 67.97 290.58 Total Services and other 2,946 2117.45 305.05 91.62 Total rovenuet 21,481 11763.75 7000.1 4048.02 18.38 2013.60 Total oost of revenues Automctve excluding automotve leasing 3,686 6724.48 4268.09 2539.93 2058.34 708.22 481.99 Automotve leasing 14,174 432.70 4750.08 2823.30 2145.75 1483.32 12.29 Energy generation and storage Services and ather excluding energy generat on and storage 1,365874.54 178.33 1,8801229.02 472.46 286.93 166.93 73.91 Total Services and other 299.22 Total oot of revenues 17,418 B638.28 5400.33 22.62 2318. 1667.2 Grots prof t 4,042 2222.4 1688.28 823.60 831.87 468.28 Research and development 1,460 1378.07 834.4717.0 464.70231.98 2,834 2476.50 1432.19 922.23 603.66 285.57 Seling, general and administrative Restructuring and other Total operating expencec 4,430 3854.57 2266.60 1640.13 1068.36 517.54 Loce from operationc 133 182.08 887.34) 718.83) 138.88)81.28) nMerest income 9.69 0.19 merest expense -663 E471 26) [198.81) [11885) (10089) a2.93) 127 416 22 125.37) LoccInoome before Inoome taxec 1,005 (2208.03) 748.36) 375.82) 234.84) 71.43) n for income taxe Provsion Not loss / Inoome interests and redeemable noncontroling interest 279.18 98.13 ctookholderc 978 (1981.40) 874.81 33B.B8) 284.04) Per share ( Consolidated Statements of Operations (in millions, except per share data) 10K (9 10.K (23 10K (23 10.K 23 10.K (01 10-K (24 Feb 19) Feb18) Feb) Feb 18) Mar 17) Feb '16) RECAPRECAP RECAP RECAP RECAP 17,632 8534.755589.01 3431.59 2874.45 Automotve excluding automotive leasing Automotve leasing 309.39 Total automotve revenue 8,5159541.30 6350.773740.7 3007.01 Energy generation and storage Services and other excuding energy generat on 1,555 1116.27 181.39 290.58 Total Services and other 49.37 305.05 91.34 91.62 Total revenuec 21.481 11753.75 7000.13 4048.02 183.3 2013.60 2 Total ooct of revenuec 3,686 6724.48 428.09 2539.93 2058.34 Automotve excluding autamotive leashg T0B.22 Automotve leasing Energy generaton ,365 874.54 ergy generat on1 Services and other excludng energy generat on and storage 1,880 1229.02472.46 286.3 166.93 73.91 3,245 2103.56 299.22 650.79 Total oost of revenuer 17,418 B638.28 5400.33 122.62 2318.8 1667.24 Groce profn t 2222.48 1460 137807 834.41 Research and development 717.90 464.70231.98 2,834 2476.50 1432.19 922.23 603.66 285.57 Seling. general and administrative Restructuring and other 517.54 Total operating expensec 4,430 3854.57 2266.60 640.13 1068.36 138.88) Loce from operations 33 1842.08) 87.34) 181.28) nierest income 9.69 1.13 0.19 663 47126) 881) 1885) 00.89) 3293) nderest expense Other inoomef expense, net 22 125.37)1127 41.65) 1,005 2208.03) 748.36) 375.82) 234.84) 71.43) Provsion for 224.04) 773.06) 74.01) 1,0831 2240.68) 338.88) interests and redeemabie nanoontroling interest 279.18 98.13 284.04) 197811 1881.40) 874.81) 338.88) 174.01) e Tesla, Inc. Consolidated Statements of Operations (in millions, except per share data) 31 DEC O-K (19 0-K23 O-K O-K (23 0-K (01 10-K (24 eb 18) ve excluding automotive leasing 534 75 589.013431 and other excluding energy generation 39110o1.18 Total Services and other 91 2117 36 2013.50 11758.75 automotive leasing 2058.34 Total automotive cost of revenues 7432.7 2145.7 Services and other excluding energy generation 472 46 Total Services and other 3.24 2103.56 3.91 Total cost of revenues 4,0422222.49 1592 s profit 2476 285.5 and other 3854.57 Total operating expenses 1068 517 (66734) (716.6) (186.691 85 47125198.8 (118.85 (100.89 32.93 1112 ncome/ expense, net income before income taxes 71.43 for income taxes (1,063)(2240.58 (73.5(888.66 (294.04 (74.01) and redeemable noncontroling interest 279.1 041 970(19610 (749( (74,01) stockholders (294 (5.72 (11.83 (2 36 0.62 2 -36 0.62 ghted average shares 144 21 170.5 Tesla, Inc. Consolidated Balance Sheets (in millions, exce Tesla, Inc. Consolidated Statements of Cash Flows (in thousands) Flows fram Opering Other non Changas in sed in grevided by in Cash Flows from Financing Activities 730.0 360.0 Proceeds from issuance of common stock in public offering 400.2 1,701.7 221.5 Proceeds from issuance of convertible and other debt 7.138. 2,853.0 319.0 2.300.0 660.0 Repayments of other debt Repayments of borrowings under solar bonds issued to related parties 3.995.51,8578 165.0 0.0 Purchase of convertible note hedges 0.0 - 603 41775 204 Proceeds from settlement of convertible note hedges 287.2 Payments for settlement of warrants 230 4 Collateralized lease borrowing/ repayments 511.3 769 568.7 3.3 Proceeds from exercise of stock options and other stock 259.1 163.8 106.6 100.5 24.9 ssuances 11 2 Principal payments on capital leases and other debt 103.3469203.8 2.8 Common stock and debt issuance costs 20.0 35 6.9 63 1 Proceeds from issuance of warrants 52.9 389.2 120.3 Net cash flows from noncontrolling interests excluding distributions paid to noncontrolling interests in subsidiarie 201.5 Distributions paid to noncontrolling interests in subsidiaries 2618213 Proceeds from DOE loans 188.8 Proceeds from issuance of common stock in private placement 20.0 55.0 Principal payments on DOE loans 452.3 12.7 Payments for buy-outs of noncontrolling interests in subsidiaries 4,414.93,744. 1,523.5 2,143.1 Net cash provided by financing activities 635.4419.6 Net increase / decrease in cash and cash equivalents before effect of exchange rate changes on cash and cash 2,203.7 -674.5 ,095.3 650.8 51 Effect of exchange rate changes on cash and cash valents 35.5 34.3 644.0 Net increase/ decrease in cash and cash equivalents 25.3 2,196 708.8 1,059.8 53.4 Cash and cash equivalents at beginning of period 3,393.21,196.9 1,905.7 845.9 201.9 255.3 Cash and cash equivalents at end of period 3,367.9 3,393.2 96.9 1,905.7 845.9 201.9 Supplemental Non-Cash Investing and Financing Activities Shares issued in connection of business combination and assumed vested awards 10.5 2,146.0 0.0 of property and equipment included in accounts 44.9 payable and accrued liabilities 91416638 267 3 254 4 388 174.7 Estimated fair value of facilities under build-to-suit lease 313.5 307 50.1 0.0 Supplemental Disclosures 38.7321 20 5 -9 Interest paid 182.6 Income taxes paid 657 16.4 9.5 3.1 -0