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This workbook contains a two-part valuation of a manufacturing "Company" with two operating units and an corporate
The Company-level Rollup includes a Discounted Cash Flow Valuation of the business. The tabs are color-coded as follow
Company Rollup
Income Statement & DCF
Balance Sheet
Statement of Cash Flows
Financial Ratios & Analysis
Debt Schedule
Business Unit #1
Business Drivers w/ assumptions
P&L
Balance Sheet
Statement of Cash Flows
The "Comparables" tab contains financial information about a "peer-group" of 3 public companies, whose Price-to-Ear
Comparables
Peer companies 1, 2, & 3
Similar stats for Company
Finally, the Presentation tab contains a brief introduction to the methodology, calculations of the two Valuations, and s
Select the "Print Preview" option in the Presentation tab to see a slideshow version:
Presentation
Introduction & methodology
Cost of Capital calculation
Valuations (DCF & EV/EBITDA)
Summary graphs
scott@ExcelModels.com to unlock
Overhead Unit
P&L
Balance Sheet
Statement of Cash Flows
Project: Valuation
by Scott Beber
TABLE OF CONTENTS
Background
Valuation Approaches
Comparison of Methodologies
Discounted Cash Flow Valuation
Selected Approach
Exhibits:
Four methods to calculate Market Value...1
Which methodology is most appropriate?......................................................2
How to determine a company's NPV....3
Two methodologies for Company.... 4
Valuation
Weighted Average Cost of Capital
Market Comparables
Discounted Cash Flows
Company's WACC..... 5
Company's Market Comps Valuation 6
Company's DCF Valuation 7
Valuation Approaches
Four Approachs to measuring Market Value
Approach
Methodology
Formula:
Data Sources:
Income
Company financials,
Management estimates
Market
Market capitalization
$ Share Price x
# Shares outstanding
Public companies
Earnings multiple of
comparable "peer group"
Privately-held cos.
Individual business units
Asset
Liquidation value,
Acquisition value
Market prices of
individual assets
Auctions, Indexes,
Historical transactions
Companies in distress
Sum of parts > whole
Other
Various
Comparison of Methodologies
Which is most appropriate?
Methodology
Discounted Cash Flow
Advantages
Most theoretically correct
Takes growth and change into account
Entails deep understanding of company
Fundamentals-driven
Drawbacks
Ignores market moods and perceptions
Can be long and arduous to calculate
Requires deep understanding of company
Requires many estimates (WACC, beta, sales)
Market capitalization
Earnings multiple of
comparable peer group
Liquidation value,
Acquisition value
Option models
V=
CF in period t
(1+WACC) ^ t
CF / (WACC-g)
(1+WACC) ^ n+1
t=0
Selected Approach
Two methodologies chosen:
Methodology
Discounted Cash Flow
Rationale
Appropriate for Company's steady growth
and estimability of future sales & earnings
Ideal for "sum of the parts" valuation involving
separate valuations of 5 business units, a
corporate overhead unit, and an additive rollup
Availability of data and deep understanding
of company input, output, and dynamics
Requirements
Income Statements and Balance Sheets of all
Business Units plus Corporate Overhead unit
Historical "Actuals" data from FY 2008-2012
Business drivers to generate forecasts for
FY 2013-2017
Terminal year values and terminal growth %
A single corporate-wide Debt Schedule
Estimates of Beta and Costs of Capital
Earnings multiple of
comparable peer group
Market Capitalization
$ million:
Principal Balance
2011
2012
2013 (F) 3 yr avg
324,620 228,493 235,204 262,772
23,382
7.20%
8.19%
20,969
9.18%
20,214
8.59%
21,521
8.19%
$ mil
500.0
228.5
728.5
Pct.
Cost
69% 15.37%
31% 8.19%
100% 13.12%
13.12%
* Estimates of Equity Risk Premium (ERP) for the United States in 2012: (Aswath Damodaran- http://pages.stern.nyu.edu/~adamodar/)
Approach
ERP
Source
Survey: CFOs
Historical - US
Selected estimate
sym
Comp1
COMP1
Comp2
Comp3
COMP2
COMP3
Multiple Calculation
Ent Val ($ mil)
$462.7
EBITDA (ttm)
$80.3
$4,740.0
$608.8
$122.3
$30.9
Weighted Avg. Multiple:
EV/EBITDA
5.76
7.79
3.96
7.40
Enterprise Value
Debt (3-yr avg)
Cash
Equity Value
Note: Market data from Yahoo! Finance
EBITDA
$45,621
Ent Val
$337.4
Biz2
$1,429
$10.6
Total Operations
$47,050
$348.0
Corporate Overhead
($30,313)
$0.0
$348.0
($12.3)
$262.8
$40.7
$125.9
($234.4)
WACC
Operations
Biz1
Biz2
Total, Operations
13.1%
13.1%
Corporate Overhead
13.1%
2017
Terminal Years
Stage 1 Stage 2
Valuation
35.6
2.8
38.4
(20.6)
(5.1)
(25.6)
27.6
1.9
29.5
19.5
0.1
19.6
21.8
0.3
22.1
7.0
(0.3)
6.8
43.5
(1.6)
41.9
24.8
(0.8)
23.9
159.1
(2.6)
156.5
(2.2)
(12.9)
(12.8)
(12.5)
(13.2)
(11.7)
(69.2)
(34.3)
(168.8)
36.2
(38.5)
16.6
7.1
8.8
(4.9)
(27.3)
(10.4)
($12.3)
0
0
###
###
Total, Company
(0)
###
Conclusion
Company is Undervalued by the Market
Company's Equity Value ($ mil), per:
Market Comparables model
Discounted Cash Flow model
Book (Shareholders Equity)
$125.9
($234.4)
$213.7
Overall
($ mil)
$374
$734
$286
Dollars
per share
$14.03
$27.54
$10.73
297%
-313%
134%
$400
Biz1
Biz2
$300
Corp. Overhead
Market Comparables
Discounted Cash Flow
$337
Biz2, $11$159
$11
($3)
$0
($169)
97%
3%
0%
$337
$11
$0
(1292%)
21%
1370%
$159
($3)
($169)
$200
Biz1, $337
$100
Biz1, $159
$0
Corp. Overhead, $0
Biz2, ($3)
($100)
($200)
$348.0
($12.3)
6.9x
7.0x
6.0x
5.0x
2011
Biz1
Biz2
2.5x
5.3x
2012
5.3x1.7x
6.9x
2013
1.8x
4.3x
4.3x
Biz1
4.0x
Biz2
3.0x
2.5x
2.0x
1.8x
1.7x
1.0x
0.0x
2011
2012
2013
Operating
Margin
Biz1
Biz2
3%
2%
5%
1%
4%
2%
5%
2%
5%
2%
5%
2%
4%
2%
0%
2008
2009
2010
2011
2012
2013 (F)
2014 (F)
2015 (F)
2016 (F)
2017 (F)
Biz1
Biz2
(15%)
(30%)
$20
Economic Profit
($ mil)
$0
2008
($20)
Biz1
Biz2
2009
2010
(49)
(0)
2011
2012
(6)
(2)
2013 (F)
(14)
(1)
2014 (F)
(13)
(1)
2015 (F)
(16)
(2)
(23)
(2)
2016 (F)
(38)
(2)
($40)
($60)
Note: Economic Profit measures the dollar amount returned in excess of the Required Return (per the Cost of Capital)
11
2017 (F)
Biz1
Biz2
Biz2
Corporate Overhead
60.0%
40.0%
20.0%
EBITDA
FCF
N.I.
Mkt Comps
DCF
Biz1
45.6
26.6
12.7
337.4
159.1
19.9%
16.7%
Biz2
1.4
2.1
(0.9)
10.6
(2.6)
7.9%
Corporate
Overhead
(30.3)
(1.7)
(30.3)
0.0
(168.8)
3.8%
0%
35.9%
28.7%
18%
18%
8.0%
1%
0%
0.0%
(9.0%)
(20.0%)
(40.0%)
(60.0%)
(54.2%)
(80.0%)
(79.7%)
(100.0%)
Net Income
Net Income
EBITDA
Note: Return on Enterprise Value (i.e. Return on Market Value) is an imperfect measure, since it lacks a hard baseline, such as invested capital
Growth opportunities are already priced into market value, making RoEV somewhat subjective. Nevertheless, it is useful for BU comparisons.
12
500,000
2008
Biz1
Biz2
400,000
39,502
(1,736)
Total Mfg
37,767
2009
Fiscal Years:
2012
2013 (F)
2010
2011
2014 (F)
2015 (F)
2016 (F)
2017 (F)
7,810
(4,615)
13,455
2,314
58,230
91,318
127,208
165,603
188,050
2,257
8,667
5,550
9,269
12,249
13,858
15,588
17,415
19,242
10,066
4,052
19,005
11,583
70,479
105,176
142,795
183,018
207,292
300,000
Biz1
Biz2
COR
200,000
COR
522,362
489,581
444,184
416,700
319,080
196,210
166,491
135,135
98,387
61,639
560,129
499,647
448,236
435,706
330,664
266,689
271,667
277,930
281,404
268,931
2013 (F)
2014 (F)
2015 (F)
2016 (F)
2017 (F)
100,000
Total
0
2008
2009
2010
2011
2012
(100,000)
Name
Comp1
Comp2
Comp3
Company
Ticker
Market
Cap
million
EV
million
COMP1
COMP2
COMP3
CO
444
2,000
246
500
463
4,740
122
600
5
Valuation
Trailing
P/E
Fwd P/E
ttm
Dec2013
ttm
ttm
20.6
11.74
15.5
8.75
8.32
7.3
9.72
5.1
0.75
0.61
0.4
0.25
5.76
7.78
3.96
4.45
Price
EV
/Sales /EBITDA Beta:
2.58
2.28
1.72
3.35
10
Return
ROA
ROE
ttm
ttm
5.3%
4.3%
4.0%
4.6%
6.9%
8.9%
8.0%
10.6%
Income
11
12
13
Income Statement
Rev
million
ttm
EBITDA
million
ttm
616
3,370
634
1,290
80
609
31
292
14
N.I. to Diluted
Common EPS
million
ttm
ttm
22
165
16
71
1.01
2.13
1.33
1.37
15
16
17
Balance Sheet
Total
Cash
million
Total
Debt
million
273
305
128
41
275
2,980
0
420
18
19
Cash Flow St.
Current
Ratio Oper. CF
million
ttm
4.69
2.15
2.6
1.19
40
181
73
16
Levered
FCF
million
ttm
(53)
(890)
59
(32)
2008
2009
Fiscal Years:
2010
2011
Periods out
Revenue
Cost of revenues
Gross margin $
Gross margin %
Operating expense (G&A)
EBITDA
Impair/Spec & (Gain) eqp. sales
Dep'n & amort.
EBIT
Interest expense/(benefit)
Earnings before taxes
Income taxes
Earnings before unconsol. affil.
Earnings from unconsol. affil.
Earnings, Internal
Earnings attrib to non-contr ints
Net earnings
NOPAT
Capital expense (net)
Working capital delta
Free cash flow
Discounted FCF
Click
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
611,456
602,347
9,110
1.5%
55,996
(46,887)
2,302
11,935
(61,124)
38,230
(99,354)
(28,167)
(71,187)
872
(70,315)
3,182
(67,133)
(32,957)
(26,491)
0
(47,513)
0
374,046
386,821
(12,775)
-3.4%
44,240
(57,015)
55,667
13,015
(125,697)
40,686
(166,383)
(36,429)
(129,954)
(565)
(130,519)
1,472
(129,047)
(89,268)
(11,807)
14,336
(73,724)
0
242,936
230,243
12,693
5.2%
51,818
(39,125)
(11,870)
13,123
(40,378)
38,966
(79,344)
(24,799)
(54,545)
(561)
(55,106)
(4,054)
(59,160)
(15,579)
(12,359)
253
(14,562)
0
688,041
641,732
46,309
6.7%
53,928
(7,619)
0
12,622
(20,241)
23,382
(43,623)
(16,907)
(26,716)
(592)
(27,308)
(2,101)
(29,409)
(3,335)
(22,455)
(5,934)
(19,101)
0
Discounting Factors
Terminal Growth
WACC
13.1%
Terminal Value Stage:
1-# Years 1-growth % 2-growth%
10
2.7%
1.3%
Forecasted Term Stg. 1 Term. Stg. 2
25,304
(27,252)
(10,371)
now thru 2017
1 to 10 yrs
Total
(12,319)
now thru
26,669
(0.70)
7,272
3,746
2,487
9,475
2012
Nov30
0.3
0.5
Quarters, FY2013
Feb28
May31
0.8
1.0
Aug31
2013
2014
Fiscal Years:
2015
1.3
1.3
2.3
3.3
Comps
347,991
13,346
2016
4.3
-2924.8%
3,133
3,133
3,133
3,133
12,534
13,971
14,175
13,724
Terminal Years:
2017
5.3
821,769
752,092
69,677
8.5%
79,139
(9,462)
0
14,750
(24,212)
19,681
(43,894)
(17,620)
(26,274)
500
(25,774)
(3,652)
(29,426)
(6,593)
(16,500)
1,516
(6,827)
(4,925)
9,011
6.3
(6,869)
(4,381)
7.3
(6,910)
(3,896)
8.3
(6,949)
(3,464)
9.3
(6,985)
(3,078)
10.3
11.3
12.3
13.3
(7,019)
(2,735)
(7,051)
(2,428)
(7,080)
(2,156)
(7,106)
(1,913)
14.3
15.3
(7,130)
(1,697)
(7,150)
(1,504)
2008
2009
Fiscal Years:
2010
2011
2012
ASSETS
Cash & cash equivalents
Restricted cash
Accounts receivable
Inventory
Assets held for sale
Invest. in direct finance leases
Equipment on operating leases
Plant & equipment
Accumulated depreciation
Net P&E
Goodwill
Intangibles & Other Assets
TOTAL ASSETS
466,425
1,231
61,116
97,759
0
0
0
136,506
0
136,506
0
99,061
862,098
420,279
1,083
28,296
41,113
0
0
0
127,974
0
127,974
0
96,902
715,647
369,121
2,525
18,712
42,866
0
0
0
132,614
0
132,614
0
90,679
656,517
350,657
1,973
44,157
113,136
0
0
0
163,521
0
163,521
0
82,613
756,057
273,896
1,973
57,188
118,804
0
0
0
177,329
0
177,329
0
75,007
704,197
0
146,604
15,313
17,628
0
306,750
0
486,295
0
71,543
15,313
15,400
0
306,750
0
409,006
2,630
64,040
0
9,102
0
308,166
0
383,937
16,858
147,448
0
7,410
0
307,762
0
479,478
(7,115)
187,945
0
6,286
0
235,608
0
422,724
0
17
99,677
199,767
0
299,461
8,618
308,079
794,374
0
17
117,060
113,116
0
230,193
8,724
238,917
647,923
0
22
172,404
20,961
0
193,387
11,469
204,856
588,793
0
26
240,906
(45,645)
0
195,286
13,570
208,856
688,333
0
26
247,298
(51,137)
0
196,186
17,563
213,749
636,473
560,129
499,647
448,236
435,706
330,664
Check
LIABILITIES
Revolving notes
A/P and other accrued
Losses in ex. of inv. of de-con sub
Deferred revenue
Deferred income taxes
Notes payable
Other liabilities
TOTAL LIABILITIES
EQUITY
Company
Preferred stock
Common stock
Additional paid-in capital
Retained earnings
Accum. other comprehensive loss
Total Equity Company
Noncontrolling interest
TOTAL EQUITY
TOTAL LIABILITIES + EQUITY
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
67,724
67,724
67,724
67,724
67,724
Nov30
Quarters, FY2013
Feb28
May31
Aug31
273,884
1,973
51,276
106,503
0
0
0
177,329
0
177,329
0
75,007
685,973
273,873
1,973
51,276
106,503
0
0
0
177,329
0
177,329
0
75,007
685,962
273,862
1,973
51,276
106,503
0
0
0
177,329
0
177,329
0
75,007
685,950
273,851
1,973
51,276
106,503
0
0
0
177,329
0
177,329
0
75,007
685,939
175,894
1,973
73,606
141,161
0
0
0
181,172
0
181,172
0
71,581
645,387
192,779
1,973
84,146
149,414
0
0
0
185,280
0
185,280
0
68,300
681,892
202,321
1,973
87,102
154,559
0
0
0
189,257
0
189,257
0
64,867
700,079
212,862
1,973
83,450
148,000
0
0
0
189,257
0
189,257
0
64,867
700,409
201,905
1,973
80,476
142,836
0
0
0
189,257
0
189,257
0
64,867
681,314
0
168,485
0
6,286
0
235,608
0
410,379
0
168,485
0
6,286
0
235,608
0
410,379
0
168,485
0
6,286
0
235,608
0
410,379
0
168,485
0
6,286
0
235,608
0
410,379
0
188,537
0
7,015
0
235,204
0
430,756
0
214,911
0
8,061
0
235,000
0
457,972
0
222,312
0
8,608
0
235,000
0
465,919
0
219,167
0
8,608
0
235,000
0
462,775
0
212,545
0
8,608
0
235,000
0
456,154
0
26
247,298
(58,264)
0
189,060
17,563
206,623
617,001
0
26
247,298
(58,275)
0
189,049
17,563
206,611
616,990
0
26
247,298
(58,286)
0
189,037
17,563
206,600
616,979
0
26
247,298
(58,298)
0
189,026
17,563
206,589
616,968
0
26
253,690
(56,699)
0
197,016
20,620
217,636
648,392
0
26
260,082
(58,351)
0
201,757
24,746
226,503
684,475
0
26
266,474
(58,901)
0
207,598
29,709
237,308
703,227
0
26
266,474
(56,179)
0
210,321
29,709
240,030
702,805
0
26
266,474
(68,607)
0
197,892
29,709
227,602
683,755
266,689
271,667
277,930
281,404
268,931
68,972
68,972
68,972
68,972
2013
(3,005)
2014
(2,583)
Fiscal Years:
2015
(3,148)
2016
(2,397)
2017
(2,441)
OPERATING ACTIVITIES
Net Earnings
Deferred income taxes
Depreciation & amortization
(Gain)/Loss on sale of equipment
Impairment & special charges
Other operating items
Change in Assets:
Accounts receivable
Inventories
Assets held for sale
Intangibles & Other Assets
Change in Liabilities
A/P and other accrued
Deferred revenue
NET CASH +/(-) OPERATING ACTIVITIES
INVESTING ACTIVITIES
Use of (investment in) restricted cash
Proceeds from sale of equipment
Investment in and advances to unconsol sub.
Acquisition
Other investing items
Capital expenditures
Capital expenditures
NET CASH +/(-) INVESTING ACTIVITIES
FINANCING ACTIVITIES
Change in Revolver
Proceeds (Repayment) of borrowings
Repayment of Subdebt
Dividends
Investment by joint venture partner
Stock options & restr. stock awds exercised
Equity Re-purchase/Retirement
Equity Issuance Proceeds
Excess Tax Benefit of stock options exercised
Other financing items
NET CASH +/(-) FINANCING ACTIVITIES
Effect of exchange rate changes
INCREASE (DECREASE) IN CASH & EQUIV.
Cash & Equivalents at Beginning of Period
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2008
Fiscal Years:
2010
2009
(67,133) (129,047)
0
0
11,935
13,015
0
0
2,302
55,667
(3,182)
(1,472)
2011
(59,160)
0
13,123
0
(11,870)
4,054
(29,409)
0
12,622
0
0
2,101
32,820
56,646
0
2,159
9,584
(1,753)
0
6,223
(25,446)
(70,269)
0
8,066
0
0
(56,078)
(75,061)
(2,228)
(47,501)
(7,503)
(6,298)
(53,600)
83,408
(1,692)
(20,620)
0
0
858
(91,166)
0
(26,491)
0
(116,799)
148
0
0
0
0
(11,807)
0
(11,659)
(1,442)
0
(927)
0
0
(12,359)
0
(14,728)
552
0
(479)
0
0
(22,455)
0
(22,382)
2,630
1,416
0
0
0
0
0
0
0
0
4,046
14,228
(404)
0
0
0
0
0
0
0
0
13,824
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(172,877) (59,160) (64,282) (29,178)
627,367 454,490 395,330 331,048
Check
454,490
11,935
395,330
24,949
331,048
38,073
301,871
48,786
s:
2012
Nov30
Quarters, FY2013
Feb28
May31
(18,551)
0
13,504
0
0
3,993
(6,683)
0
5,688
0
0
746
(13,030)
(5,668)
0
7,606
5,912
12,301
0
0
40,498
(1,124)
27,228
(19,460)
0
(1,497)
0
0
(249)
0
0
(249)
0
0
(100)
0
0
(21,456)
0
(21,556)
0
0
0
0
0
(3,750)
0
(3,750)
0
0
0
0
0
(3,750)
0
(3,750)
0
0
0
0
0
(3,750)
0
(3,750)
(23,973)
(72,154)
0
0
0
0
0
0
0
0
(96,127)
0
(90,456)
301,871
2016
(17,615)
0
14,750
0
0
4,942
(18,757)
0
14,750
0
0
5,088
(22,330)
(34,658)
0
3,427
(10,540)
(8,253)
0
3,281
(2,956)
(5,145)
0
3,433
3,652
6,560
0
0
0
0
(249)
20,052
729
(36,040)
26,374
1,046
13,657
7,400
547
5,356
(3,145)
0
8,148
0
0
0
0
0
(3,750)
0
(3,750)
0
0
0
0
0
(16,500)
0
(16,500)
0
0
0
0
0
(17,500)
0
(17,500)
0
0
0
0
0
(17,500)
0
(17,500)
0
0
0
0
0
(16,500)
0
(16,500)
7,115
(404)
0
0
0
0
0
0
0
0
6,711
0
(204)
0
0
0
0
0
0
0
0
(204)
0
0
0
0
0
(5,247)
(3,999)
(3,999)
(3,999) (45,829)
211,415 206,168 202,169 198,169 194,170
0
(4,047)
148,341
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(6,683)
0
5,688
0
0
746
2014
(17,592)
0
14,750
0
0
4,591
0
0
0
0
(6,683)
0
5,688
0
0
746
2013
(20,744)
0
14,500
0
0
2,984
0
0
0
0
0
0
0
0
0
0
0
(6,683)
0
5,688
0
0
746
Aug31
Fiscal Years:
2015
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(12,144)
144,294
0
0
0
0
0
0
0
0
0
0
0
0
(8,351)
132,150
211,415
62,481
206,168
67,716
202,169
71,704
198,169
75,693
194,170
79,681
148,341
27,553
144,294
48,485
132,150
70,171
123,799
89,064
2017
(29,426)
0
14,750
0
0
3,652
2,974
5,164
0
0
(6,621)
0
(9,508)
0
0
0
0
0
(16,500)
0
(16,500)
0
0
0
0
0
0
0
0
0
0
0
0
(26,008)
123,799
97,791
104,115
2008
2009
Fiscal Years:
2010
1.5%
-7.7%
-3.4%
-15.2%
-43.1%
-41.3%
-35.3%
5.2%
-16.1%
-25.7%
-8.1%
-1.3%
6.7%
-1.1%
-15.2%
-1.6%
4.4%
8.1%
1.7%
-9.5%
2.9%
8.7%
0.71x
6.16x
36 days
89 days
0.52x
9.41x
28 days
68 days
0.37x
5.37x
28 days
102 days
0.91x
5.67x
23 days
84 days
1.41x
7.70x
21 days
75 days
(6.5)x
3.4x
(1.2)x
(1.6)x
3.49
2.95
(5.4)x
2.0x
(1.4)x
(3.1)x
4.80
4.40
(7.9)x
1.5x
(1.0)x
(1.0)x
5.72
5.15
(42.6)x
3.4x
(0.3)x
(0.9)x
2.97
2.31
13.7x
(2.7)x
0.8x
0.2x
2.41
1.78
1.0
(0.5)
1.0
0.5
(2.1)
1.3
(0.5)
1.3
1.8
(4.3)
1.6
(0.3)
1.6
1.9
(4.0)
1.7
(0.1)
1.6
2.3
(1.3)
1.2
(0.2)
1.2
2.0
(0.4)
2011
2012
Click
's for individual BU's
LEVERAGE ANALYSIS
Operating: EBIT / Sales
(32,957)
583,492
13.1%
76,529
(109,485)
Revenue
3rd parties
COGS
(89,268)
516,489
13.1%
67,741
(157,009)
(15,579)
492,696
13.1%
64,620
(80,199)
2011
Sales+10%
688,041
756,845
(2,693)
(2,693)
641,732
705,905
(3,335)
518,586
13.1%
68,016
(71,350)
Delta
10.0%
6,753
434,958
13.1%
57,048
(50,294)
Leverage
(4.5)x
OpEx
Impairmt
EBIT
Interest
Taxes
Earnings
53,928
0
(10,312)
23,382
(16,907)
(16,787)
53,928
0
(5,681)
23,382
(14,583)
(14,480)
-44.9%
0.3x
-13.7%
(1.4)x
0.537
-0.085
-0.088
0.518
0.910
1.792
TRUE
FALSE
FALSE
0.451
-0.102
0.015
0.588
1.414
2.366
FALSE
TRUE
FALSE
Click
Click
MV Equity:
0.622
0.324
-0.234
0.511
0.709
1.933
FALSE
TRUE
FALSE
414,000
0.651
0.221
-0.580
0.607
0.523
1.423
TRUE
FALSE
FALSE
0.653
0.045
-0.203
0.647
0.370
1.512
TRUE
FALSE
FALSE
Nov30
Quarters, FY2013
Feb28
May31
Aug31
2013
7.8%
0.4%
-3.4%
-0.2%
2.1%
7.8%
0.4%
-3.5%
-0.2%
2.2%
7.8%
0.4%
-3.5%
-0.2%
2.2%
7.8%
0.4%
-3.5%
-0.2%
2.2%
0.36x
2.15x
75 days
269 days
0.36x
2.15x
75 days
269 days
0.36x
2.15x
75 days
269 days
212.0x
(34.4)x
0.2x
(0.8)x
2.48
1.87
212.0x
(34.4)x
0.2x
(0.8)x
2.48
1.87
1.2
(0.2)
1.2
2.0
(0.6)
1.2
(0.2)
1.2
2.0
(0.6)
(546)
436,195
13.1%
57,210
(57,756)
(546)
436,183
13.1%
57,208
(57,754)
2014
Fiscal Years:
2015
2016
2017
7.8%
0.4%
-11.0%
0.9%
7.0%
8.1%
1.1%
-8.9%
2.5%
7.8%
8.2%
1.1%
-8.7%
2.7%
8.2%
8.2%
0.9%
-9.0%
2.1%
7.6%
8.5%
-1.2%
-14.0%
-2.5%
3.1%
0.36x
2.15x
75 days
269 days
1.54x
6.48x
27 days
75 days
1.67x
6.98x
27 days
75 days
1.68x
6.98x
27 days
75 days
1.64x
7.11x
27 days
76 days
1.21x
5.27x
36 days
103 days
212.0x
(34.4)x
0.2x
(0.8)x
2.48
1.87
212.0x
(34.4)x
0.2x
(0.8)x
2.48
1.87
52.9x
13.3x
0.2x
(0.5)x
2.01
1.29
19.1x
3.4x
0.6x
(0.1)x
1.92
1.25
18.0x
2.5x
0.6x
(0.1)x
1.93
1.26
21.9x
2.1x
0.5x
(0.2)x
1.96
1.31
(24.8)x
(3.5)x
(0.5)x
(1.2)x
1.93
1.29
1.2
(0.2)
1.2
2.0
(0.6)
1.2
(0.2)
1.2
2.0
(0.6)
1.2
0.3
1.2
2.0
0.1
1.2
0.2
1.2
2.0
0.1
1.1
0.2
1.1
2.0
0.1
1.1
0.1
1.1
1.9
0.0
1.2
0.2
1.2
2.0
0.0
(546)
436,172
13.1%
57,207
(57,753)
2012
Sales+10%
995,761 1,095,337
(4,335)
(4,335)
915,310 1,006,841
(546)
436,161
13.1%
57,205
(57,751)
Delta
10.0%
2,204
378,254
13.1%
49,610
(47,406)
Leverage
6.5x
6,749
390,620
13.1%
51,232
(44,483)
7,127
404,292
13.1%
53,025
(45,898)
5,512
407,767
13.1%
53,481
(47,969)
2013
Sales+10%
992,698 1,091,968
(2,734)
(2,734)
915,059 1,006,565
(6,593)
395,294
13.1%
51,845
(58,438)
Delta
10.0%
63,715
0
12,402
20,969
(3,520)
(5,047)
0.453
-0.119
-0.022
0.605
0.362
1.279
TRUE
FALSE
FALSE
0.453
-0.119
-0.022
0.605
0.362
1.279
TRUE
FALSE
FALSE
63,715
0
20,447
20,969
(214)
(307)
0.453
-0.119
-0.022
0.605
0.362
1.279
TRUE
FALSE
FALSE
64.9%
(1.4)x
-93.9%
(9.4)x
0.453
-0.119
-0.022
0.605
0.362
1.279
TRUE
FALSE
FALSE
0.366
-0.123
-0.051
0.577
1.538
2.307
FALSE
TRUE
FALSE
73,194
0
1,711
20,214
(12,259)
(6,244)
0.361
-0.120
-0.012
0.542
1.665
2.437
FALSE
TRUE
FALSE
0.369
-0.118
-0.008
0.533
1.679
2.455
FALSE
TRUE
FALSE
73,194
0
9,475
20,214
(7,115)
(3,624)
0.374
-0.112
-0.019
0.537
1.636
2.416
FALSE
TRUE
FALSE
453.7%
-42.0%
0.363
-0.141
-0.117
0.545
1.206
1.855
FALSE
TRUE
FALSE
Leverage
45.4x
(0.1)x
(4.2)x
Fiscal Years:
2010
2009
1,416
0
Principal Balance
Term Loan #1
Senior Notes
Term Loan #2
Term Loan #3
Total Principal Balance
check against Balance Sheet
Interest Expense
Term Loan #1
Senior Notes
Term Loan #2
Term Loan #3
Total Interest Expense
0
0
71,750
235,000
306,750
306,750
0
71,750
235,000
1,012
0
307,762
0
32,789
35,255
31,592
32,789
35,255
2,770
19,681
297
0
22,748
0
2,630
2,630
18,250
(1,392)
16,858
71,750
235,000
1,416
0
308,166
0
0
(404)
0
(404)
31,592
REVOLVING NOTES
Draws / (Paybacks) of Revolvers
Revolver
Line of Credit
Ending (outstanding) Balance
check against Balance Sheet
71,750
235,000
1,416
2011
729
5,909
6,638
3,233
4,665
7,897
1,868
1,843
3,711
303
330
633
38,230
40,686
38,966
23,382
:
2012
Nov30
(71,750)
0
(404)
0
(72,154)
0
0
0
0
235,000
608
0
235,608
0
0
235,000
608
0
235,608
0
0
0
235,000
608
0
235,608
0
Aug31
2013
0
0
0
235,000
608
0
235,608
0
2014
0
(404)
0
(404)
0
0
235,000
608
0
235,608
0
Fiscal Years:
2015
0
0
(204)
0
(204)
0
0
235,000
204
0
235,204
0
0
0
0
0
0
0
235,000
(0)
0
235,000
0
0
0
0
235,000 235,000
(0)
0
235,000 235,000
0
0
4,920
14
0
4,935
0
4,920
14
0
4,935
0
4,920
14
0
4,935
0
19,681
14
0
19,695
0
19,681
0
0
19,681
0
19,681
0
0
19,681
19,681
400
119
519
400
119
519
400
119
519
400
119
519
400
119
519
450
119
569
500
119
619
20,969
5,453
5,453
5,453
5,453
20,214
20,250
20,300
19,681
485
117
603
2016
0
4,920
14
0
4,935
(8,250)
1,135
(7,115)
0
0
0
345
19,681
339
0
20,366
Quarters, FY2013
Feb28
May31
19,681
0
:
2017
0
0
235,000
235,000
0
19,681
19,681
0
0
19,681
0
Business Unit 1
Business Drivers (totals in 000's)
2013
Production by Product Type
Product 1
Product 2
Product 3
Product 4
Small Product 5
Small Product 5
Medium Product 5
Medium Product 5
Large Product 5
Large Product 5
Product 6
Other #1
Other #2
Other #3
Total
Facility
BBB
CCC
CCC
CCC
CCC
AAA
CCC
AAA
CCC
AAA
AAA
Facility
BBB
CCC
CCC
CCC
CCC
AAA
CCC
AAA
CCC
AAA
AAA
Gross Margin %
Product 1
Product 2
Product 3
Product 4
Small Product 5
Small Product 5
Medium Product 5
Medium Product 5
Facility
BBB
CCC
CCC
CCC
CCC
AAA
CCC
AAA
Fiscal Years:
2015
2014
3,786
33
325
1,311
4,621
4,946
325
1,429
325
1,287
1,440
1,129
973
4,195
4,712
4,736
244
125
430
191
516
11,334
12,771
Inflation:
$63
$77
$128
$102
12,975
4.08%
$66
$80
$133
$106
$0
$67
$0
$80
$0
$0
$102
$0
$0
$0
3.02%
$67
$82
$137
$109
$0
$69
$0
$82
$0
$0
$105
$0
$0
$0
7.0%
8%
8%
7%
7.0%
7.0%
8%
7%
8%
7%
8%
9%
9%
8%
9%
9%
$64
$77
$98
Large Product 5
Large Product 5
Product 6
Other #1
Other #2
Other #3
CCC
AAA
AAA
Capital Expenditures
Maintenance
Growth
Total Capital Expenditures
Revenue
Product 1
Product 2
Product 3
Product 4
Small Product 5
Small Product 5
Medium Product 5
Medium Product 5
Large Product 5
Large Product 5
Product 6
Other #1
Other #2
Other #3
Total Revenue
Facility
BBB
CCC
CCC
CCC
CCC
AAA
CCC
AAA
CCC
AAA
AAA
Cost of Revenues
Facility
Product 1
BBB
Product 2
CCC
Product 3
CCC
Product 4
CCC
Small Product 5
CCC
Small Product 5
AAA
Medium Product 5
CCC
Medium Product 5
AAA
Large Product 5
CCC
Large Product 5
AAA
Product 6
AAA
Other #1
Other #2
Other #3
Overhead (Under)/Over Absorbed
Total Cost of Revenues
10%
7%
7%
7%
9%
$13,000
$0
$13,000
$14,000
$0
$14,000
$14,000
$0
$14,000
$238,284
$2,486
$41,438
$133,722
$0
$92,343
$0
$321,917
$0
$0
$23,796
$0
$0
$0
$853,986
$302,685
$0
$43,130
$151,711
$0
$75,370
$0
$376,372
$0
$0
$43,681
$0
$0
$0
$992,948
$333,745
$0
$44,431
$140,756
$0
$66,917
$0
$389,698
$0
$0
$53,999
$0
$0
$0
$1,029,545
$221,604
$2,287
$38,123
$124,361
$0
$84,956
$0
$296,164
$0
$0
$21,416
$0
$0
$0
$281,497
$0
$39,679
$141,091
$0
$68,587
$0
$342,498
$0
$0
$40,624
$0
$0
$0
$310,383
$0
$40,876
$130,903
$0
$60,894
$0
$354,625
$0
$0
$49,139
$0
$0
$0
$788,911
$913,976
$946,820
Gross Margin $
Facility
Product 1
BBB
Product 2
CCC
Product 3
CCC
Product 4
CCC
Small Product 5
CCC
Small Product 5
AAA
Medium Product 5
CCC
Medium Product 5
AAA
Large Product 5
CCC
Large Product 5
AAA
Product 6
AAA
Other #1
Other #2
Other #3
Overhead (Under)/Over Absorbed
Total Cost of Revenues
$16,680
$199
$3,315
$9,361
$0
$7,387
$0
$25,753
$0
$0
$2,380
$0
$0
$0
$0
$65,075
$21,188
$0
$3,450
$10,620
$0
$6,783
$0
$33,873
$0
$0
$3,058
$0
$0
$0
$0
$78,973
$23,362
$0
$3,554
$9,853
$0
$6,022
$0
$35,073
$0
$0
$4,860
$0
$0
$0
$0
$82,725
Years:
2016
2017
4,946
1,625
325
837
325
837
973
973
4,736
3,000
191
516
191
860
12,524
7,811
2.00%
$69
$84
$139
$112
$0
$70
$0
$84
$0
$0
$107
$0
$0
$0
2.00%
$70
$85
$142
$114
$0
$72
$0
$86
$0
$0
$109
$0
$0
$0
7.0%
7.0%
8%
7%
8%
7%
9%
9%
9%
9%
P&L
Revenue
Cost of revenues
Gross margin $
Gross margin %
AAA P&L
Revenue
Cost of revenues
OH Variance %
OH Variance $
Gross margin $
Gross margin %
Operating expense (SG&A)
AAA OpEx
BBB OpEx
CCC OpEx
Mgmt Fee
Partner Mgmt Fee %
Total operating expense
Net (pretax) earnings
BBB AAA
AAA
Total Pretax Earnings
Taxes
BBB AAA
AAA
Total Taxes
After-tax Profit
Earnings to Minority Interest
3.00%
1.50%
2.50%
97.50%
40%
40%
50%
7%
9%
7%
9%
$14,000
$0
$14,000
$14,000
$0
$14,000
$340,420
$0
$45,319
$93,321
$0
$68,255
$0
$397,492
$0
$0
$55,079
$0
$0
$0
$999,886
$114,085
$0
$46,226
$95,188
$0
$69,620
$0
$256,804
$0
$0
$93,634
$0
$0
$0
$675,556
$316,591
$0
$41,694
$86,789
$0
$62,112
$0
$361,718
$0
$0
$50,122
$0
$0
$0
$106,099
$0
$42,528
$88,525
$0
$63,354
$0
$233,691
$0
$0
$85,207
$0
$0
$0
$919,024
$619,403
$23,829
$0
$3,626
$6,532
$0
$6,143
$0
$35,774
$0
$0
$4,957
$0
$0
$0
$0
$80,862
$7,986
$0
$3,698
$6,663
$0
$6,266
$0
$23,112
$0
$0
$8,427
$0
$0
$0
$0
$56,152
2013
2014
Fiscal Years:
2015
2016
2017
853,986
788,911
65,075
7.6%
992,948
913,976
78,973
8.0%
1,029,545
946,820
82,725
8.0%
999,886
919,024
80,862
8.1%
675,556
619,403
56,152
8.3%
438,056
402,536
-0.25%
(1,095)
36,616
8.4%
495,423
451,709
0.00%
(1,239)
44,953
9.1%
510,613
464,658
0.00%
(1,277)
47,232
9.3%
520,826
473,951
0.00%
(1,302)
48,176
9.2%
420,058
382,252
0.00%
(1,050)
38,855
9.3%
1,755
2,806
2,395
13,142
6,571
26,668
1,878
2,890
2,587
14,863
7,431
29,649
2,009
2,977
2,794
15,318
7,659
30,757
2,009
2,977
2,794
15,625
7,812
31,217
2,009
2,977
2,794
12,602
6,301
26,682
249
9,698
9,947
383
14,922
15,304
412
16,063
16,474
424
16,536
16,960
304
11,869
12,173
99
3,879
3,979
5,968
2,984
153
5,969
6,122
9,183
4,591
165
6,425
6,590
9,885
4,942
170
6,614
6,784
10,176
5,088
122
4,748
4,869
7,304
3,652
Business Unit 1
Historical & Projected P&L ($000's)
2008
Fiscal Years:
2009
2010
2011
Periods out
Revenue
Cost of revenues
Gross margin $
Gross margin %
Operating expense (G&A)
EBITDA
Impairment & special charges
Dep'n & amort.
EBIT
Interest expense/(benefit)
Earnings before taxes
Income taxes
Earnings before unconsol. affil.
Earnings from unconsol. affil.
Earnings, Internal
Earnings attrib to non-contr ints
Net earnings
NOPAT
Capital expense (net)
Working capital delta
Free cash flow
Discounted FCF
400,939
403,769
(2,830)
-0.7%
15,434
(18,264)
Tax Rate
Terminal Stage1 # Yrs beyond 2017
Terminal Stage1 Growth %
Terminal Stage2 Growth %
WACC
Valuation
40%
Term'l Per.
10
12.6
3.0%
24,763
2.0%
Perp. DCF
13.1%
159,141 337,419
8,435
(26,698)
729
(27,427)
(489)
(26,939)
872
(26,067)
3,182
(22,885)
(26,210)
(19,719)
0
(37,494)
DCF
Deliveries
5,786
Quarters, FY201
2012
Nov30
-2.4
-2.1
Comps
2,611
112.0%
1,907
8,735
12,246
2,833
Quarters, FY2013
Feb28
May31
-1.9
-1.6
Aug31
2013
2014
Fiscal Years:
2015
-1.4
-1.4
-0.4
0.6
2,833
2,833
2,833
853,986
788,911
65,075
7.6%
26,668
38,406
0
9,750
28,656
414
28,242
11,297
16,945
250
17,195
(2,984)
14,211
17,359
(13,000)
(31,523)
(17,414)
(20,575)
11,334
992,948 1,029,545
913,976
946,820
78,973
82,725
8.0%
8.0%
29,649
30,757
49,324
51,967
0
0
10,250
10,500
39,074
41,467
450
500
38,624
40,967
15,450
16,387
23,174
24,580
500
500
23,674
25,080
(4,591)
(4,942)
19,083
20,138
23,624
25,080
(14,000)
(14,000)
6,513
(506)
26,387
21,075
27,562
19,461
12,771
12,975
Terminal Years:
2016
2017
1.6
2.6
999,886
919,024
80,862
8.1%
31,217
49,645
0
10,500
39,145
0
39,145
15,658
23,487
500
23,987
(5,088)
18,899
23,487
(14,000)
6,742
26,729
21,813
12,524
3.6
4.6
675,556
619,403
56,152
8.3%
26,682
29,470
0
10,500
18,970
0
18,970
7,588
11,382
500
11,882
(3,652)
8,230
11,382
(14,000)
1,854
9,736 10,028 10,329
7,024 6,396 5,824
7,811
5.6
6.6
10,639 10,958
5,303 4,829
7.6
8.6
9.6
10.6
11.6
12.6
Business Unit 1
Historical & Projected Balance Sheet ($000's)
Fiscal Years:
2010
2008
2009
2011
2012
36,513
14,402
6,967
14,332
40,117
65,488
17,380
27,188
12,470
29,983
38,470
99,345
50,019
103,895
136,506
127,974
132,614
163,521
177,329
136,506
127,974
132,614
163,521
177,329
278,623
186,945
175,068
308,304
345,575
0
98,208
0
47,311
0
44,793
18,250
129,475
(8,250)
164,360
4,407
3,850
2,275
1,852
1,571
1,416
1,012
608
102,615
51,161
48,485
150,589
158,289
176,008
135,784
126,583
157,715
187,286
176,008
135,784
126,583
157,715
187,286
176,008
278,623
135,784
186,945
126,583
175,068
157,715
308,304
187,286
345,575
39,502
7,810
13,455
2,314
ASSETS
Cash & cash equivalents
Restricted cash
Accounts receivable
Inventory
Assets held for sale
Invest. in direct finance leases
Equipment on operating leases
Plant & equipment
Accumulated depreciation
Net P&E
Goodwill
Intangibles & Other Assets
TOTAL ASSETS
LIABILITIES
Revolving notes
A/P and other accrued
Losses in ex. of inv. of de-con sub
Deferred revenue
Deferred income taxes
Notes payable
Other liabilities
TOTAL LIABILITIES
EQUITY
Company
Preferred stock
Common stock
Additional paid-in capital
Retained earnings
Accum. other comprehensive loss
Total Equity Company
Noncontrolling interest
TOTAL EQUITY
TOTAL LIABILITIES + EQUITY
Net Working Capital
Check
Ratio Toggles
Inventory Turns - COGS/Invntry
Days Receivable - AR/Revenue
(4,615)
6.17x
37 days
9.42x
28 days
5.38x
28 days
5.68x
23 days
7.71x
21 days
89 days
67 days
101 days
84 days
75 days
Nov30
Quarters, FY2013
Feb28
May31
Fiscal Years:
2015
Aug31
2013
2014
20,623
26,914
33,205
39,497
37,477
77,077
44,107
91,594
44,107
91,594
44,107
91,594
44,107
91,594
63,352
121,701
177,329
2016
2017
112,461
157,597
181,899
73,627
130,877
76,323
135,562
72,671
129,002
69,698
123,838
181,172
185,280
189,257
189,257
189,257
177,329
181,172
185,280
189,257
189,257
189,257
352,527
403,702
466,862
513,602
548,527
564,691
0
0
0
144,899 144,899 144,899
0
144,899
0
162,546
0
188,248
0
194,986
0
191,516
0
185,233
2,015
2,152
2,152
2,152
1,571
1,571
1,571
1,571
1,754
608
608
608
608
204
147,079
164,504
190,263
197,138
193,668
187,385
204,201
242,204
279,182
319,613
357,256
379,748
204,201
242,204
279,182
319,613
357,256
379,748
204,201
351,279
242,204
406,707
279,182
469,445
319,613
516,750
357,256
550,923
379,748
567,132
58,230
91,318
127,208
165,603
188,050
(0)
(0)
1,248
1,248
1,248
1,248
(3,005)
(2,583)
(3,148)
(2,397)
(2,441)
2.15x
75 days
2.15x
75 days
2.15x
75 days
2.15x
75 days
6.48x
27 days
6.98x
27 days
6.98x
27 days
7.12x
27 days
5.00x
38 days
(plug to Balance)
75 days
75 days
75 days
76 days
109 days
(plug to Balance)
Business Unit 1
Historical & Projected Statement of Cash Flows ($000's)
2008
OPERATING ACTIVITIES
Net Earnings
Deferred income taxes
Depreciation & amortization
(Gain)/Loss on sale of equipment
Impairment & special charges
Other operating items
Change in Assets:
Accounts receivable
Inventories
Assets held for sale
Intangibles & Other Assets
Change in Liabilities
A/P and other accrued
Deferred revenue
NET CASH +/(-) OPERATING ACTIVITIES
INVESTING ACTIVITIES
Use of (investment in) restricted cash
Proceeds from sale of equipment
Investment in and advances to unconsol sub.
Acquisition
Other investing items
Capital expenditures (maintenance)
Capital expenditures (growth)
NET CASH +/(-) INVESTING ACTIVITIES
FINANCING ACTIVITIES
Change in Revolver
Proceeds (Repayment) of borrowings
Repayment of Subdebt
Dividends
Investment by joint venture partner
Stock options & restr. stock awds exercised
Equity Re-purchase/Retirement
Equity Issuance Proceeds
Excess Tax Benefit of stock options exercised
Other financing items
NET CASH +/(-) FINANCING ACTIVITIES
Effect of exchange rate changes
INCREASE (DECREASE) IN CASH & EQUIV.
Cash & Equivalents at Beginning of Period
2009
Fiscal Years:
2010
2011
552
0
8,361
0
(1,472)
0
4,054
0
2,101
22,736
38,300
0
0
4,910
(2,795)
0
0
(26,000)
(69,362)
0
0
(50,897) (2,518)
(557) (1,575)
(17,632) (23,638) (17,267)
84,681
(423)
(90)
(19,719)
0
(8,029)
0
(7,702)
0
(19,150)
(19,719)
(8,029)
(7,702)
(19,150)
0
0
0
1,416
18,250
(404)
1,416
17,846
(1,394)
(27,142)
28,078
8,435
(3,589) (27,142)
17,991
27,142
(28,536)
35,503
rs:
2012
Nov30
Quarters, FY2013
Feb28
May31
Aug31
2013
Fiscal Years:
2014
2015
2016
2017
12,670
0
8,800
3,366
0
2,438
3,366
0
2,438
3,366
0
2,438
3,366
0
2,438
14,211
0
9,750
19,083
0
10,250
20,138
0
10,500
18,899
0
10,500
8,230
0
10,500
0
3,993
0
746
0
746
0
746
0
746
0
2,984
0
4,591
0
4,942
0
5,088
0
3,652
(11,548)
(4,550)
0
0
5,912
12,301
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(19,245)
(30,107)
0
0
(10,275)
(9,176)
0
0
(2,696)
(4,684)
0
0
3,652
6,560
0
0
2,974
5,164
0
0
34,885
(281)
43,969
(19,460)
0
5,302
0
0
6,550
0
0
6,550
0
0
6,550
17,646
182
(4,578)
25,703
262
40,437
6,738
137
35,075
(3,470)
0
41,229
(6,283)
0
24,236
0
(18,500)
0
(3,250)
0
(3,250)
0
(3,250)
0
(3,250)
(18,500)
(3,250)
(3,250)
(3,250)
(3,250)
0
(13,000)
0
(13,000)
0
(14,000)
0
(14,000)
0
(14,000)
0
(14,000)
0
0
(14,000) (14,000)
0
0
(14,000) (14,000)
(26,500)
(404)
0
0
0
0
0
0
0
0
8,250
(404)
0
(204)
0
0
0
0
0
0
(26,904)
7,846
(204)
27,229
19,556
10,236
46,785
(1,435)
(28,536)
2,052
(29,971)
3,300
(27,919)
3,300
(24,619)
3,300
(21,319)
(9,732)
(18,019)
26,233
(27,751)
21,075
(1,519)
(29,971)
44,303
(27,919)
48,542
(24,619)
51,533
(21,319)
54,524
(18,019)
57,516
(27,751)
65,228
(1,519)
78,596
19,556
46,785
57,021
92,905
110,813
124,878
Business Unit 2
Business Drivers (totals in 000's)
2013
Production by Type
Product 1
Product 2
Product 3
Total
Avg Sales Price (PLN)
Product 1
Product 2
Product 3
Gross Margin %
Product 1
Product 2
Product 3
2014
1,200
1,200
Fiscal Years:
2015
1,200
1,200
$346
2016
1,200
1,200
$355
1,200
1,200
$363
$363
8.7%
8.7%
8.7%
8.7%
3.00
3.00
3.00
3.00
$2,000
$0
$2,000
$2,500
$0
$2,500
$2,500
$0
$2,500
$2,500
$0
$2,500
Revenue (USD)
Product 1
Product 2
Product 3
Total Revenue
$138,220
$0
$0
$138,220
$141,853
$0
$0
$141,853
$145,399
$0
$0
$145,399
$145,399
$0
$0
$145,399
$126,148
$0
$0
$126,148
$129,452
$0
$0
$129,452
$132,689
$0
$0
$132,689
$132,689
$0
$0
$132,689
Gross Margin $
Product 1
Product 2
Product 3
Total Cost of Revenues
$12,072
$0
$0
$12,072
$12,401
$0
$0
$12,401
$12,711
$0
$0
$12,711
$12,711
$0
$0
$12,711
Exchange Rate
Capital Expenditures
Maintenance
Growth
Total Capital Expenditures
2017
1,200
1,200
$363
8.7%
3.00
$2,500
$0
$2,500
$145,399
$0
$0
$145,399
$132,689
$0
$0
$132,689
$12,711
$0
$0
$12,711
2013
P&L
Revenue
Cost of revenues
Gross margin $
Gross margin %
OpEx (SG&A
Biz2 Mgmt Fee
Other
Total OpEx
138,220
126,148
12,072
8.7%
$7,764
$380
$1,122
$9,266
2014
141,853
129,452
12,401
8.7%
$8,153
$380
$1,178
$9,711
Fiscal Years:
2015
145,399
132,689
12,711
8.7%
$8,560
$380
$1,237
$10,177
cal Years:
2016
145,399
132,689
12,711
8.7%
$8,560
$380
$1,237
$10,177
2017
145,399
132,689
12,711
8.7%
$8,560
$380
$1,237
$10,177
Business Unit 2
Historical & Projected P&L ($000's)
2008
2009
Fiscal Years:
2010
Revenue
Cost of revenues
Gross margin $
Gross margin %
Operating expense (G&A)
EBITDA
Impairment & special charges
Dep'n & amort.
EBIT
Interest expense/(benefit)
Earnings before taxes
Income taxes
Earnings before unconsol. affil.
Earnings from unconsol. affil.
Earnings, Internal
Earnings attrib to non-contr ints
Net earnings
NOPAT
Capital expense (net)
Working capital delta
Free cash flow
Discounted FCF
209,873
198,972
10,901
5.2%
8,415
2,486
143,868
131,166
12,702
8.8%
7,380
5,322
80,734
69,329
11,405
14.1%
6,991
4,414
2,832
(346)
5,909
(6,255)
0
(6,255)
1,914
3,407
4,665
(1,258)
(2,501)
1,243
1,909
2,505
1,843
662
(312)
974
(6,255)
1,243
974
(6,255)
(346)
(4,393)
0
(1,907)
1,243
5,908
(1,080)
3,431
10,173
Tax Rate
Terminal Stage1 # Yrs beyond 2017
Terminal Stage1 Growth %
Terminal Stage2 Growth %
WACC
Valuation
18%
10
3.0%
1.0%
13.1%
(2,638)
10,572
DCF
Comps
Deliveries
1,486
974
2,817
(1,012)
(1,631)
2,083
Quarters, FY20
2011
2012
Nov30
Periods out
-2.4
-2.1
Term'l Per.
12.6
(830)
Perp. DCF
1,135
-500.7%
580
740
1,100
300
Quarters, FY2013
Feb28 May31
-1.9
-1.6
Aug31
2013
-1.4
-1.4
Fiscal Years:
2014
2015
2016
-0.4
0.6
1.6
Terminal Years:
2017
2.6
300
300
300
1,200
1,200
1,200
1,200
1,200
3.6
(367)
(234)
4.6
(378)
(213)
5.6
(389)
(194)
6.6
(401)
(177)
7.6
(413)
(161)
8.6
(425)
(146)
9.6
(438)
(133)
10.6
(451)
(121)
11.6
(464)
(110)
12.6
(478)
(101)
Business Unit 2
Historical & Projected Balance Sheet ($000's)
2008
Fiscal Years:
2010
2009
2011
2012
ASSETS
Cash & cash equivalents
Restricted cash
Accounts receivable
Inventory
Assets held for sale
Invest. in direct finance leases
Equipment on operating leases
Plant & equipment
Accumulated depreciation
Net P&E
Goodwill
Intangibles & Other Assets
TOTAL ASSETS
LIABILITIES
Revolving notes
A/P and other accrued
Losses in ex. of inv. of de-con sub
Deferred revenue
Deferred income taxes
Notes payable
Other liabilities
TOTAL LIABILITIES
7,423
12,203
6,824
13,134
20,999
32,272
10,915
13,925
6,241
12,883
5,687
13,791
7,169
14,909
53,271
32,263
31,327
26,302
35,212
0
48,396
0
24,232
2,630
19,247
(1,392)
17,973
1,135
23,586
6,611
5,775
3,413
2,779
2,357
55,006
30,007
25,289
19,360
27,078
(1,736)
2,257
6,038
6,942
8,134
EQUITY
Company
Preferred stock
Common stock
Additional paid-in capital
Retained earnings
Accum. other comprehensive loss
Total Equity Company
Noncontrolling interest
TOTAL EQUITY
TOTAL LIABILITIES + EQUITY
(1,736)
2,257
6,038
6,942
8,134
(1,736)
53,271
2,257
32,263
6,038
31,327
6,942
26,302
8,134
35,212
(1,736)
2,257
8,667
5,550
9,269
6.17x
37 days
9.42x
28 days
5.38x
28 days
5.68x
23 days
7.71x
21 days
Check
Ratio Toggles
Inventory Turns - COGS/Invntry
Days Receivable - AR/Revenue
89 days
67 days
101 days
84 days
75 days
Nov30
Quarters, FY2013
Feb28
May31
Fiscal Years:
2015
Aug31
2013
2014
13,612
14,090
14,568
15,046
11,157
14,488
7,169
14,909
7,169
14,909
7,169
14,909
7,169
14,909
10,254
19,460
35,690
36,168
36,645
0
23,586
0
23,586
2,357
2016
2017
16,365
18,517
20,007
10,518
18,537
10,779
18,998
10,779
18,998
10,779
18,998
37,123
40,871
43,543
46,141
48,294
49,783
0
23,586
0
23,586
0
25,991
0
26,663
0
27,326
0
27,651
0
27,313
2,357
2,357
2,357
2,631
3,023
3,228
3,228
3,228
25,943
25,943
25,943
25,943
28,622
29,686
30,554
30,879
30,541
9,747
10,225
10,703
11,181
12,249
13,858
15,588
17,415
19,242
9,747
10,225
10,703
11,181
12,249
13,858
15,588
17,415
19,242
9,747
35,690
10,225
36,168
10,703
36,645
11,181
37,123
12,249
40,871
13,858
43,543
15,588
46,141
17,415
48,294
19,242
49,783
12,249
13,858
15,588
17,415
19,242
2.12x
76 days
2.12x
76 days
2.12x
76 days
2.12x
76 days
6.48x
27 days
6.98x
27 days
6.98x
27 days
6.98x
27 days
6.98x
27 days
(plug to Balance)
75 days
75 days
75 days
76 days
75 days
(plug to Balance)
Business Unit 2
Historical & Projected Statement of Cash Flows ($000's)
2008
OPERATING ACTIVITIES
Net Earnings
Deferred income taxes
Depreciation & amortization
(Gain)/Loss on sale of equipment
Impairment & special charges
Other operating items
Change in Assets:
Accounts receivable
Inventories
Assets held for sale
Intangibles & Other Assets
Change in Liabilities
A/P and other accrued
Deferred revenue
NET CASH +/(-) OPERATING ACTIVITIES
INVESTING ACTIVITIES
Use of (investment in) restricted cash
Proceeds from sale of equipment
Investment in and advances to unconsol sub.
Acquisition
Other investing items
Capital expenditures (maintenance)
Capital expenditures (growth)
NET CASH +/(-) INVESTING ACTIVITIES
FINANCING ACTIVITIES
Change in Revolver
Proceeds (Repayment) of borrowings
Repayment of Subdebt
Dividends
Investment by joint venture partner
Stock options & restr. stock awds exercised
Equity Re-purchase/Retirement
Equity Issuance Proceeds
Excess Tax Benefit of stock options exercised
Other financing items
NET CASH +/(-) FINANCING ACTIVITIES
Effect of exchange rate changes
INCREASE (DECREASE) IN CASH & EQUIV.
Cash & Equivalents at Beginning of Period
Fiscal Years:
2010
2009
(6,255)
2,832
1,243
0
1,914
974
0
1,909
0
0
0
0
0
0
10,084
18,346
0
0
4,674
1,042
0
0
(24,164)
(836)
6,589
(4,985)
(2,362)
1,253
(3,423)
(4,393)
0
(4,393)
(7,816)
4,984
0
(1,080)
0
(1,080)
2011
(456)
0
1,583
0
0
554
(907)
0
0
(1,274)
(634)
(1,134)
0
(1,012)
0
(1,012)
0
(1,806)
0
(1,806)
0
0
2,630
0
(4,022)
0
2,630
(4,022)
2,870
2,677
(6,961)
5,547
5,509
(2,832)
(2,832)
2,832
2,677
4,746
5,547
6,656
(1,414)
8,238
2012
Nov30
(948)
0
1,798
Quarters, FY2013
Feb28 May31 Aug31
2013
Fiscal Years:
2015
2014
2016
2017
68
0
500
68
0
500
68
0
500
68
0
500
563
0
2,000
468
0
2,000
135
0
2,250
232
0
2,250
232
0
2,250
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(1,482)
(1,118)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(3,085)
(4,551)
0
0
0
0
0
0
0
0
0
0
5,613
(421)
3,441
0
0
568
0
0
568
0
0
568
0
0
568
2,406
273
(2,393)
0
0
0
(1,456)
0
(1,456)
0
(500)
0
(500)
0
(500)
0
(500)
0
(500)
0
(500)
0
(500)
0
(500)
0
(2,000)
0
(2,000)
(265)
923
0
0
(260)
(461)
0
0
672
392
4,191
663
205
2,532
325
0
2,808
0
(2,500)
0
(2,500)
0
(2,500)
0
(2,500)
0
(2,500)
0
(2,500)
(338)
0
2,144
0
(2,500)
0
(2,500)
2,527
0
0
0
0
0
0
0
0
0
(1,135)
0
0
0
0
0
0
0
0
0
2,527
(1,135)
68
3,097
68
3,165
68
3,233
68
3,301
(5,528)
3,369
4,512
(1,414)
1,691
(2,159)
32
(468)
308
(437)
(356)
(129)
3,097
10,036
3,165
3,233
3,301
10,446
10,856
11,266
3,369
11,676
(2,159)
13,316
(468)
14,956
(437)
16,801
(129)
18,646
(485)
20,491
Fiscal Years:
2009
2010
Quarters, FY2
2011
2012
Nov30
Periods out
-2.4
-2.1
644
1,095
(395)
(438)
1,039
1,533
161.3%
140.0%
32,148
31,169
(31,109) (29,636)
2,302
55,667
668
1,544
(34,079) (86,847)
31,592
32,789
(65,672) (119,635)
(27,678) (30,649)
(37,993) (88,986)
0
0
(37,993) (88,986)
893
(437)
1,330
148.9%
33,441
(32,111)
(11,870)
2,063
(22,304)
35,255
(57,559)
(25,874)
(31,685)
46
(31,639)
600
(491)
1,091
181.8%
27,038
(25,947)
316
(282)
598
189.2%
30,911
(30,313)
123
0
123
100.0%
9,315
(9,192)
2,678
(28,625)
22,451
(51,076)
(21,571)
(29,506)
0
(29,506)
2,906
(33,219)
20,027
(53,245)
(22,973)
(30,272)
0
(30,272)
2,750
(11,942)
4,920
(16,862)
(6,745)
(10,117)
0
(10,117)
(37,993)
(6,401)
(2,379)
0
(8,112)
(31,639)
3,570
(3,645)
3,861
5,849
(29,506)
(7,054)
(1,500)
7,431
1,556
(30,272)
(10,246)
(1,500)
7,185
(1,655)
(2,212)
(10,117)
(5,197)
0
0
(88,986)
(56,197)
(2,698)
1,324
(56,028)
40%
Term'l Per.
10
12.6
2.0%
(34,304)
1.0%
Perp. DCF
13.1%
(168,821)
0
DCF
Comps
-100.0%
Quarters, FY2013
Feb28 May31
-1.9
-1.6
Aug31
2013
2014
-1.4
-1.4
-0.4
Fiscal Years:
2015
2016
0.6
1.6
Terminal Years:
2017
2.6
123
0
123
100.0%
9,315
(9,192)
123
0
123
100.0%
9,315
(9,192)
123
0
123
100.0%
9,315
(9,192)
492
0
492
100.0%
37,259
(36,767)
555
0
555
100.0%
40,279
(39,724)
814
0
814
100.0%
42,280
(41,466)
814
0
814
100.0%
42,280
(41,466)
814
0
814
100.0%
42,280
(41,466)
2,750
(11,942)
4,920
(16,862)
(6,745)
(10,117)
0
(10,117)
2,750
(11,942)
4,920
(16,862)
(6,745)
(10,117)
0
(10,117)
2,750
(11,942)
4,920
(16,862)
(6,745)
(10,117)
0
(10,117)
2,750
(39,517)
19,681
(59,198)
(23,679)
(35,519)
0
(35,519)
2,500
(42,224)
19,681
(61,905)
(24,762)
(37,143)
0
(37,143)
2,000
(43,466)
19,681
(63,147)
(25,259)
(37,888)
0
(37,888)
2,000
(43,466)
19,681
(63,147)
(25,259)
(37,888)
2,000
(43,466)
19,681
(63,147)
(25,259)
(37,888)
(37,888)
(37,888)
(35,519)
(15,837)
(1,500)
3,700
(10,887)
(12,864)
(37,143)
(17,462)
(1,000)
3,673
(12,289)
(12,836)
(37,888)
(18,207)
(1,000)
3,638
(13,569)
(12,530)
(37,888)
(18,207)
0
0
(16,207)
(13,226)
(37,888)
(18,207)
0
0
(16,207)
(11,693)
3.6
(16,531)
(10,544)
4.6
(16,862)
(9,507)
5.6
(17,199)
(8,573)
6.6
(17,543)
(7,731)
7.6
(17,894)
(6,971)
8.6
(18,252)
(6,286)
9.6
(18,617)
(5,668)
10.6
(18,989)
(5,111)
11.6
(19,369)
(4,609)
12.6
(19,756)
(4,156)
Fiscal Years:
2010
2011
2008
2009
429,912
1,231
0
0
398,454
1,083
0
0
356,918
2,525
0
0
336,866
1,973
0
0
99,061
530,204
96,902
496,439
90,679
450,122
82,613
421,452
0
0
15,313
6,611
0
0
15,313
5,775
0
0
0
3,413
0
0
0
2,779
306,750
306,750
306,750
306,750
328,674
327,838
310,163
309,529
ASSETS
Cash & cash equivalents
Restricted cash
Accounts receivable
Inventory
Assets held for sale
Invest. in direct finance leases
Equipment on operating leases
Plant & equipment
Accumulated depreciation
Net P&E
Goodwill
Intangibles & Other Assets
TOTAL ASSETS
LIABILITIES
Revolving notes
A/P and other accrued
Losses in ex. of inv. of de-con sub
Deferred revenue
Deferred income taxes
Notes payable
Other liabilities
TOTAL LIABILITIES
EQUITY
Company
Preferred stock
Common stock
Additional paid-in capital
Retained earnings
Accum. other comprehensive loss
Total Equity Company
Noncontrolling interest
TOTAL EQUITY
TOTAL LIABILITIES + EQUITY
17
99,677
25,495
17
117,060
(24,924)
22
172,404
(111,660)
26
240,906
(210,302)
125,188
8,618
133,806
462,480
92,153
8,724
100,877
428,715
60,766
11,469
72,235
382,398
30,630
13,570
44,199
353,728
522,362
489,581
444,184
416,700
Check
Ratio Toggles
Inventory Turns - COGS/Invntry
Days Receivable - AR/Revenue
67,724
67,724
67,724
67,724
0.00x
0 days
0.00x
0 days
0.00x
0 days
0.00x
0 days
0 days
0 days
0 days
0 days
:
2012
246,430
1,973
0
0
Nov30
Quarters, FY2013
Feb28
May31
Aug31
2013
2014
239,650
1,973
0
0
232,869
1,973
0
0
219,309
1,973
0
0
127,260
1,973
0
0
101,214
1,973
0
0
73,496
1,973
0
0
226,089
1,973
0
0
Fiscal Years:
2015
75,007
323,410
75,007
316,630
75,007
309,850
75,007
303,069
75,007
296,289
71,581
200,814
68,300
171,486
64,867
140,336
0
0
0
2,357
0
0
0
2,357
0
0
0
2,357
0
0
0
2,357
0
0
0
2,357
0
0
0
2,631
0
0
0
3,023
0
0
0
3,228
235,000
235,000
235,000
235,000
235,000
235,000
235,000
235,000
237,357
237,357
237,357
237,357
237,357
237,631
238,023
238,228
26
247,298
(246,557)
26
247,298
(253,338)
26
247,298
(260,118)
26
247,298
(266,898)
26
247,298
(273,679)
26
253,690
(311,152)
26
260,082
(351,390)
26
266,474
(394,101)
766
17,563
18,329
255,686
(6,014)
17,563
11,549
248,906
(12,794)
17,563
4,768
242,126
(19,575)
17,563
(2,012)
235,345
(26,355)
17,563
(8,792)
228,565
(57,437)
20,620
(36,817)
200,814
(91,283)
24,746
(66,537)
171,486
(127,602)
29,709
(97,892)
140,336
196,210
166,491
135,135
319,080
67,724
67,724
67,724
67,724
67,724
0.00x
0 days
0.00x
0 days
0.00x
0 days
0.00x
0 days
0.00x
0 days
0.00x
0 days
0.00x
0 days
0.00x
0 days
0 days
0 days
0 days
0 days
0 days
0 days
0 days
0 days
Fiscal Years:
2016
2017
36,748
1,973
0
0
0
1,973
0
0
64,867
103,588
64,867
66,840
0
0
0
0
3,228
3,228
235,000
235,000
238,228
238,228
26
266,474
(430,849)
26
266,474
(467,597)
(164,350)
29,709
(134,640)
103,588
(201,097)
29,709
(171,388)
66,840
98,387
61,639
0.00x
0 days
0.00x
0 days
(plug to Balance)
0 days
0 days
Fiscal Years:
2010
2008
2009
(37,993)
0
668
(88,986)
0
1,544
(31,639)
0
2,063
2,302
0
55,667
0
(11,870)
0
0
0
0
2,159
0
0
0
6,223
0
0
0
8,066
0
(836)
(30,452)
0
(2,362)
(37,585)
0
(634)
(19,396)
(35,023)
2011
(29,506)
0
2,678
0
0
148
(1,442)
(2,379)
0
(2,698)
(927)
0
0
(3,645)
(479)
0
0
(1,500)
(92,687)
(2,550)
(6,014)
(1,426)
858
(91,166)
(127,710)
556,954
552
0
0
0
0
0
0
(33,002)
429,244
(43,598)
396,242
(20,823)
352,644
429,244
668
396,242
2,212
352,644
4,275
331,821
5,045
2012
Nov30
Quarters, FY2013
Feb28
May31
(30,272)
0
2,906
(10,117)
0
2,750
(10,117)
0
2,750
(10,117)
0
2,750
Aug31
(10,117)
0
2,750
2013
Fiscal Years:
2015
2014
(35,519)
0
2,750
(37,143)
0
2,500
(37,888)
0
2,000
2016
(37,888)
0
2,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
7,606
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
3,427
0
0
0
3,281
0
0
0
3,433
0
0
0
0
0
273
(29,069)
0
392
(30,970)
0
205
(32,250)
0
(421)
(20,182)
0
(100)
0
0
(1,500)
0
0
(7,367)
0
0
(7,367)
0
0
(7,367)
0
0
(7,367)
0
0
0
(1,500)
0
0
0
(1,000)
0
0
0
(1,000)
(1,500)
(1,000)
(1,000)
0
0
(35,888)
(1,600)
0
(71,750)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(71,750)
(93,532)
(7,367)
(7,367)
(7,367)
(7,367) (30,569)
331,821 238,289 230,922 223,554 216,187 208,820
(31,970)
178,252
(33,250)
146,281
(35,888)
113,031
238,289
8,141
230,922
8,728
223,554
9,315
216,187
9,902
208,820
10,488
178,252
(50,991)
146,281
(45,068)
113,031
(39,535)
77,143
(40,395)
2017
(37,888)
0
2,000
0
0
0
0
0
0
0
0
(35,888)
0
0
(35,888)
77,143
41,255
(41,255)