Gross Revenue: $1,400,000

Cash Flow: $812,000

Cash Flow Comments: EBITDA

Company designs and manufactures custom nondestructive testing systems for tubular goods, pipes, plate, tanks, aerospace, and various other products for domestic and international companies. Company¡¦s wide range of capabilities include field testing systems, as well as highly sophisticated fixed system installations with full automation and various data acquisition packages. These testing systems are used in many industrial field applications for the detection of various flaw types and also for the measurement of material thicknesses. Company is also involved in providing nondestructive testing services for various industrial products at its facilities, as well as in the field. Other services include personnel training for certification, as well as quality consulting services.

A customer base of over 20 active accounts consists of oil and gas, steel and structural, aerospace, and automotive customers. In 2006, sales were driven by manufacturing testing systems (58%), testing services (35%), training (4%), equipment certification (2%), and consulting (1%).

Highlights include:

„X Profitability: Earnings Before Interest, Taxes, Depreciation, and Amortization (¡§EBITDA¡¨) averaged 58.9% of sales over the two most recent historical years.
„X Gross profit: As a percentage of sales, Company has achieved impressive gross profit margins. From 2004 to 2006, gross profit averaged 82.3% of sales. The Company is expected to continue this high percentage throughout the pro forma period.
„X Superior name and reputation: Company enjoys a long-standing reputation for its focus on offering reliable expertise, and providing superior non-destructive testing services over its 19 year history.
„X Strong client relationships: Company is proud of its strong ties to clients and its reputation for quality work and customer service. This commitment is represented in the 75% retention rate of clients (75%).