Leveraged Buyout (LBO) Model

Input Values
*Enter values in yellow cells.
Estimated Cost of Deal:
Curent Stock Price
Offer Premium
Offer Price Per Share
No. of Shares outstanding
Equity Purchase Price

$6.00 $ amt
10.00% %
6.60 $ amt
100,000 nos.
$660,000 $ amt

Existing Debt Retired

Assumed Debt
Expensed Transaction Costs
Capitalized Financing Costs
Cash Infusion

$185,000
$65,000
$2,500
$10,888
$27,500

Total Funds Requirement

$950,888 $ amt

Sources of Funds:
Excess Cash
Debt:
Assumed Debt
Bank Revolver
Term Loan "A"
Term Loan "B"
Senior Notes
Subordinated Notes
Mezzanine Debt
Seller Notes
Preferred:
Preferred Stock
Equity:
Common - Sponsor Equity
Management Equity
New Equity
Total

Goodwill / Bargain Purchase:

Equity Purchase Price
Add:
Existing Goodwill
Less:
Net Assets (Book Value)
Fixed Assets (PP&E) Write-up
Identifiable Tangibles Write-up
Deferred Tax Liability - existing
DTL Created on Assets Write-up
Goodwill/(Gain from Bargain Purchase)

Debt Assumptions:
Assumed Debt
Maturity Year
Annual Repayment
Coupon Rate
Average Interest
Optional Prepayment

$ amt
$ amt
$ amt
$ amt
$ amt

Bank Revolver
Coupon Rate
Revolver limit
Undrawn Commitment Fee

$5,000 $ amt
Fees
$65,000
$200,888
$80,000
$55,000
$65,000
$40,000
$70,000
$25,000

Term Loan "A"

Term Years
Annual Repayment
Coupon Rate
Average Interest
Optional Prepayment

$ amt
$ amt
$ amt
$ amt
$ amt
$ amt
$ amt
$ amt

0.75%
1.50%
1.75%
2.00%
2.50%
2.75%
0.00%

Term Loan "B"

Term Years
Annual Repayment
Bullet Year Repayment
Coupon Rate
Average Interest
Optional Prepayment

$60,000 $ amt

2.00%

Senior Notes
Maturity Year
Coupon Rate
Average Interest
Optional Prepayment

$220,000
$40,000
$25,000
$950,888

$ amt
$ amt
$ amt
$ amt

$20,000 $ amt

Subordinated Notes
Maturity Year
Coupon Rate
Average Interest
Years PIK
Optional Prepayment

$464,749 $ amt
$2,450 $ amt
$1,200 $ amt
$1,400 $ amt
($1,278) $ amt
$211,479 $ amt

Mezzanine Debt
Maturity Year
Coupon Rate
Average Interest
Years PIK
Optional Prepayment

$660,000 $ amt

Seller Notes
Term Years

Annual Repayment
Coupon Rate
Average Interest
Years PIK
Optional Prepayment
Preferred Stock
Preferred Stock Dividend
Years PIK
Pref Stock Retired Year

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9 select no.
11.11% % of FV
4.25% % annual
1 1=Yes 0=No
1 1=Yes 0=No

4.75% % annual
$600,000 $ amt
1.00% % annual

8 select no.
12.50% % of FV
5.50% % annual
1 1=Yes 0=No
1 1=Yes 0=No

11 select no.
4.00% % of FV
60.00% % of FV
5.25% % annual
1 1=Yes 0=No
1 1=Yes 0=No

9 select no.
4.25% % annual
1 1=Yes 0=No
1 1=Yes 0=No

12 select no.
4.50% % annual
0 1=Yes 0=No
5 enter no.
1 1=Yes 0=No

14 select no.
4.50% % annual
0 1=Yes 0=No
5 enter no.
1 1=Yes 0=No

7 select no.

Income/BS Assumptions:
Income Statement:
Sales Year 1
Sales - Annual Increase
Cost of goods sold
Cost of goods sold - Annual Increase
SG&A expenses
SG&A expenses - Annual Increase
Other expenses
Other expenses - Annual Increase

$1,100,000 $ amt
10.00% %
45.00% % of revenue
0.25% %
14.00% % of revenue
0.50% %
12.00% % of revenue
0.15% %

Balance Sheet:
Accounts receivable
Accounts receivable - Annual Increase
Inventories
Inventories - Annual Increase
Prepaids
Prepaids - Annual Increase
Other current assets
Other current assets - Annual Increase
Other long-term assets
Other long-term assets - Annual Increase

18.00% % of revenue
5.00% %
20.00% % of COGS
4.00% %
4.50% % of revenue
2.00% %
12.00% % of revenue
2.50% %
4.00% % of revenue
0.50% %

Accounts payable
Accounts payable - Annual Increase
Accrued expenses
Accrued expenses - Annual Increase
Other current liabilities
Other current liabilities - Annual Increase
Capex
Capex Start Year
Capex Interval

15.00% % of COGS plus inventory increase

2.00% %
6.00% % of revenue
1.50% %
8.00% % of revenue
1.00% %
10.00% % of revenue
1 in years
1 in years

Other Assumptions:
Cash Minimum
On / Off
Tax Rate
Year 1

DCF Assumptions:
Discount Rate (WACC)
Discount Rate Range
EBITDA Terminal Value Multiple
EBITDA Multiple Range
Perpetuity Growth Rate
Perpetuity Growth Range
Net Debt

$50,000 $ amt
1 1=On. 0=Off.
35.00% %
2010 year

7.00% %
1.0% %
6.0x x
2.0x x
3.00% %
0.5% %
$583,388 $ amt

14.29% % of FV
5.25% % annual
1 1=Yes 0=No
5 enter no.
1 1=Yes 0=No

7.00% % annual
5 enter no.
select no.

Financing
Costs

4,500
1,200
963
1,300
1,000
1,925
0
10,888
1,200
12,088

Annual
Amortization

450
150
88
144
83
138
0
1,053

Period (Yrs)
10

Income Statements
Year
Year No.

2010
1

2011
2

Net Sales

1,100,000

1,210,000

Cost of goods sold

495,000

Gross Margin

2013
4

2014
5

1,331,000

1,464,100

1,610,510

545,861

601,948

663,799

732,004

605,000

664,139

729,052

800,301

878,506

Operating Expenses
SG&A expenses
Other expenses

286,000
154,000
132,000

315,665
170,247
145,418

348,408
188,208
160,200

384,548
208,064
176,484

424,438
230,015
194,423

EBITDA

319,000

348,474

380,644

415,753

454,068

D&A

72,924

85,024

93,898

104,355

117,776

EBIT

246,076

263,450

286,746

311,398

336,292

Interest Expense
Existing Debt
Bank Revolver
Term Loan "A"
Term Loan "B"
Senior Notes
Subordinated Notes
Mezzanine Debt
Seller Notes

#VALUE!
#VALUE!
13,533
#VALUE!
#VALUE!
#VALUE!
1,800
3,150
#VALUE!

#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!

#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!

#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!

#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!

Other Expenses (Income)

Amortization of Capitalized
Financing Costs
(Gain) Loss on Asset Sales

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!
(1,250)

#VALUE!
(1,350)

#VALUE!
(1,450)

#VALUE!
(1,550)

#VALUE!
(1,650)

Net Income before Taxes

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

Income Tax Expense (Benefit)

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

Net Income

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

6,700
4,200
2,500

7,194
4,494
2,700

7,659
4,809
2,850

8,245
5,145
3,100

8,955
5,505
3,450

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

Dividend
Preferred Stock Dividend
Common Stock Dividend
Net Income to Common Shareholders

2012
3

2015
6

2016
7

2017
8

2018
9

2019
10

1,771,561

1,948,717

2,143,589

2,357,948

2,593,742

807,217

890,159

981,623

1,082,485

1,193,710

964,344

1,058,558

1,161,966

1,275,463

1,400,033

468,468
254,281
214,187

517,067
281,108
235,959

570,709
310,765
259,944

629,918
343,551
286,367

695,271
379,795
315,476

495,876

541,492

591,257

645,545

704,761

128,849

101,532

115,822

128,047

149,661

367,027

439,960

475,435

517,499

555,100

#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!

#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!

#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!

#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!

#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!
(1,750)

#VALUE!
(1,850)

#VALUE!
(1,950)

#VALUE!
(2,050)

#VALUE!
(2,150)

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

9,391
5,891
3,500

9,591
5,891
3,700

9,891
5,891
4,000

9,991
5,891
4,100

10,291
5,891
4,400

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

Balance Sheets
Year
Year No.

Pre-Acq

Adj

Post-Acq
0

2010
1

2011
2

2012
3

ASSETS
Current Assets:
Cash in bank
Accounts receivable
Inventories
Prepaids
Other current assets
Total Current Assets

55,000
85,000
95,999
22,000
45,000

22,500

302,999

77,500
85,000
95,999
22,000
45,000

#VALUE!
198,000
99,000
49,500
132,000

#VALUE!
228,690
113,539
55,539
148,830

#VALUE!
264,137
130,213
62,315
167,806

325,499

#VALUE!

#VALUE!

#VALUE!

Non-Current Assets:
Goodwill
Intangible Assets
Capitalized Financing Costs
Other Long-Term Assets
PP&E:
Gross PP&E
Capex
Depreciation (Current)
Accumulated Depreciation
Net PP&E

20,000
950
0
15,000

191,479
1,200
10,888

211,479
2,150
10,888
15,000

211,479
1,971
#VALUE!
44,000

211,479
1,792
#VALUE!
48,642

211,479
1,613
#VALUE!
53,774

500,000
0
0
25,000
475,000

2,450

502,450
0
0
25,000
477,450

502,450
110,000
72,745
97,745
514,705

612,450
121,000
84,845
182,590
550,860

733,450
133,100
93,718
276,308
590,242

Total Non-Current Assets

510,950

716,966

#VALUE!

#VALUE!

#VALUE!

Total Assets

813,949

1,042,465

#VALUE!

#VALUE!

#VALUE!

228,516

LIABILITIES & EQUITY

Current Liabilities:
Accounts payable
Accrued expenses
Other current liabilities

51,800
24,000
22,000

51,800
24,000
22,000

74,700
66,000
88,000

85,741
73,689
97,768

96,542
82,274
108,620

Total Current Liabilities

97,800

97,800

228,700

257,198

287,436

Deferred Tax Liability

Long-Term Debt:
Existing Debt
Bank Revolver
Term Loan "A"
Term Loan "B"
Senior Notes
Subordinated Notes
Mezzanine Debt
Seller Notes

1,400

(123)

1,278

#VALUE!

#VALUE!

#VALUE!

250,000
0
0
0
0
0
0
0

(185,000)
200,888
80,000
55,000
65,000
40,000
70,000
25,000

65,000
200,888
80,000
55,000
65,000
40,000
70,000
25,000

#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!

#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!

Total Long Term Debt

250,000

600,888

#VALUE!

#VALUE!

#VALUE!

Total Long-Term Liabilities

251,400

602,165

#VALUE!

#VALUE!

#VALUE!

Total Liabilities

349,200

699,965

#VALUE!

#VALUE!

#VALUE!

Shareholder's Equity:
Preferred Stock
Common Equity
Retained Earnings

0
440,000
24,749

60,000
285,000
(2,500)

64,200
285,000
#VALUE!

68,694
285,000
#VALUE!

73,503
285,000
#VALUE!

Total Shareholder's Equity

464,749

342,500

#VALUE!

#VALUE!

#VALUE!

Total Liabilities & Equity

813,949

228,516

1,042,465

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

Balance Sheet Check

60,000
(155,000)
(27,249)

2013
4

2014
5

2015
6

2016
7

2017
8

2018
9

2019
10

#VALUE!
305,078
149,337
69,917
189,201

#VALUE!
352,365
171,268
78,447
213,324

#VALUE!
406,982
196,421
88,018
240,523

#VALUE!
470,064
225,267
98,756
271,190

#VALUE!
542,924
258,350
110,804
305,766

#VALUE!
627,077
296,291
124,322
344,752

#VALUE!
724,274
339,804
139,489
388,707

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

211,479
1,433
#VALUE!
59,447

211,479
1,254
#VALUE!
65,719

211,479
1,075
#VALUE!
72,652

211,479
896
#VALUE!
80,317

211,479
717
#VALUE!
88,790

211,479
538
#VALUE!
98,157

211,479
358
#VALUE!
108,513

866,550
146,410
104,176
380,485
632,475

1,012,960
161,051
117,597
498,082
675,929

1,174,011
177,156
128,669
626,751
724,416

1,351,167
194,872
101,352
728,103
817,935

1,546,039
214,359
115,643
843,747
916,651

1,760,398
235,795
127,868
971,614
1,024,578

1,996,192
259,374
149,482
1,121,096
1,134,470

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

108,708
91,859
120,677

122,413
102,560
134,072

137,851
114,508
148,954

155,242
127,849
165,488

174,837
142,743
183,857

196,914
159,373
204,266

221,789
177,940
226,939

321,244

359,045

401,313

448,579

501,437

560,552

626,668

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!

#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!

#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!

#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!

#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!

#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!

#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

78,648
285,000
#VALUE!

84,153
285,000
#VALUE!

84,153
285,000
#VALUE!

84,153
285,000
#VALUE!

84,153
285,000
#VALUE!

84,153
285,000
#VALUE!

84,153
285,000
#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

Cash Flows
Year
Year No.

2010
1

2011
2

2012
3

2013
4

Cash flows from operating activities

Net Income to Common Shareholders

#VALUE!

#VALUE!

#VALUE!

#VALUE!

Non-cash adjustments:
Depreciation and amortization
Amortization of Capitalized Financing Costs
Increase (Decrease) in Deferred Tax Liability
Accrued Interest Subordinated Notes
Accrued Interest Mezzanine Debt
Accrued Interest Seller Notes
Accrued Interest Preferred Stock

72,924
#VALUE!
#VALUE!
1,800
3,150
#VALUE!
4,200

85,024
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!
4,494

93,898
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!
4,809

104,355
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!
5,145

Changes in operating assets and liabilities:

(Increase) decrease in accounts receivable
(Increase) decrease in inventories
(Increase) decrease in prepaids & other assets
Increase (decrease) in accounts payable
Increase (decrease) in accrued exp & other liabilities

(113,000)
(3,001)
(114,500)
22,900
108,000

(30,690)
(14,539)
(22,869)
11,041
17,457

(35,447)
(16,674)
(25,752)
10,801
19,437

(40,941)
(19,123)
(28,998)
12,166
21,642

Net cash provided by (used in) operating activities

#VALUE!

#VALUE!

#VALUE!

#VALUE!

Cash flows from investing activities

Purchase of property & equipment
(Increase) decrease in other long-term assets

(110,000)
(29,000)

(121,000)
(4,642)

(133,100)
(5,132)

(146,410)
(5,673)

Net cash provided by (used in) investing activities

(139,000)

(125,642)

(138,232)

(152,083)

Cash flows from financing activities

Increase (decrease) in Existing Debt
Increase (decrease) in Term Loan "A"
Increase (decrease) in Term Loan "B"
Increase (decrease) in Senior Notes
Increase (decrease) in Subordinated Notes
Increase (decrease) in Mezzanine Debt
Increase (decrease) in Seller Notes
Increase (decrease) in Preferred Stock

#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
0

#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
0

#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!
0

#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!
0

Net cash provided by (used in) financing activities

#VALUE!

#VALUE!

#VALUE!

#VALUE!

Net increase (decrease) in cash

#VALUE!

#VALUE!

#VALUE!

#VALUE!

77,500

#VALUE!

#VALUE!

#VALUE!

Cash available for Bank Revolver

#VALUE!

#VALUE!

#VALUE!

#VALUE!

Added (retired) Bank Revolver

#VALUE!

#VALUE!

#VALUE!

#VALUE!

Cash at beginning of year

Cash at end of year

#VALUE!

#VALUE!

#VALUE!

#VALUE!

246,076
0
246,076
86,127
159,949
72,924
110,000
99,601
#VALUE!
#VALUE!

263,450
0
263,450
92,207
171,242
85,024
121,000
39,600
#VALUE!
#VALUE!

286,746
0
286,746
100,361
186,385
93,898
133,100
47,635
#VALUE!
#VALUE!

311,398
0
311,398
108,989
202,409
104,355
146,410
55,254
#VALUE!
#VALUE!

77,500
#VALUE!
(139,000)
#VALUE!
50,000
#VALUE!

#VALUE!
#VALUE!
(125,642)
#VALUE!
50,000
#VALUE!

#VALUE!
#VALUE!
(138,232)
#VALUE!
50,000
#VALUE!

#VALUE!
#VALUE!
(152,083)
#VALUE!
50,000
#VALUE!

7,222
10,000
2,200
0
0
0
3,571
0
22,994

#VALUE!
#VALUE!
#VALUE!
0
0
0
#VALUE!
0
#VALUE!

#VALUE!
#VALUE!
#VALUE!
0
0
0
#DIV/0!
0
#VALUE!

#VALUE!
#VALUE!
#VALUE!
0
0
0
#DIV/0!
0
#VALUE!

Cash Balance
Incremental Revolver
Cash Available for Optional Repayment

#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!

Optional Repayment
Existing Debt
Term Loan "A"
Term Loan "B"
Senior Notes
Subordinated Notes
Mezzanine Debt
Seller Notes

#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!

#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!

Free Cash Flows

EBIT
Add: Amortization of non-deductible goodwill & intangibles
EBIT (Adj)
Less: Tax on EBIT (Adj)
Unlevered Net Income
Plus: D&A & other non-cash charges affecting EBIT
Less: Capital Expenditures
Less: Increase in Net (non-cash) Working Capital
Less: (Increase) decrease in Deferred Tax

Unlevered Free Cash Flows (UFCF)

Debt Repayment
Cash Available for Debt Repayment
Cash at beginning of year
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Sub-total
Minimum Cash Balance
Cash Available for Debt Repayment
Mandatory Repayment
Existing Debt
Term Loan "A"
Term Loan "B"
Senior Notes
Subordinated Notes
Mezzanine Debt
Seller Notes
Preferred Stock
Sub-total

Bank Revolver
Sub-total

#VALUE!
#VALUE!

#VALUE!
#VALUE!

#VALUE!
#VALUE!

#VALUE!
#VALUE!

Cash at end of year

#VALUE!

#VALUE!

#VALUE!

#VALUE!

Cash Flow Check

#VALUE!

#VALUE!

#VALUE!

#VALUE!

2014
5

2015
6

2016
7

2017
8

2018
9

2019
10

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

117,776
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!
5,505

128,849
#VALUE!
#VALUE!
0
0
0
0

101,532
#VALUE!
#VALUE!
0
0
0
0

115,822
#VALUE!
#VALUE!
0
0
0
0

128,047
#VALUE!
#VALUE!
0
0
0
0

149,661
#VALUE!
#VALUE!
0
0
0
0

(47,287)
(21,932)
(32,653)
13,704
24,097

(54,617)
(25,152)
(36,769)
15,438
26,830

(63,082)
(28,846)
(41,405)
17,392
29,874

(72,860)
(33,083)
(46,625)
19,594
33,264

(84,153)
(37,941)
(52,503)
22,077
37,038

(97,197)
(43,513)
(59,123)
24,876
41,240

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

(161,051)
(6,272)

(177,156)
(6,933)

(194,872)
(7,665)

(214,359)
(8,473)

(235,795)
(9,367)

(259,374)
(10,356)

(167,323)

(184,089)

(202,536)

(222,832)

(245,162)

(269,730)

#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!
0

#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!
0

#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!
0

#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
0
0

#VALUE!
0
#VALUE!
#VALUE!
#VALUE!
#VALUE!
0
0

0
0
#VALUE!
0
#VALUE!
#VALUE!
0
0

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

336,292
0
336,292
117,702
218,590
117,776
161,051
64,071
#VALUE!
#VALUE!

367,027
0
367,027
128,460
238,568
128,849
177,156
74,270
#VALUE!
#VALUE!

439,960
0
439,960
153,986
285,974
101,532
194,872
86,067
#VALUE!
#VALUE!

475,435
0
475,435
166,402
309,033
115,822
214,359
99,710
#VALUE!
#VALUE!

517,499
0
517,499
181,125
336,374
128,047
235,795
115,483
#VALUE!
#VALUE!

555,100
0
555,100
194,285
360,815
149,661
259,374
133,717
#VALUE!
#VALUE!

#VALUE!
#VALUE!
(167,323)
#VALUE!
50,000
#VALUE!

#VALUE!
#VALUE!
(184,089)
#VALUE!
50,000
#VALUE!

#VALUE!
#VALUE!
(202,536)
#VALUE!
50,000
#VALUE!

#VALUE!
#VALUE!
(222,832)
#VALUE!
50,000
#VALUE!

#VALUE!
#VALUE!
(245,162)
#VALUE!
50,000
#VALUE!

#VALUE!
#VALUE!
(269,730)
#VALUE!
50,000
#VALUE!

#VALUE!
#VALUE!
#VALUE!
0
0
0
#DIV/0!
0
#VALUE!

#VALUE!
#VALUE!
#VALUE!
0
0
0
#DIV/0!
0
#VALUE!

#VALUE!
#VALUE!
#VALUE!
0
0
0
#DIV/0!
0
#VALUE!

#VALUE!
#VALUE!
#VALUE!
0
0
0
0
0
#VALUE!

#VALUE!
0
#VALUE!
#VALUE!
0
0
0
0
#VALUE!

0
0
#VALUE!
0
0
0
0
0
#VALUE!

#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!

#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!

#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!

#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
0

#VALUE!
0
#VALUE!
#VALUE!
#VALUE!
#VALUE!
0

0
0
#VALUE!
0
#VALUE!
#VALUE!
0

#VALUE!
#VALUE!

#VALUE!
#VALUE!

#VALUE!
#VALUE!

#VALUE!
#VALUE!

#VALUE!
#VALUE!

#VALUE!
#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

Depreciation & Amortization

Book Depreciation & Amortization:

Gross PP&E
PP&E Write-up
Fair Value PP&E
Accumulated Depreciation
Net PP&E

Year
Year No.

2010
1

Existing PP&E (incl Write-up)

Beginning Amt Remaining Life
Class 1
$90,000
12
Class 2
85,000
10
Class 3
60,000
8
Class 4
242,450
6
477,450

Salvage
$900
800
600
600
2,900

2011
2

$500,000
$2,450
$502,450
25,000
$477,450

2012
3

7,425
8,420
7,425
40,308
63,578

7,425
8,420
7,425
40,308
63,578

7,425
8,420
7,425
40,308
63,578

9,167
0
0
0
0
0
0
0
0
0
9,167

9,167
12,100
0
0
0
0
0
0
0
0
21,267

9,167
12,100
8,873
0
0
0
0
0
0
0
30,140

Computed Depreciation
Manual Depreciation

72,745
40,000

84,845
40,000

93,718
40,000

Total Book Depreciation

72,745

84,845

93,718

179
0

179
0

179
0

#VALUE!
450
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!

#VALUE!
450
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!

#VALUE!
450
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!

Capex
Year
1
2
3
4
5
6
7
8
9
10

Capex
$110,000
121,000
133,100
146,410
161,051
177,156
194,872
214,359
235,795
259,374
1,753,117

Useful Life
12
10
15
14
12
16
15
15
12
12

Amortization of Intangibles (incl Write-up)

Impairment of Goodwill
Amortization of Capitalized Financing Costs
Bank Revolver
Term Loan "A"
Term Loan "B"
Senior Notes
Subordinated Notes
Mezzanine Debt
Seller Notes

Salvage

Period (Yrs)
12
Total Cost ($)
10,888

Tax Depreciation & Amortization:

Existing PP&E (Tax)

Beginning Amt Remaining Life
Class 1
$130,000
12
Class 2
105,000
10
Class 3
95,000
8
Class 4
85,000
6
415,000

Tax PP&E

Salvage
$900
800
600
600
2,900

$415,000

10,758
10,420
11,800
14,067
47,045

10,758
10,420
11,800
14,067
47,045

10,758
10,420
11,800
14,067
47,045

9,167
0
0
0
0
0
0
0
0
0
9,167

9,167
15,125
0
0
0
0
0
0
0
0
24,292

9,167
15,125
8,873
0
0
0
0
0
0
0
33,165

56,212

71,337

80,210

143
14,099

143
14,099

143
14,099

Capex
Year
1
2
3
4
5
6
7
8
9
10

Capex
$110,000
121,000
133,100
146,410
161,051
177,156
194,872
214,359
235,795
259,374
1,753,117

Useful Life
12
8
15
9
4
16
15
2
12
12

Salvage

Total Tax Depreciation

Amortization of Intangibles (incl Write-up)

Amortization of Goodwill

Period (Yrs)
15
15

Depreciation Method
0=SLN 1=Sum of Years

Goodwill & Intangibles Amortization

0=Not Deductible 1=Tax Deductible
1
Tax Deductible

Manual or Computed Depreciation

1
0=Manual 1=Computed

2013
4

2014
5

2015
6

2016
7

2017
8

2018
9

2019
10

7,425
8,420
7,425
40,308
63,578

7,425
8,420
7,425
40,308
63,578

7,425
8,420
7,425
40,308
63,578

7,425
8,420
7,425
0
23,270

7,425
8,420
7,425
0
23,270

7,425
8,420
0
0
15,845

7,425
8,420
0
0
15,845

9,167
12,100
8,873
10,458
0
0
0
0
0
0
40,598

9,167
12,100
8,873
10,458
13,421
0
0
0
0
0
54,019

9,167
12,100
8,873
10,458
13,421
11,072
0
0
0
0
65,091

9,167
12,100
8,873
10,458
13,421
11,072
12,991
0
0
0
78,082

9,167
12,100
8,873
10,458
13,421
11,072
12,991
14,291
0
0
92,373

9,167
12,100
8,873
10,458
13,421
11,072
12,991
14,291
19,650
0
112,023

9,167
12,100
8,873
10,458
13,421
11,072
12,991
14,291
19,650
21,615
133,637

104,176
40,000

117,597
40,000

128,669
40,000

101,352
40,000

115,643
40,000

127,868
40,000

149,482
40,000

104,176

117,597

128,669

101,352

115,643

127,868

149,482

179
0

179
0

179
0

179
0

179
0

179
0

179
0

#VALUE!
450
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!

#VALUE!
450
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!

#VALUE!
450
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!

#VALUE!
450
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!

#VALUE!
450
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!

#VALUE!
450
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!

#VALUE!
450
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#DIV/0!

Depreciation Method
0=SLN 1=Sum of Years

10,758
10,420
11,800
14,067
47,045

10,758
10,420
11,800
14,067
47,045

10,758
10,420
11,800
14,067
47,045

10,758
10,420
11,800
0
32,978

10,758
10,420
11,800
0
32,978

10,758
10,420
0
0
21,178

10,758
10,420
0
0
21,178

9,167
15,125
8,873
16,268
0
0
0
0
0
0
49,433

9,167
15,125
8,873
16,268
40,263
0
0
0
0
0
89,696

9,167
15,125
8,873
16,268
40,263
11,072
0
0
0
0
100,768

9,167
15,125
8,873
16,268
40,263
11,072
12,991
0
0
0
113,759

9,167
15,125
8,873
16,268
40,263
11,072
12,991
107,179
0
0
220,939

9,167
15,125
8,873
16,268
0
11,072
12,991
107,179
19,650
0
200,325

9,167
0
8,873
16,268
0
11,072
12,991
0
19,650
21,615
99,636

96,478

136,741

147,813

146,738

253,917

221,504

120,814

143
14,099

143
14,099

143
14,099

143
14,099

143
14,099

143
14,099

143
14,099

Income Tax Calculation

Year
Year No.

Net Income before Tax

2010
1

2011
2

2012
3

2013
4

2014
5

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

Add: Book Depreciation

Add: Book (Gain) Loss on Assets Sale
Add: Book Impairment of Goodwill
Add: Book Amortization of Intangibles
Add: Non-Deductible Expenses

72,745
1,250
0
179
0

84,845
1,350
0
179
0

93,718
1,450
0
179
0

104,176
1,550
0
179
0

117,597
1,650
0
179
0

Less: Tax Depreciation

Less: Tax (Gain) Loss on Assets Sale
Less: Tax Amortization of Goodwill
Less: Tax Amortization of Intangibles

56,212
1,350
14,099
143

71,337
1,500
14,099
143

80,210
1,600
14,099
143

96,478
1,700
14,099
143

136,741
1,750
14,099
143

Pre-NOL Taxable Income

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

Less: NOLs Used

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

Post-NOL Taxable Income

Cash Taxes Payable

#VALUE!
#VALUE!

#VALUE!
#VALUE!

#VALUE!
#VALUE!

#VALUE!
#VALUE!

#VALUE!
#VALUE!

Total Book Tax

Increase (Decrease) in Deferred
Tax Liability

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

Beginning NOL Balance

Current Year NOL
NOLs Used
Ending NOL Balance

15,500
#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!
#VALUE!

Estimated Sale Proceeds

4,000

4,500

5,000

5,500

6,000

Book Basis of Assets

Tax Basis of Assets

2,750
2,650

3,150
3,000

3,550
3,400

3,950
3,800

4,350
4,250

Book Gain (Loss) on Sale

Tax Gain (Loss) on Sale

1,250
1,350

1,350
1,500

1,450
1,600

1,550
1,700

1,650
1,750

Allocation to Balance Sheet:

PP&E:

1,500

1,700

1,900

2,100

2,300

Projected Asset Sales:

Other Long-Term Assets

1,250

1,450

1,650

1,850

2,050

2015
6

2016
7

2017
8

2018
9

2019
10

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

128,669
1,750
0
179
0

101,352
1,850
0
179
0

115,643
1,950
0
179
0

127,868
2,050
0
179
0

149,482
2,150
0
179
0

147,813
1,900
14,099
143

146,738
2,000
14,099
143

253,917
2,200
14,099
143

221,504
2,300
14,099
143

120,814
2,500
14,099
143

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!
#VALUE!

#VALUE!
#VALUE!

#VALUE!
#VALUE!

#VALUE!
#VALUE!

#VALUE!
#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!
#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!
#VALUE!

6,500

7,000

7,500

8,000

8,500

4,750
4,600

5,150
5,000

5,550
5,300

5,950
5,700

6,350
6,000

1,750
1,900

1,850
2,000

1,950
2,200

2,050
2,300

2,150
2,500

2,500

2,700

2,900

3,100

3,300

2,250

2,450

2,650

2,850

3,050

Weighted Average Cost of Capital

Risk Free Rate (Treasury Bill Rate)
Market Risk Premium
Levered Beta

Estimated Cost of Debt

Existing Debt
Bank Revolver
Term Loan "A"
Term Loan "B"
Senior Notes
Subordinated Notes
Mezzanine Debt
Seller Notes
Total Debt

5.00%
4.50%
1.20

Amount
65,000
200,888
80,000
55,000
65,000
40,000
70,000
25,000

Int. Rate Wtd. Rate

4.25%
0.46%
4.75%
1.59%
5.50%
0.73%
5.25%
0.48%
4.25%
0.46%
4.50%
0.30%
4.50%
0.52%
5.25%
0.22%

600,888
Post-Tax

Estimated Cost of Preferred Stock

Preferred Stock

60,000

7.00%

Estimated Cost of Equity (CAPM)

Total Book Equity

282,500

16.03%

Beta Calculation
Levered Beta

1.20

Pre-Acquisition:
Debt
Equity
Preferred Stock
Debt/Equity Ratio
Preferred Stock/Equity Ratio

$250,000
$600,000
$0
0.42
0.00

Post-Acquisition:
Debt
Equity
Preferred Stock
Debt/Equity Ratio
Preferred Stock/Equity Ratio

$600,888
$282,500
$60,000
2.13
0.21

Tax Rate

35.00%

Unlevered Beta

0.94

Relevered Beta

2.45

WACC
0 = Manual 1 = Computed
1
Computed

4.76%
3.10%

Computed WACC
Cost of Debt (Post-Tax)
Cost of Preferred Stock
Cost of Equity
WACC

WACC
nual 1 = Computed
Computed

Manual
WACC
8.50%

Computed WACC
Proportion
Rate
Wtd. Cost
63.69%
3.10%
1.97%
6.36%
7.00%
0.45%
29.95%
16.03%
4.80%
7.22%

Discounted Cash Flow Analysis

NPV of Free Cash Flow
NPV of FCFF @ 6.00%
NPV of FCFF @ 7.00%
NPV of FCFF @ 8.00%

#VALUE!
#VALUE!
#VALUE!

FV of Terminal Value (EBITDA)

Terminal Value @ 4.0x
Terminal Value @ 6.0x
Terminal Value @ 8.0x

PV of Terminal Value (E

2,819,044
4,228,567
5,638,089

FV of Terminal Value (Perpetuity)

2.5%
3.0%
Terminal Value @ 6.00%
#VALUE!
#VALUE!
Terminal Value @ 7.00%
#VALUE!
#VALUE!
Terminal Value @ 8.00%
#VALUE!
#VALUE!

Terminal Value @ 6.00%

Terminal Value @ 7.00%
Terminal Value @ 8.00%

PV of Terminal Value (Pe

3.5%
#VALUE!
#VALUE!
#VALUE!

Terminal Value @ 6.00%

Terminal Value @ 7.00%
Terminal Value @ 8.00%

6.0%
7.0%
8.0%

Total Enterprise Value

EBITDA Multiple Method
4.0x
6.0x
8.0x
#VALUE!
#VALUE!
#VALUE!
6.0%
#VALUE!
#VALUE!
#VALUE!
7.0%
#VALUE!
#VALUE!
#VALUE!
8.0%

Perpetuity Growth Method

2.5%
3.0%
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!

6.0%
7.0%
8.0%

Total Equity Value

EBITDA Multiple Method
4.0x
6.0x
8.0x
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!

6.0%
7.0%
8.0%

Perpetuity Growth Method

2.5%
3.0%
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!

6.0%
7.0%
8.0%

Total Equity Value Per Share

EBITDA Multiple Method
4.0x
6.0x
8.0x
#VALUE!
#VALUE!
#VALUE!
6.0%
#VALUE!
#VALUE!
#VALUE!
7.0%
#VALUE!
#VALUE!
#VALUE!
8.0%

Perpetuity Growth Method

2.5%
3.0%
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!

PV of Terminal Value (EBITDA)

4.0x
6.0x
1,574,140
2,361,210
1,433,059
2,149,589
1,305,763
1,958,645

8.0x
3,148,279
2,866,119
2,611,526

PV of Terminal Value (Perpetuity)

2.5%
3.0%
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!

3.5%
#VALUE!
#VALUE!
#VALUE!

ity Growth Method

3.5%
#VALUE!
#VALUE!
#VALUE!

ity Growth Method

3.5%
#VALUE!
#VALUE!
#VALUE!

ity Growth Method

3.5%
#VALUE!
#VALUE!
#VALUE!

Percentage Split of DCF Analysis

Cash Flow % of TEV:

@ 6.00%
@ 7.00%
@ 8.00%
Terminal Value % of TEV:
@ 6.00%
@ 7.00%
@ 8.00%

Cash Flow % of TEV:

@ 6.00%
@ 7.00%
@ 8.00%
Terminal Value % of TEV:
@ 6.00%
@ 7.00%
@ 8.00%

EBITDA Multiple Method

4.0x
6.0x
8.0x
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!

Perpetuity Growth Method

2.5%
3.0%
3.5%
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!

IRR / Returns Calculation

Exit Year

2018

Equity Allocation on Exit

Investment

Common - Sponsor Equity

Management Equity
New Equity
Subordinated Notes
Mezzanine Debt
Preferred Stock
Management Performance Equity
Total

Cash Flows & IRR

Subordinated Notes
Initial Investment
Cash Interest
Repayment
Principal
Participation on Exit
IRR

Mezzanine Debt
Initial Investment
Cash Interest
Repayment
Principal
Participation on Exit
IRR

Preferred Stock
Initial Investment
Cash Dividend
Repayment
Principal
Participation on Exit
IRR

Common - Sponsor Equity

Initial Investment
Cash Dividend
Participation on Exit
IRR

9
Undiluted

% Allocation

Diluted

Allocation

$220,000
40,000
25,000
40,000
70,000
60,000
N/A

77.19%
14.04%
8.77%
N/A
N/A
N/A
N/A

0.00%
0.00%
2.00%
3.00%
5.00%
4.00%
4.00%

63.30%
11.51%
9.19%
3.00%
5.00%
4.00%
4.00%

#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!

455,000

100.00%

18.00%

100.00%

#VALUE!

Post-Acq
0

2010
1

2011
2

2012
3

2013
4

0
#VALUE!
0
0
#VALUE!

#VALUE!
#VALUE!
0
0
#VALUE!

#VALUE!
#VALUE!
0
0
#VALUE!

#VALUE!
#VALUE!
0
0
#VALUE!

0
#VALUE!
0
0
#VALUE!

#VALUE!
#VALUE!
0
0
#VALUE!

#VALUE!
#VALUE!
0
0
#VALUE!

#VALUE!
#VALUE!
0
0
#VALUE!

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

0
0
0
0
0

1,930
0
1,930

2,084
0
2,084

2,200
0
2,200

2,393
0
2,393

(40,000)

#VALUE!

(40,000)

(70,000)

#VALUE!

(70,000)

(60,000)

#VALUE!

(60,000)

(220,000)

#VALUE!

(220,000)

Management Equity
Initial Investment
Cash Dividend
Participation on Exit
IRR

New Equity
Initial Investment
Cash Dividend
Participation on Exit
IRR

(40,000)

#VALUE!

(40,000)

351
0
351

379
0
379

400
0
400

435
0
435

219
0
219

237
0
237

250
0
250

272
0
272

(25,000)

#VALUE!

(25,000)

Allocation of Exit Proceeds

EBITDA Multiple (Exit Year)
EBITDA (Exit Year)
Exit Year Enterprise Value

6.0x
645,545
3,873,273

Less: Debt
Less: Preferred Stock
Add: Excess Cash

#VALUE!
84,153
#VALUE!

Equity Value - Allocable Proceeds

#VALUE!

2014
5

2015
6

2016
7

2017
8

2018
9

2019
10

#VALUE!
#VALUE!
0
0
#VALUE!

#VALUE!
#VALUE!
0
0
#VALUE!

#VALUE!
#VALUE!
0
0
#VALUE!

#VALUE!
#VALUE!
0
0
#VALUE!

#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!

0
0
0
0
0

#VALUE!
#VALUE!
0
0
#VALUE!

#VALUE!
#VALUE!
0
0
#VALUE!

#VALUE!
#VALUE!
0
0
#VALUE!

#VALUE!
#VALUE!
0
0
#VALUE!

#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!

0
0
0
0
0

0
0
0
0
0

5,891
0
0
0
5,891

5,891
0
0
0
5,891

5,891
0
0
0
5,891

5,891
0
84,153
#VALUE!
#VALUE!

0
0
0
0
0

2,663
0
2,663

2,702
0
2,702

2,856
0
2,856

3,088
0
3,088

3,165
#VALUE!
#VALUE!

0
0
0

484
0
484

491
0
491

519
0
519

561
0
561

575
#VALUE!
#VALUE!

0
0
0

303
0
303

307
0
307

325
0
325

351
0
351

360
#VALUE!
#VALUE!

0
0
0

Ratio Analysis
Year
Year No.

2010
1

2011
2

2012
3

2013
4

2014
5

Capital Ratios
Debt Ratio
Total Debt / Book Capitalization
Total Debt / Equity

#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!

Leverage Ratios
Total Debt / EBITDA
Total Debt / (EBITDA - Capex)
Net Debt / EBITDA
Senior Debt / EBITDA

#VALUE!
#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!
#VALUE!

Interest Coverage
EBITDA / Total Interest
EBITDA / Senior Interest
EBITDA / Cash Interest

#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!

(EBITDA - Capex) / Total Interest

(EBITDA - Capex) / Senior Interest
(EBITDA - Capex) / Cash Interest

#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!

EBIT / Total Interest

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!
2.2x

#VALUE!
2.3x

#VALUE!
2.3x

#VALUE!
2.4x

#VALUE!
2.5x

5.1x
7.8x
7.9x
71.9
47.0
46.4

5.1x
5.7x
7.0x
71.1
64.4
52.2

4.9x
5.4x
6.8x
73.9
67.6
53.8

4.7x
5.1x
6.7x
76.9
71.0
54.8

4.6x
4.9x
6.5x
79.9
74.5
55.9

Liquidity Ratios
Current Ratio
Quick (Acid Test) Ratio

#VALUE!
#VALUE!

#VALUE!
#VALUE!

#VALUE!
#VALUE!

#VALUE!
#VALUE!

#VALUE!
#VALUE!

Returns
Return on Equity (ROE)
Return on Assets (ROA)

#VALUE!
#VALUE!

#VALUE!
#VALUE!

#VALUE!
#VALUE!

#VALUE!
#VALUE!

#VALUE!
#VALUE!

Asset Utilization
Total Asset Turnover (Sales)
Fixed Asset Turnover (Sales)

Activity Ratios
Inventory Turnover (COGS)
Accounts Receivable Turnover (Sales)
Accounts Payable Turnover (COGS & Inv)
Inventory Holding Period (Days)
Days Receivable (Sales)
Days Payable (COGS & Inv)

Operating Results
Sales Growth
Gross Margin
EBITDA Margin
EBIT Margin
Pre-Tax Profit Ratio

N/A
55.00%
29.00%
22.37%
#VALUE!

10.00%
54.89%
28.80%
21.77%
#VALUE!

10.00%
54.77%
28.60%
21.54%
#VALUE!

10.00%
54.66%
28.40%
21.27%
#VALUE!

10.00%
54.55%
28.19%
20.88%
#VALUE!

2015
6

2016
7

2017
8

2018
9

2019
10

#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!

#VALUE!
#VALUE!
#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!

#VALUE!
2.5x

#VALUE!
2.5x

#VALUE!
2.5x

#VALUE!
2.4x

#VALUE!
2.4x

4.4x
4.7x
6.4x
83.1
78.2
57.1

4.2x
4.4x
6.3x
86.5
82.1
58.2

4.1x
4.2x
6.1x
89.9
86.2
59.4

3.9x
4.0x
6.0x
93.5
90.6
60.6

3.8x
3.8x
5.9x
97.2
95.1
61.8

#VALUE!
#VALUE!

#VALUE!
#VALUE!

#VALUE!
#VALUE!

#VALUE!
#VALUE!

#VALUE!
#VALUE!

#VALUE!
#VALUE!

#VALUE!
#VALUE!

#VALUE!
#VALUE!

#VALUE!
#VALUE!

#VALUE!
#VALUE!

10.00%
54.43%
27.99%
20.72%
#VALUE!

10.00%
54.32%
27.79%
22.58%
#VALUE!

10.00%
54.21%
27.58%
22.18%
#VALUE!

10.00%
54.09%
27.38%
21.95%
#VALUE!

10.00%
53.98%
27.17%
21.40%
#VALUE!