Estate of James J. Renier, Deceased, Kent L. Renier and Dubuque Bank & Trust Company, Co-Executors - Page 3

                                        - 3 -                                         
               Since 1899, the Renier family has conducted a retail                   
          business in Dubuque.  Beginning in the 1950's, the Renier Company           
          (Renier) switched its business focus from musical instruments to            
          the sale of televisions and stereo equipment.  In the 1980's, it            
          expanded its product mix to include video camcorders and VCR’s.             
               On the valuation date, televisions and VCR’s comprised 47              
          percent of Renier’s sales, with audio systems and components                
          making up another 40 percent, and camcorders and car stereos                
          constituting 10 percent.  Another 2 percent of Renier’s sales               
          consisted of batteries and electronic accessories, while the                
          remaining 1 percent consisted of cordless telephones.  The                  
          national annual compound rate of growth from 1989 through 1993              
          for televisions and VCR’s was 4.99 percent; for audio systems and           
          components, 3.07 percent; for camcorders and car stereos, 3.27              
          percent; for batteries and electronic accessories, 9.44 percent;            
          and for cordless telephones, 5.95 percent.  When weighted to                
          reflect the percentage of sales by Renier for each product area,            
          the national annual compound rate of growth for Renier’s product            
          mix from 1989 through 1993 was 4.15 percent.  Renier’s actual               
          sales increased at a compound rate of 8.3 percent from July 1988            
          through June 1993.  However, the majority of Renier’s growth                
          during that period occurred between July 1, 1992, and June 30,              
          1993, during which time sales increased 22.7 percent in part as a           
          result of a major flood in the area that caused many residents to           
          replace their consumer electronic products.  Considering only               

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011