Riordan Manufacturing, Inc. Income Statement For the 12 months ending September 30th

2011 2010

Sales $66,608,660 $56,534,254 Direct Cost of Goods Sold 51,592,470 43,970,250 Gross Margin $15,016,190 $12,564,004

Operating Expenses Sales, Marketing & Other $1,328,615 $1,265,348 Depreciation 1,378,616 1,152,125 Quality Assurance 1,151,176 1,112,247 Research & Development 1,039,637 962,627 General & Administrative 4,954,751 4,674,293 Machining & Systems 143,808 125,050 Total Operating Expenses $9,996,603 $9,291,690 Profit Before Interest & Taxes $5,019,587 $3,272,314

Non-Operating Expenses Interest Expense $604,616 $121,533 Taxes 1,104,309 719,909 Total Non-Operating Expenses $1,708,925 $841,442 Net Profit After Taxes $3,310,662 $2,430,872