Business Model

Note: All except the Rollup (black) tabs are protected; please contact scott@Ex
This workbook contains a two-part valuation of a manufacturing "Company" with two operating
The Company-level Rollup includes a Discounted Cash Flow Valuation of the business. The tabs a
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
The "Comparables" tab contains financial information about a "peer-group" of 3 public companie
Comparables
Peer companies 1, 2, & 3
Similar stats for Company
Finally, the Presentation tab contains a brief introduction to the methodology, calculations of the
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
ase contact scott@ExcelModels.com to unlock
ny" with two operating units and an corporate overhead cost center
he business. The tabs are color-coded as follows:

Business Unit #2
Business Drivers w/ assumptions
P&L
Balance Sheet
Overhead Unit
P&L
Balance Sheet
p" of 3 public companies, whose Price-to-Earnings (EV/EBITDA) ratio determines an alternate Valuation:
ogy, calculations of the two Valuations, and summary exhibits

slideshow version:
Copyright 2016, Scott Beber, ExcelModels.c
te Valuation:
Beber, ExcelModels.com
Project: Valuation
by Scott Beber
TABLE OF CONTENTS
Background
Valuation Approaches
Comparison of Methodologies
Discounted Cash Flow Valuation
Selected Approach
Valuation
Weighted Average Cost of Capital
Market Comparables
Discounted Cash Flows
Results & Illustrations
Conclusion
Summary of Findings
Valuation Approaches
Project: Valuation
Four Approachs to measuring Mar
by Scott Beber
Approach
Income
`
Exhibits:
Four methods to calculate Market Value...
Which methodology is most appropriate?......................................................
How to determine a company's NPV....
Two methodologies for Company....
1
2
3
4
Company's WACC.....
Company's Market Comps Valuation
Company's DCF Valuation
5
6
7
Market
Asset
Company is Undervalued by the Market
Composition of Enterprise Values...
Operating Leverage
Operating Performance.
2012 Percent Returns....
Net Working Capital......
8
9
10
11
12
13
Other
Approaches
Approachs to measuring Market Value

Methodology
Formula:
Discounted Cash Flow
Market capitalization
Earnings multiple of
comparable "peer group"
Liquidation value,
Acquisition value
Option pricing models

Economic Value Added
Contingent claim models
Period cash flows

(1+WACC) ^ Period
Company financials,
Management estimates
$ Share Price x
# Shares outstanding
WSJ, Yahoo! Finance
Average of peers' P/E ratios

x Company Earnings
Data Sources:
WSJ, Yahoo! Finance

and Company financials
Market prices of
individual assets
Auctions, Indexes,
Historical transactions
Various
WSJ, Yahoo! Finance

Company financials,
Management estimates
Comparison of Methodologies
Which is most appropriate?
Used Primarily By:
Methodology
Companies with stable

or estimable growth
Public companies
Market capitalization
Privately-held cos.
Individual business units
comparable peer group
Companies in distress
Sum of parts > whole
Liquidation value,
Acquisition value
Companies whose assets

are valued like options
Option models
hodologies
Discounted C
propriate?
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)
Easily to obtain; "quick & dirty"

Easy to relate to
Requires fewer assumptions
Does not capture true intrinsic value

Markets can be inefficient and slow to equalize
Trading can be emotional, momentum-based
In reality, the most commonly-used method

Easily to obtain; "quick & dirty"
Market has final say in what something's worth
Precise comparables rarely exist

Does not account for growth, strategy, change
Easy to manipulate and misuse
Accurate in short term

Easy to relate to
Easy to support with data
Does not account for growth, strategy, change

Whole may be more valuable than sum of parts
May leave money on the table in short sales
Allow for management to quickly assimilate,

react to, and learn from real-time data
Some assets' values derive entirely from their
option-like characteristics (e.g. biotech patent)
Can easily lead to overvaluation when options

argument does not hold up
Bad for long-term options on non-traded assets
3
Discounted Cash Flow Valuation

How to determine a company's Net Present Value
In a DCF valuation, a company's value (V) is deemed to be the present value of all future cash flows (CF)
Cash flows are 'discounted' by the company's Weighted Average Cost of Capital (WACC) each year (t) out they occur
A terminal year (n+1) and a cash flow growth rate (g) are chosen, to represent the company's cash flow in perpetuity
n
V=
CF in period t
(1+WACC) ^ t
CF / (WACC-g)
(1+WACC) ^ n+1
t=0
Factors that affect V:

The higher a company's cost of capital, the lower the present value of a period's cash flows
Given constant cash flows, the further out the period, the less its cash flow contributes to V
The higher the terminal growth rate, the higher perpetuity component will be. However
The termianl growth rate cannot exceed the growth rate of the economy as a whole
Selected Approach
Two methodologies chosen:
Methodology
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
comparable peer group
Provides powerful check on DCF method

Greater accuracy than typical P/E approach
by using different peer groups for each B.U.
Includes market sentiment as component of
end-product Valuation
Market Capitalization
Basis of comparison for both Valuations
Company Weighted Average Cost of Capital

Cost of Equity (using CAPM)
Company Beta
Risk Free Rate
10-year Treasury-Bond
Equity Risk Premium *
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
Company Cost of Equity
Peer groups for each Business Unit

Market cap, debt, cash, and EBITDA of each
company in peer groups
EV/EBITDA multiples of peer groups to apply
to Company's Business Units' EBITDA
Company EBITDA by Business Unit
3.35
2.00%
3.99%
15.37%
Weighted Average Cost of Capital

Market Value of Equity
Value of Debt, 2012
Weighted Avg Cost of Capital (WACC
* Estimates of Equity Risk Premium (ERP) for the United States in 201
Approach
Determine market Over/Under Valuation
ERP
Survey: CFOs
3.07%
Survey: Global Fund Managers
4.08%
Historical - US
4.10%
Average Implied premium
3.99%
Implied premium adj. for T.Bond rate and term
3.50%
f Capital
Company Market Comparables Va
Cost of Debt (from Company financials)

$ million:
Principal Balance
Total Interest Expense
Average annual cost
Company Cost of Debt
2011
324,620
23,382
7.20%
8.19%
2012 2013 (F) 3 yr avg

228,493 235,204 262,772
20,969
20,214
21,521
9.18%
8.59%
8.19%
d Average Cost of Capital
Value of Equity
of Debt, 2012
$ mil
500.0
228.5
728.5
Pct.
69%
31%
100%
d Avg Cost of Capital (WACC)
Cost
15.37%
8.19%
13.12%
13.12%
the United States in 2012: (Aswath Damodaran- http://pages.stern.nyu.edu/~adamodar/)

Source
Campbell and Harvey (2010); Avg. estimate. Median = 2.7%
Merrill Lynch (Jan., 2012)
Geometric avg - Stocks over T.Bonds: 1928-2011
Avg. of implied equity risk premium: 1960-2011
Selected estimate
Using regression of implied premium on T.Bond rate

6
Company Market Comparables Valuation

Public Comparable
Comp1
Comp2
Comp3
sym
COMP1
COMP2
COMP3
Multiple Calculation
Ent Val ($ mil)
EBITDA (ttm)
EV/EBITDA
$462.7
$80.3
5.76
$4,740.0
$608.8
7.79
$122.3
$30.9
3.96
Weighted Avg. Multiple:
7.40
Company Bus. Units

Operations
Biz1
Biz2
Total Operations
Corporate Overhead
Enterprise Value is equal to:

+ Value of Equity
+ Value of Debt
- Cash
hence
Equity Value is equal to:
Enterprise Value - Debt + Cash
Enterprise Value
Debt (3-yr avg)
Cash
Equity Value
Note: Market data from Yahoo! Finance
Market Comp Enterprise Value:

Discounted Cash Flow Valuation:
Company financials:
Yahoo! Finance:
Market Comparables model:
Discounted Cash Flow model:
Company DCF Valuation

By Business Unit
Apply multiple in $ mil
EBITDA
$45,621
$1,429
Ent Val
$337.4
$10.6
$47,050
$348.0
($30,313)
nterprise Value:
h Flow Valuation:
ables model:
h Flow model:
$0.0
$348.0
($15.5)
$262.8
$40.7
Business Unit
WACC
Operations
Biz1
Biz2
Total, Operations
13.1%
13.1%
44.7
3.5
48.2
(25.8)
(6.3)
(32.1)
34.6
2.4
36.9
24.4
0.2
24.6
Corporate Overhead
13.1%
(2.8)
(16.1)
(16.1)
(15.7)
45.4
(48.3)
20.8
8.9
Total, Company
*Forecast of remainder of fiscal year
$125.9
($237.6)
Discounted Cash Flows ($ mil):

Forecasted Fiscal Years:
2012*
2013
2014
2015
Conclusion
Company is Undervalued by the Market
iscal Years:
Terminal Years
Stage 1
Stage 2
2016
2017
27.4
0.3
27.7
8.8
(0.3)
8.5
54.6
(2.0)
52.6
31.1
(1.0)
30.0
199.6
(3.3)
196.3
(16.6)
(14.7)
(86.8)
(43.0)
(211.8)
11.1
(6.2)
(34.2)
(13.0)
($15.5)
Company's Equity Value ($ mil), per:

Market Comparables model
Discounted Cash Flow model
Book (Shareholders Equity)
Valuation
0
0
Company's Market Value of Common Equity:

Share Price
Shares Outstanding (mil)
Market Capitalization ($ mil)
###
###
###
Common Stock Over / (Under) Valuation:

Discounted Cash Flow model
Book (Shareholders Equity)
Summary of Findings (pt.
he Market
Business Unit contributio
quity Value ($ mil), per:

iscounted Cash Flow model
ook (Shareholders Equity)
$125.9
($237.6)
$213.7
$400
$300
Market Value of Common Equity:

$18.75
26.67
$500.0
hares Outstanding (mil)

Market Capitalization ($ mil)
$200
$100
$0
($100)
ck Over / (Under) Valuation:
rables model
sh Flow model
lders Equity)
Overall
($ mil)
$374
$738
$286
Dollars
per share
$14.03
$27.66
$10.73
($200)
297%
-310%
134%
($300)
Enterprise Value ($ mil):

9
ary of Findings (pt. 1)
Business Unit contribution to Enterprise Value ($ mil)

Market Comparables
$400
Biz1
$300 Biz2
Corp. Overhead
Market CompDiscounted Cash Flow

$0
$11
$337
$200
$11
($3)
$0
($212)
97%
3%
0%
$337
$11
$0
(1292%)
21%
1370%
$200
$337
$100
$200
$0
($3)
($100)
($212)
($200)
($300)
nterprise Value ($ mil):
$348.0
($15.5)
$200
($3)
($212)
Summary of Findings (pt. 2)

Business Unit Operating Leverage
8.0x
6.9x
7.0x
2011
6.0x
5.0x
Biz1
Biz2
2.5x
5.3x
2012
5.3x1.7x
6.9x
2013
1.8x
4.3x
4
4.0x
3.0x
2.5x
2.0x
1.8x
1.7x
1.0x
0.0x
2011
Note: Operating Leverage measures the effect on EBIT of a change in Revenue
10
2012
2013

Business Unit performance (historical & forecasted)
2008
15%
0%
2008
Biz1
Biz2
-5%
1%
2009
2010
2010 2011 2012

Operating
(EBITDA) M
2009
-14%
4%
-7%
5%
2011
3%
2%
2012
5%
1%
2013 (F)
20
(15%)
4.3x
(30%)
Biz1
Biz2
Economic Profit ($
$20
1.8x
$0
2008
Biz1
Biz2 2009
2010
(49)
(0)
(57) (39)
2011
6
2
(19)
2012
(1)
(6)
(2) 2013 (F)
20
($20)
($40)
2013
($60)
Note: Economic Profit measures the dollar amount returned in excess of the Required Return (per the
11

Business Unit return, 2012
2013 (F) 2014

(F) 2015 (F)
ing (EBITDA)
Margin
2012
4%
2%
5%
2%
Biz1
2016 (F) 2017 (F)
5%
2%
5%
2%
2014 (F)
2015 (F)
2016 (F)
2017 (F)
19.9%EBITDA
20.0%
Biz1
7.9%
Biz2
Corporate Ov
Biz2
0.0%
45.6
1.4
(30.3)
3.8%
(9.0%
(20.0%)
Return on Mkt Comp Valn

Free Cash Flow
Biz1
7.9%
Biz2
19.9%
Corporate Ov
#DIV/0!
(40.0%)
omic Profit ($ mil)
012
Corporate Over
40.0%
4%
2%
Biz1
2013 (F)
Biz2
(60.0%)
(14)
2013 (F)
(1)
(13)
2014
(1)(F)
(16)
(23)
(38)
2015
(F)
2016
(F)
(2)
(2)
(2)
2017 (F)
Biz1
(80.0%)
Biz2
Free Cash Flow
Return on Market Comps Value
Net Inco
Note: Return on Enterprise Value (i.e. Return on Market Valu

Growth opportunities are already priced into market
of the Required Return (per the Cost of Capital)

12
Summary of Find
Corporate Overhead
28.6%
FCF
N.I.
26.6
2.1
3.8%
(1.7)
Mkt Comps DCF

12.7
337.4
199.6
13.3%
(0.9)
10.6
(3.3)
1%
(30.3)
0.0
(211.8)
600,000
22.9%
14%
14%
500,000
6.3%
400,000
(9.0%)
300,000
on Mkt Comp Valn

Return on DCF Valn
Net Income Free Cash Fl Net Income EBITDA
3.8%
13.3%
6.3%
22.9%
(9.0%)
(63.5%)
28.6%
(43.2%)
#DIV/0!
1%
14%
14%
200,000
(43.2%)
100,000
(63.5%)
Net Income
Comps Value
Free Cash Flow
Return on Discounted Cash Flow Value
0
2008
Net Income
EBITDA
(100,000)
.e. Return on Market Value) is an imperfect measure, since it lacks a hard baseline, such as invested capital
lready priced into market value, making RoEV somewhat subjective. Nevertheless, it is useful for BU comparisons.
13

Net Working Capital- Historical & Forecasted ($000's)
Current Assets less Current Liabilities

600,000
2008
Biz1
500,000
Biz2
2009
2010
2011
Fiscal Years:
2012
2013 (F)
2014 (F)
2015 (F)
2016 (F)
39,502
7,810
(4,615)
13,455
2,314
58,230
91,318
127,208
165,603
(1,736)
2,257
8,667
5,550
9,269
12,249
13,858
15,588
17,415
37,767
10,066
4,052
19,005
11,583
70,479
105,176
142,795
183,018
Total Mfg
400,000
300,000
C
200,000
COR
100,000
Total
0
2008
522,362
489,581
444,184
416,700
319,080
196,210
166,491
135,135
98,387
560,129
499,647
448,236
435,706
330,664
266,689
271,667
277,930
281,404
2009
2010
2011
2012
2013 (F)
2014 (F)
2015 (F)
2016 (F)
2017 (F)
(100,000)
Current Assets:
Cash
Accounts receivable
Inventory
Assets held for sale
Other current
Current Liabilities:
Accounts payable
Other accrued current
Deferred revenue
2017 (F)
188,050
19,242
207,292
Biz1
Biz2
COR
61,639
268,931
2017 (F)
Name
Comp1
Comp2
Comp3
Company
Ticker
Market
Cap
EV
Trailing
P/E
Fwd P/E
million
million
ttm
Dec2013
ttm
ttm
444
2,000
246
500
463
4,740
122
600
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
COMP1
COMP2
COMP3
CO
5
Valuation
Price /
EV
Sales /EBITDA
Beta:
ROA
ROE
Rev
EBITDA
ttm
ttm
million
ttm
million
ttm
million
ttm
ttm
5.3%
4.3%
4.0%
4.6%
6.9%
8.9%
8.0%
10.6%
616
3,370
634
1,290
80
609
31
292
22
165
16
71
1.01
2.13
1.33
1.37
2.58
2.28
1.72
3.35
10
Return
11
12
13
Income Statement
14
15
16
17
Balance Sheet
18
Cash Flow St.
N.I. to
Diluted
Current
Common
EPS
Total Cash Total Debt Ratio
Oper. CF
million
million
273
305
128
41
275
2,980
0
420
million
ttm
4.69
2.15
2.6
1.19
40
181
73
16
19
Cash Flow St.
Levered
FCF
million
ttm
(53)
(890)
59
(32)
Consolidated Company View

Historical & Projected P&L ($000's)
chk
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
2008
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
2009
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
Fiscal Years:
2010
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
's for individual BU's
Discounting Factors
Terminal Growth
Valuation (Discounted FCF)
WACC
13.1%
Terminal Value Stage:
1-# Years 1-growth % 2-growth%
10
2.7%
1.3%
Forecasted
31,743
now thru 2017
Fully-diluted shares outst (000)

F/D 2012 earnings per share
Deliveries
Term Stg. 1 Term. Stg. 2

(34,187)
(13,010)
1 to 10 yrs
26,669
(0.70)
7,272
3,746
2,487
l Years:
2011
Periods out
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
Total
(15,454)
now thru
9,475
2012
0.3
995,761
915,310
80,452
8.1%
63,715
16,737
0
13,504
3,233
20,969
(17,735)
(3,520)
(14,215)
(342)
(14,557)
(3,993)
(18,551)
6,753
(21,456)
28,281
27,082
45,407
Comps
347,991
13,346
Nov30
0.5
248,174
228,765
19,410
7.8%
18,298
1,111
0
5,688
(4,576)
5,453
(10,029)
(4,030)
(5,999)
63
(5,937)
(746)
(6,683)
(546)
(3,750)
(1,248)
0
0
Quarters, FY2013
Feb28
May31
0.8
248,174
228,765
19,410
7.8%
18,298
1,111
0
5,688
(4,576)
5,453
(10,029)
(4,030)
(5,999)
63
(5,937)
(746)
(6,683)
(546)
(3,750)
0
0
0
1.0
248,174
228,765
19,410
7.8%
18,298
1,111
0
5,688
(4,576)
5,453
(10,029)
(4,030)
(5,999)
63
(5,937)
(746)
(6,683)
(546)
(3,750)
0
0
0
Fiscal Y
Aug31
1.3
248,174
228,765
19,410
7.8%
18,298
1,111
0
5,688
(4,576)
5,453
(10,029)
(4,030)
(5,999)
63
(5,937)
(746)
(6,683)
(546)
(3,750)
0
0
0
2013
1.3
992,698
915,059
77,639
7.8%
73,194
4,445
0
14,500
(10,055)
20,214
(30,269)
(12,259)
(18,010)
250
(17,760)
(2,984)
(20,744)
2,204
(16,500)
(32,780)
(32,576)
(48,285)
-2351.8%
3,133
3,133
3,133
3,133
12,534
2014
Fiscal Years:
2015
Terminal Years:
2016
2.3
3.3
4.3
1,135,356 1,175,758 1,146,099

1,043,428 1,079,509 1,051,713
91,928
96,249
94,386
8.1%
8.2%
8.2%
79,638
83,214
83,674
12,290
13,035
10,713
0
0
0
14,750
14,750
14,750
(2,460)
(1,715)
(4,037)
20,250
20,300
19,681
(22,710)
(22,015)
(23,719)
(9,210)
(8,842)
(9,550)
(13,500)
(13,173)
(14,169)
500
500
500
(13,000)
(12,673)
(13,669)
(4,591)
(4,942)
(5,088)
(17,592)
(17,615)
(18,757)
6,749
7,127
5,512
(17,500)
(17,500)
(16,500)
11,908
3,279
7,067
15,907
7,656
10,829
20,844
8,869
11,087
13,971
14,175
13,724
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)
(6,178)
9,011
6.3
(6,869)
(5,496)
7.3
(6,910)
(4,888)
8.3
(6,949)
(4,345)
9.3
(6,985)
(3,862)
10.3
(7,019)
(3,431)
11.3
(7,051)
(3,046)
12.3
(7,080)
(2,704)
13.3
(7,106)
(2,400)
14.3
(7,130)
(2,128)
15.3
(7,150)
(1,887)

Historical & Projected Balance Sheet ($000's
chk
ASSETS
Cash & cash equivalents
Restricted cash
Accounts receivable
Inventory
Invest. in direct finance leases
Equipment on operating leases
Plant & equipment
Accumulated depreciation
Net P&E
Goodwill
Intangibles & Other Assets
TOTAL ASSETS
2008
2009
Fiscal Years:
2010
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
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
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
Net Working Capital
560,129
499,647
448,236
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
cal Years:
2011
2012
Nov30
Quarters, FY2013
Feb28
May31
Fis
Aug31
2013
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
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
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
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
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
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
435,706
330,664
67,724
67,724
266,689
68,972
68,972
68,972
68,972
(3,005)
2014
Fiscal Years:
2015
2016
2017
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
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
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
271,667
277,930
281,404
268,931
(2,583)
(3,148)
(2,397)
(2,441)

Historical & Projected Statement of Cash Flows ($000's
chk
OPERATING ACTIVITIES
Net Earnings
Depreciation & amortization
(Gain)/Loss on sale of equipment
Impairment & special charges
Other operating items
Change in Assets:
Accounts receivable
Inventories
Change in Liabilities
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
CASH & EQUIVALENTS AT END 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
0
Fiscal Years:
2008
2009
(67,133) (129,047)
0
0
11,935
13,015
0
0
2,302
55,667
(3,182)
(1,472)
0
0
0
0
32,820
56,646
0
2,159
0
(75,061)
0
(2,228)
(56,078) (47,501)
0
148
0
0
858
0
(91,166)
0
0
0
(26,491) (11,807)
0
0
### (11,659)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
### (59,160)
627,367 454,490
454,490 395,330
Check
11,935
24,949
Fiscal Years:
2010
Quarters, FY2013
Feb28
May31
2011
2012
(59,160)
0
13,123
0
(11,870)
4,054
(29,409)
0
12,622
0
0
2,101
(18,551)
0
13,504
0
0
3,993
(6,683)
0
5,688
0
0
746
9,584
(1,753)
0
6,223
(25,446)
(70,269)
0
8,066
(13,030)
(5,668)
0
7,606
5,912
12,301
0
0
(7,503)
83,408
(6,298)
(1,692)
(53,600) (20,620)
40,498
(1,124)
27,228
(19,460)
0
(1,497)
0
0
(249)
0
0
(249)
0
20,052
0
729
(249) (36,040)
(1,442)
552
0
0
0
0
(927)
(479)
(100)
0
0
0
0
0
0
(12,359) (22,455) (21,456)
0
0
0
(14,728) (22,382) (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)
0
0
0
0
0
0
0
0
0
0
(3,750) (16,500)
0
0
(3,750) (16,500)
2,630
1,416
0
0
0
0
0
0
0
0
4,046
14,228
(23,973)
(404) (72,154)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
13,824 (96,127)
Nov30
0
0
0
0
0
0
0
0
0
0
0
(6,683)
0
5,688
0
0
746
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Aug31
(6,683)
0
5,688
0
0
746
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2013
(6,683)
0
5,688
0
0
746
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(20,744)
0
14,500
0
0
2,984
(22,330)
(34,658)
0
3,427
7,115
(404)
0
0
0
0
0
0
0
0
6,711
0
0
0
0
0
0
0
0
(64,282) (29,178) (90,456)
(5,247)
(3,999)
(3,999)
(3,999) (45,829)
395,330 331,048 301,871
211,415 206,168 202,169 198,169 194,170
331,048 301,871 211,415 206,168 202,169 198,169 194,170 148,341
38,073
48,786
62,481
67,716
71,704
75,693
79,681
27,553
2014
Fiscal Years:
2015
2016
2017
(18,757)
0
14,750
0
0
5,088
(29,426)
0
14,750
0
0
3,652
(17,592)
0
14,750
0
0
4,591
(17,615)
0
14,750
0
0
4,942
(10,540)
(8,253)
0
3,281
(2,956)
(5,145)
0
3,433
3,652
6,560
0
0
2,974
5,164
0
0
26,374
1,046
13,657
7,400
547
5,356
(3,145)
0
8,148
(6,621)
0
(9,508)
0
0
0
0
0
(16,500)
0
(16,500)
0
0
0
0
0
(16,500)
0
(16,500)
0
0
0
0
0
(17,500)
0
(17,500)
0
(204)
0
0
0
0
0
0
0
0
(204)
0
(4,047)
148,341
144,294
0
0
0
0
0
(17,500)
0
(17,500)
0
0
0
0
0
0
0
0
0
0
0
0
(12,144)
144,294
132,150
0
0
0
0
0
0
0
0
0
0
0
0
(8,351)
132,150
123,799
0
0
0
0
0
0
0
0
0
0
0
0
(26,008)
123,799
97,791
48,485
70,171
89,064
104,115

Historical & Projected Ratios & Analysis
RATIOS
Profitability Ratios
Gross Margin
EBITDA Margin
Return on Equity (ROE)
Ret. on Invested Capital (ROIC)
Cash ROIC
Turnover / Efficiency Ratios
Asset Turnover
Inventory Turns - COGS/Invntry
Days Receivable - AR/Revenue
Days Payable - AP/COGS
Liquidity Ratios
Debt-to-EBITDA
Net Debt-to-EBITDA
EBITDA-to-Interest Expense
Times Interest Earned
Current Ratio
Quick Ratio
Leverage Ratios
Debt / Equity
Net Debt / Equity
Long-Term Debt / Equity
Debt / Total Capitalization
Net Debt / Total Capitalization
Click
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%
0.71x
6.16x
36 days
89 days
0.52x
9.41x
28 days
68 days
0.37x
5.37x
28 days
102 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
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)
ECONOMIC PROFIT ANALYSIS

Net operating profit after-tax
Total operating capital
After-tax cost of capital
Dollar cost of capital
Economic profit
Click
LEVERAGE ANALYSIS
Operating: EBIT / Sales
(32,957)
583,492
13.1%
76,529
(109,485)
Revenue
3rd parties
COGS
OpEx
(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
53,928
53,928
Financial:
Earnings / EBIT
Combined: Earnings / Sales
Impairmt
EBIT
Interest
Taxes
Earnings
0
(10,312)
23,382
(16,907)
(16,787)
0
(5,681)
23,382
(14,583)
(14,480)
Click
Z-SCORE FOR FINANCIAL DISTRESS

Where Z is the sum of:
1.2 * Net Working Cap'l / Assets
1.4 * Retained Earnings / Assets
3.3 * EBIT / Assets
0.6 * MV Equity / BV of Liabilities
1.0 * Sales / Assets
If no changes to the status-quo:
1.81 >Z ... Risk of Isolvency
<Z< Potential Distress
2.675 <Z ... No Distress
Click
's below to unhide:

INCOME STATEMENT
BALANCE SHEET
MV Equity:
414,000
0.622
0.324
-0.234
0.511
0.709
1.933
0.651
0.221
-0.580
0.607
0.523
1.423
0
1
0
0.653
0.045
-0.203
0.647
0.370
1.512
1
0
0
1
0
0
al Years:
2011
2012
Nov30
Quarters, FY2013
Feb28
May31
6.7%
-1.1%
-15.2%
-1.6%
4.4%
8.1%
1.7%
-9.5%
2.9%
8.7%
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%
7.8%
0.4%
-11.0%
0.9%
7.0%
0.91x
5.67x
23 days
84 days
1.41x
7.70x
21 days
75 days
0.36x
2.15x
75 days
269 days
0.36x
2.15x
75 days
269 days
0.36x
2.15x
75 days
269 days
0.36x
2.15x
75 days
269 days
1.54x
6.48x
27 days
75 days
(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
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
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
1.7
(0.1)
1.6
2.3
(1.3)
1.2
(0.2)
1.2
2.0
(0.4)
1.2
(0.2)
1.2
2.0
(0.6)
1.2
(0.2)
1.2
2.0
(0.6)
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
(3,335)
518,586
13.1%
68,016
(71,350)
6,753
434,958
13.1%
57,048
(50,294)
(546)
436,195
13.1%
57,210
(57,756)
(546)
436,183
13.1%
57,208
(57,754)
(546)
436,172
13.1%
57,207
(57,753)
(546)
436,161
13.1%
57,205
(57,751)
Delta
10.0%
Leverage
(4.5)x
2012
Sales+10%
995,761 1,095,337
(4,335)
(4,335)
915,310 1,006,841
63,715
63,715
F
Aug31
2013
Delta
10.0%
2,204
378,254
13.1%
49,610
(47,406)
Leverage
6.5x
-44.9%
0.3x
-13.7%
(1.4)x
0.537
-0.085
-0.088
0.518
0.910
1.792
0.451
-0.102
0.015
0.588
1.414
2.366
1
0
0
0
12,402
20,969
(3,520)
(5,047)
0.453
-0.119
-0.022
0.605
0.362
1.279
0
1
0
0.453
-0.119
-0.022
0.605
0.362
1.279
1
0
0
0
20,447
20,969
(214)
(307)
0.453
-0.119
-0.022
0.605
0.362
1.279
1
0
0
1
0
0
64.9%
(1.4)x
-93.9%
(9.4)x
0.453
-0.119
-0.022
0.605
0.362
1.279
0.366
-0.123
-0.051
0.577
1.538
2.307
1
0
0
0
1
0
2014
Fiscal Years:
2015
2016
2017
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%
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
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
0.1
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
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
73,194
73,194
(6,593)
395,294
13.1%
51,845
(58,438)
Delta
10.0%
Leverage
45.4x
0
1,711
20,214
(12,259)
(6,244)
0.361
-0.120
-0.012
0.542
1.665
2.437
0.369
-0.118
-0.008
0.533
1.679
2.455
0
1
0
0
9,475
20,214
(7,115)
(3,624)
0.374
-0.112
-0.019
0.537
1.636
2.416
0
1
0
453.7%
(0.1)x
-42.0%
(4.2)x
0.363
-0.141
-0.117
0.545
1.206
1.855
0
1
0
0
1
0

Historical & Projected Debt Schedule ($000's)
2008
NOTES PAYABLE
Proceeds / (Repayments)
Term Loan #1
Senior Notes
Term Loan #2
Term Loan #3
Total Proceeds & Repayments
Fiscal Years:
2010
2009
1,416
0
check against Cash Flows
Principal Balance
Term Loan #1
Senior Notes
Term Loan #2
Term Loan #3
Total Principal Balance
0
0
71,750
235,000
1,416
0
71,750
235,000
1,416
0
306,750 306,750 308,166
check against Balance Sheet
Interest Expense
Term Loan #1
Senior Notes
Term Loan #2
Term Loan #3
Total Interest Expense
Revolver Interest Expense

Revolver
Line of Credit
Total Revolver Interest Expense
TOTAL INTEREST EXPENSE
check against P&L
31,592
32,789
35,255
31,592
32,789
35,255
0
2,630
2,630
REVOLVING NOTES
Draws / (Paybacks) of Revolvers
Revolver
Line of Credit
Ending (outstanding) Balance
check against Balance Sheet
71,750
235,000
0
0
729
5,909
6,638
3,233
4,665
7,897
1,868
1,843
3,711
38,230
40,686
38,966
scal Years:
2011
2012
Nov30
0 (71,750)
0
0
(404)
(404)
0
0
(404) (72,154)
0
345
19,681
339
0
20,366
18,250
(1,392)
16,858
(8,250)
1,135
(7,115)
0
0
0
Fiscal Years:
Aug31
0
0
0
0
2013
2014
0
(404)
0
(404)
0
0
0
(204)
0
(204)
0
0
0
0
0
0
0
235,000 235,000 235,000 235,000 235,000 235,000
608
608
608
608
204
(0)
0
0
0
0
0
0
235,608 235,608 235,608 235,608 235,204 235,000
0
2,770
19,681
297
0
22,748
0
0
71,750
0
235,000 235,000
1,012
608
0
0
307,762 235,608
0
Quarters, FY2013
Feb28
May31
0
4,920
14
0
4,935
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
303
330
633
485
117
603
400
119
519
400
119
519
400
119
519
400
119
519
400
119
519
450
119
569
23,382
20,969
5,453
5,453
5,453
5,453
20,214
20,250
Fiscal Years:
2015
2016
2017
0
0
0
0
0
0
0
0
0
0
235,000
235,000 235,000
(0)
0
235,000 235,000 235,000
0
0
19,681
0
0
19,681
19,681
19,681
19,681
19,681
500
119
619
20,300
0
19,681
0
19,681
0
Business Unit 1
Business Drivers (totals in 000's)
Fiscal Years:
2013
Production by Product Type 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
Total
Pricing 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
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
Large Product 5
Facility
BBB
CCC
CCC
CCC
CCC
AAA
CCC
AAA
CCC
2014
3,786
33
325
1,311
4,621
1,440
1,129
4,195
4,712
244
125
430
11,334
325
1,429
12,771
Inflation:
$63
$77
$128
$102
$64
$77
$98
4.08%
$66
$80
$133
$106
$0
$67
$0
$80
$0
$0
$102
$0
$0
$0
7.0%
8%
8%
7%
7.0%
8%
9%
8%
9%
8%
7%
Large Product 5
Product 6
Other #1
Other #2
Other #3
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
Gross Margin $
Facility
10%
7%
7%
$13,000
$0
$13,000
$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
$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
$788,911
$913,976
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
$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
Fiscal Years:
2015
2016
2017
4,946
4,946
1,625
325
1,287
325
837
325
837
973
973
973
4,736
4,736
3,000
191
516
191
516
191
860
12,975
12,524
7,811
3.02%
$67
$82
$137
$109
$0
$69
$0
$82
$0
$0
$105
$0
$0
$0
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%
7.0%
8%
7%
8%
7%
8%
7%
9%
9%
9%
9%
9%
9%
7%
9%
7%
9%
7%
9%
$14,000
$0
$14,000
$14,000
$0
$14,000
$14,000
$0
$14,000
$333,745
$0
$44,431
$140,756
$0
$66,917
$0
$389,698
$0
$0
$53,999
$0
$0
$0
$1,029,545
$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
$310,383
$0
$40,876
$130,903
$0
$60,894
$0
$354,625
$0
$0
$49,139
$0
$0
$0
$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
$946,820
$919,024
$619,403
$23,362
$0
$3,554
$9,853
$0
$6,022
$0
$35,073
$0
$0
$4,860
$0
$0
$0
$0
$82,725
$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
P&L
Revenue
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%
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%
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
2.50%
97.50%
249
9,698
9,947
383
14,922
15,304
412
16,063
16,474
40%
40%
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
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
2014
Fiscal Years:
2015
3.00%
1.50%
50%
l Years:
2016
2017
999,886
919,024
80,862
8.1%
675,556
619,403
56,152
8.3%
520,826
473,951
0.00%
(1,302)
48,176
9.3%
420,058
382,252
0.00%
(1,050)
38,855
9.3%
2,009
2,977
2,794
15,625
7,812
31,217
2,009
2,977
2,794
12,602
6,301
26,682
424
16,536
16,960
304
11,869
12,173
170
6,614
6,784
10,176
5,088
122
4,748
4,869
7,304
3,652
Business Unit 1
2008
2009
Fiscal Years:
2010
2011
Periods out
Revenue
Cost of revenues
Gross margin $
Gross margin %
EBITDA
Dep'n & amort.
EBIT
Income taxes
Earnings, Internal
Net earnings
NOPAT
Free cash flow
Discounted FCF
Tax Rate
Terminal Stage1 # Yrs beyond 2017
Terminal Stage1 Growth %
WACC
Valuation
Deliveries
400,939
403,769
(2,830)
-0.7%
15,434
(18,264)
229,083 161,309
256,093 161,351
(27,010)
(42)
-11.8%
0.0%
5,691
11,386
(32,701) (11,428)
598,906
563,940
34,966
5.8%
18,559
16,407
8,435
(26,698)
729
(27,427)
(489)
(26,939)
872
(26,067)
3,182
(22,885)
(26,210)
(19,719)
0
(37,494)
9,556
(42,257)
3,233
(45,490)
(3,279)
(42,211)
(565)
(42,776)
1,472
(41,304)
(38,978)
(8,029)
9,582
(27,869)
8,361
8,046
600
7,446
4,201
3,245
(592)
2,653
(2,101)
552
3,845
(19,150)
(11,103)
(18,048)
40%
10
3.0%
2.0%
13.1%
199,639
337,419
DCF
Comps
5,786
9,151
(20,579)
1,868
(22,447)
1,387
(23,834)
(607)
(24,441)
(4,054)
(28,495)
(21,966)
(7,702)
(1,977)
(22,494)
Term'l Per.
10.8
31,065
Perp. DCF
2,611
69.0%
1,907
8,735
2012
Nov30
-4.2
-3.9
Quarters, FY2013
Feb28
May31
-3.7
-3.4
Aug31
-3.2
870,658 213,496 213,496 213,496 213,496

800,693 197,228 197,228 197,228 197,228
69,966
16,269
16,269
16,269
16,269
8.0%
7.6%
7.6%
7.6%
7.6%
24,345
6,667
6,667
6,667
6,667
45,621
9,602
9,602
9,602
9,602
0
0
0
0
8,800
2,438
2,438
2,438
2,438
36,821
7,164
7,164
7,164
7,164
825
414
414
414
414
35,996
6,750
6,750
6,750
6,750
18,991
2,700
2,700
2,700
2,700
17,005
4,050
4,050
4,050
4,050
(342)
63
63
63
63
16,663
4,112
4,112
4,112
4,112
(3,993)
(746)
(746)
(746)
(746)
12,670
3,366
3,366
3,366
3,366
17,830
4,464
4,464
4,464
4,464
(18,500)
(3,250)
(3,250)
(3,250)
(3,250)
18,506
(1,248)
0
0
0
26,635
44,657
0
0
0
0
12,246
2,833
2,833
2,833
2,833
2013
-3.2
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)
(25,811)
11,334
2014
Fiscal Years:
2015
-2.2
-1.2
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
34,576
24,413
12,771
12,975
cal Years:
Terminal Years:
2016
-0.2
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
27,364
12,524
2017
0.8
1.8
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
8,812
8,024
7,811
2.8
3.8
4.8
10,329
7,306
10,639
6,653
10,958
6,058
5.8
11,287
5,516
6.8
7.8
11,626
5,023
11,974
4,574
8.8
9.8
10.8
12,334
4,165
12,704
3,792
13,085
3,453
Business Unit 1
Historical & Projected Balance Sheet ($000's)
2008
ASSETS
Restricted cash
Accounts receivable
Inventory
Plant & equipment
Net P&E
Goodwill
TOTAL ASSETS
LIABILITIES
Revolving notes
Deferred revenue
Notes payable
Other liabilities
TOTAL LIABILITIES
EQUITY
Company
Preferred stock
Common stock
Retained earnings
TOTAL EQUITY
Net Working Capital
Check
Ratio Toggles
Fiscal Years:
2010
2009
36,513
14,402
40,117
65,488
17,380
27,188
12,470
29,983
136,506
127,974
132,614
136,506
127,974
132,614
278,623
186,945
175,068
0
98,208
0
47,311
0
44,793
4,407
3,850
2,275
1,416
102,615
51,161
48,485
176,008
135,784
126,583
176,008
135,784
126,583
176,008
278,623
135,784
186,945
126,583
175,068
39,502
7,810
(4,615)
6.17x
37 days
9.42x
28 days
5.38x
28 days
89 days
67 days
101 days
cal Years:
2011
2012
Nov30
Quarters, FY2013
Feb28
May31
Fiscal Yea
Aug31
2013
6,967
14,332
20,623
26,914
33,205
39,497
37,477
38,470
99,345
50,019
103,895
44,107
91,594
44,107
91,594
44,107
91,594
44,107
91,594
63,352
121,701
163,521
177,329
177,329
177,329
177,329
177,329
181,172
163,521
177,329
177,329
177,329
177,329
177,329
181,172
308,304
345,575
333,653
339,945
346,236
352,527
403,702
18,250
129,475
(8,250)
0
164,360 144,899
0
144,899
0
144,899
0
144,899
0
162,546
1,852
1,571
1,571
1,571
1,571
1,571
1,754
1,012
608
608
608
608
608
204
150,589
158,289
147,079
147,079
147,079
147,079
164,504
157,715
187,286
185,327
191,618
197,909
204,201
242,204
157,715
187,286
185,327
191,618
197,909
204,201
242,204
157,715
308,304
187,286
345,575
185,327
332,406
191,618
338,697
197,909
344,988
204,201
351,279
242,204
406,707
13,455
2,314
58,230
1,248
1,248
1,248
1,248
(3,005)
5.68x
23 days
7.71x
21 days
2.15x
75 days
2.15x
75 days
2.15x
75 days
2.15x
75 days
6.48x
27 days
84 days
75 days
268 days 268 days 268 days 268 days
75 days
Fiscal Years:
2015
2014
2016
2017
77,077
112,461
157,597
181,899
73,627
130,877
76,323
135,562
72,671
129,002
69,698
123,838
185,280
189,257
189,257
189,257
185,280
189,257
189,257
189,257
466,862
513,602
548,527
564,691
0
188,248
0
194,986
0
191,516
0
185,233
2,015
2,152
2,152
2,152
(0)
(0)
190,263
197,138
193,668
187,385
279,182
319,613
357,256
379,748
279,182
319,613
357,256
379,748
279,182
469,445
319,613
516,750
357,256
550,923
379,748
567,132
91,318
127,208
165,603
188,050
(2,583)
(3,148)
(2,397)
(2,441)
6.98x
27 days
6.98x
27 days
7.12x
27 days
5.00x
38 days
(plug to tie Cash Flow)
(plug to Balance)
75 days
75 days
76 days
109 days
Business Unit 1
Historical & Projected Statement of Cash Flows ($000's)
Fiscal Years:
2008
Net Earnings
Change in Assets:
Accounts receivable
Inventories
Deferred revenue
Acquisition
Capital expenditures (maintenance)
Capital expenditures (growth)
Change in Revolver
Dividends
2009
(22,885) (41,304)
0
8,435
9,556
0
(3,182)
0
(1,472)
22,736
38,300
0
0
(50,897)
(557)
(17,632) (23,638)
(19,719)
0
(8,029)
(19,719)
(8,029)
0
0
(37,351) (31,667)
65,429
28,078
28,078
(3,589)
Check
8,435
17,991
Fiscal Years:
2010
2011
(28,495)
0
9,151
0
4,054
2012
Quarters, FY2013
Feb28
May31
Nov30
Aug31
2013
552
0
8,361
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
0
2,101
0
3,993
0
746
0
746
0
746
0
746
0
2,984
0
0
0
0
0
0
0
0
0
0
0
0
(19,245)
(30,107)
0
0
0
0
6,550
0
0
6,550
0
0
6,550
17,646
182
(4,578)
4,910
(2,795)
0
0
(26,000)
(69,362)
0
0
(11,548)
(4,550)
0
0
5,912
12,301
0
0
(2,518)
(1,575)
(17,267)
84,681
(423)
(90)
34,885
(281)
43,969
(19,460)
0
5,302
Fi
0
(7,702)
0
(19,150)
0
(18,500)
0
(3,250)
0
(3,250)
0
(3,250)
0
(3,250)
(7,702)
(19,150)
(18,500)
(3,250)
(3,250)
(3,250)
(3,250)
0
1,416
18,250
(404)
(26,500)
(404)
0
0
0
0
0
0
0
0
8,250
(404)
1,416
17,846
(26,904)
7,846
(1,394)
(27,142)
(28,536)
(1,435)
(28,536)
(29,971)
(23,553)
(3,589)
(27,142)
2,052
(29,971)
(27,919)
3,300
(27,919)
(24,619)
3,300
(24,619)
(21,319)
3,300
(21,319)
(18,019)
0
(13,000)
0
(13,000)
(9,732)
(18,019)
(27,751)
27,142
35,503
44,303
48,542
51,533
54,524
57,516
65,228
Fiscal Years:
2015
2014
2016
2017
19,083
0
10,250
20,138
0
10,500
18,899
0
10,500
8,230
0
10,500
0
4,591
0
4,942
0
5,088
0
3,652
(10,275)
(9,176)
0
0
(2,696)
(4,684)
0
0
3,652
6,560
0
0
2,974
5,164
0
0
25,703
262
40,437
6,738
137
35,075
(3,470)
0
41,229
(6,283)
0
24,236
0
(14,000)
0
(14,000)
0
(14,000)
0
(14,000)
0
0
(14,000) (14,000)
0
0
(14,000) (14,000)
0
(204)
0
0
0
0
0
0
(204)
27,229
19,556
46,785
10,236
46,785
57,021
26,233
(27,751)
(1,519)
21,075
(1,519)
19,556
78,596
92,905
110,813
124,878
Business Unit 2
Business Drivers (totals in 000's)
Fiscal Years:
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
1,200
1,200
$346
$355
8.7%
8.7%
3.00
3.00
$2,000
$0
$2,000
$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
Cost of Revenues (USD)

Product 1
Product 2
Product 3
$126,148
$0
$0
$126,148
$129,452
$0
$0
$129,452
$12,072
$0
$0
$12,072
$12,401
$0
$0
$12,401
Exchange Rate
Capital Expenditures
Maintenance
Growth
Total Capital Expenditures
Gross Margin $
Product 1
Product 2
Product 3
Fiscal Years:
2015
2016
1,200
1,200
1,200
1,200
$363
$363
2017
1,200
1,200
$363
8.7%
8.7%
8.7%
3.00
3.00
3.00
$2,500
$0
$2,500
$2,500
$0
$2,500
$2,500
$0
$2,500
$145,399
$0
$0
$145,399
$145,399
$0
$0
$145,399
$145,399
$0
$0
$145,399
$132,689
$0
$0
$132,689
$132,689
$0
$0
$132,689
$132,689
$0
$0
$132,689
$12,711
$0
$0
$12,711
$12,711
$0
$0
$12,711
$12,711
$0
$0
$12,711
P&L
Revenue
Cost of revenues
Gross margin $
Gross margin %
OpEx (SG&A
Biz2 Mgmt Fee
Other
Total OpEx
2013
Cost of revenues
s margin $
s margin %
Biz2 Mgmt Fee
138,220
126,148
12,072
8.7%
$7,764
$380
$1,122
$9,266
2014
Fiscal Years:
2015
141,853
129,452
12,401
8.7%
$8,153
$380
$1,178
$9,711
145,399
132,689
12,711
8.7%
$8,560
$380
$1,237
$10,177
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
2008
2009
Fiscal Years:
2010
2011
Periods out
Revenue
Cost of revenues
Gross margin $
Gross margin %
EBITDA
Dep'n & amort.
EBIT
Income taxes
Earnings, Internal
Net earnings
NOPAT
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
88,535
78,283
10,252
11.6%
8,331
1,921
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
1,583
338
330
8
463
(456)
(6,255)
1,243
(6,255)
(346)
(4,393)
0
(1,907)
1,243
5,908
(1,080)
3,431
10,173
Tax Rate
WACC
Valuation
18%
10
3.0%
1.0%
13.1%
(3,310)
10,572
DCF
Comps
Deliveries
1,486
974
974
2,817
(1,012)
(1,631)
2,083
(456)
(456)
(125)
(1,806)
(2,261)
(2,609)
Term'l Per.
10.8
(1,042)
Perp. DCF
1,135
-419.5%
580
740
2012
-4.2
124,787
114,899
9,888
7.9%
8,459
1,429
1,798
(369)
117
(486)
462
(948)
(948)
(948)
(831)
(1,456)
2,591
2,102
3,525
1,100
Nov30
-3.9
Quarters, FY2013
Feb28
May31
-3.7
34,555
31,537
3,018
8.7%
2,317
701
0
500
201
119
83
15
68
0
68
0
68
187
(500)
0
-3.4
34,555
31,537
3,018
8.7%
2,317
701
0
500
201
119
83
15
68
0
68
0
68
187
(500)
0
34,555
31,537
3,018
8.7%
2,317
701
0
500
201
119
83
15
68
0
68
0
68
187
(500)
0
300
300
300
Aug31
2013
-3.2
-3.2
Fiscal Years:
2014
2015
-2.2
-1.2
34,555 138,220 141,853 145,399

31,537 126,148 129,452 132,689
3,018
12,072
12,401
12,711
8.7%
8.7%
8.7%
8.7%
2,317
9,266
9,711
10,177
701
2,806
2,690
2,533
0
0
0
0
500
2,000
2,000
2,250
201
806
690
283
119
119
119
119
83
687
571
165
15
124
103
30
68
563
468
135
0
0
0
0
68
563
468
135
0
0
0
0
68
563
468
135
187
682
587
254
(500)
(2,000)
(2,500)
(2,500)
0
(4,957)
1,722
147
(4,275)
1,809
150
0
(6,336)
2,371
174
300
1,200
1,200
1,200
scal Years:
Terminal Years:
2016
2017
-0.2
0.8
145,399 145,399
132,689 132,689
12,711
12,711
8.7%
8.7%
10,177
10,177
2,533
2,533
0
0
2,250
2,250
283
283
0
0
283
283
51
51
232
232
0
0
232
232
0
0
232
232
232
232
(2,500)
(2,500)
325
(338)
308
(356)
315
(322)
1,200
1,200
1.8
(367)
(293)
2.8
(378)
(267)
3.8
(389)
(243)
4.8
(401)
(221)
5.8
(413)
(202)
6.8
(425)
(184)
7.8
(438)
(167)
8.8
(451)
(152)
9.8
(464)
(139)
10.8
(478)
(126)
Business Unit 2
2008
ASSETS
Restricted cash
Accounts receivable
Inventory
Plant & equipment
Net P&E
Goodwill
TOTAL ASSETS
LIABILITIES
Revolving notes
Deferred revenue
Notes payable
Other liabilities
TOTAL LIABILITIES
Fiscal Years:
2010
2009
0
7,423
12,203
20,999
32,272
10,915
13,925
6,241
12,883
53,271
32,263
31,327
0
48,396
0
24,232
2,630
19,247
6,611
5,775
3,413
55,006
30,007
25,289
(1,736)
2,257
6,038
EQUITY
Company
Preferred stock
Common stock
Retained earnings
TOTAL EQUITY
(1,736)
2,257
6,038
(1,736)
53,271
2,257
32,263
6,038
31,327
Net Working Capital
(1,736)
2,257
8,667
6.17x
37 days
9.42x
28 days
5.38x
28 days
Check
Ratio Toggles
89 days
67 days
101 days
cal Years:
2011
2012
Quarters, FY2013
Feb28
May31
Nov30
Fiscal Yea
Aug31
2013
6,824
13,134
13,612
14,090
14,568
15,046
11,157
5,687
13,791
7,169
14,909
7,169
14,909
7,169
14,909
7,169
14,909
7,169
14,909
10,254
19,460
26,302
35,212
35,690
36,168
36,645
37,123
40,871
(1,392)
17,973
1,135
23,586
0
23,586
0
23,586
0
23,586
0
23,586
0
25,991
2,779
2,357
2,357
2,357
2,357
2,357
2,631
19,360
27,078
25,943
25,943
25,943
25,943
28,622
6,942
8,134
9,747
10,225
10,703
11,181
12,249
6,942
8,134
9,747
10,225
10,703
11,181
12,249
6,942
26,302
8,134
35,212
9,747
35,690
10,225
36,168
10,703
36,645
11,181
37,123
12,249
40,871
5,550
9,269
5.68x
23 days
7.71x
21 days
2.12x
76 days
2.12x
76 days
2.12x
76 days
2.12x
76 days
6.48x
27 days
12,249
84 days
75 days
273 days 273 days 273 days 273 days
75 days
Fiscal Years:
2015
2014
2016
2017
14,488
16,365
18,517
20,007
10,518
18,537
10,779
18,998
10,779
18,998
10,779
18,998
43,543
46,141
48,294
49,783
0
26,663
0
27,326
0
27,651
0
27,313
3,023
3,228
3,228
3,228
29,686
30,554
30,879
30,541
13,858
15,588
17,415
19,242
13,858
15,588
17,415
19,242
13,858
43,543
15,588
46,141
17,415
48,294
19,242
49,783
13,858
15,588
17,415
19,242
6.98x
27 days
6.98x
27 days
6.98x
27 days
6.98x
27 days
(plug to Balance)
75 days
75 days
76 days
75 days
Business Unit 2
Fiscal Years:
2008
Net Earnings
Change in Assets:
Accounts receivable
Inventories
Deferred revenue
Acquisition
Change in Revolver
Dividends
2009
(6,255)
2,832
1,243
0
1,914
0
0
0
0
10,084
18,346
0
0
(3,423)
(24,164)
(836)
6,589
(4,393)
0
(4,393)
0
(1,080)
0
(1,080)
0
0
(7,816)
4,984
(2,832)
5,509
(2,832)
2,677
Check
2,832
4,746
Fiscal Years:
2010
974
0
1,909
0
0
4,674
1,042
0
0
(4,985)
(2,362)
1,253
2011
2012
(456)
0
1,583
0
0
Nov30
(948)
0
1,798
0
0
Quarters, FY2013
Feb28
May31
F
Aug31
2013
68
0
500
68
0
500
68
0
500
68
0
500
563
0
2,000
0
0
0
0
0
0
0
0
0
0
554
(907)
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
(1,274)
(634)
(1,134)
5,613
(421)
3,441
0
0
568
0
0
568
0
0
568
0
0
568
2,406
273
(2,393)
0
(500)
0
(500)
0
(500)
0
(500)
0
(500)
0
(500)
0
(500)
0
(500)
0
(1,012)
0
(1,012)
0
(1,806)
0
(1,806)
0
(1,456)
0
(1,456)
0
(2,000)
0
(2,000)
2,630
0
(4,022)
0
2,527
0
0
0
0
0
0
0
0
0
(1,135)
0
2,630
(4,022)
2,527
(1,135)
2,870
2,677
5,547
(6,961)
5,547
(1,414)
4,512
(1,414)
3,097
68
3,097
3,165
68
3,165
3,233
68
3,233
3,301
68
3,301
3,369
(5,528)
3,369
(2,159)
6,656
8,238
10,036
10,446
10,856
11,266
11,676
13,316
Fiscal Years:
2015
2014
2016
2017
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
(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)
0
0
0
0
0
0
0
0
1,691
(2,159)
(468)
32
(468)
(437)
308
(437)
(129)
(356)
(129)
(485)
14,956
16,801
18,646
20,491
Corporate Overhead Business Unit

2008
2009
Fiscal Years:
2010
2011
Periods out
Revenue
Cost of revenues
Gross margin $
Gross margin %
EBITDA
Dep'n & amort.
EBIT
Income taxes
Earnings, Internal
Net earnings
NOPAT
Free cash flow
Discounted FCF
Tax Rate
WACC
Valuation
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)
(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
40%
10
2.0%
1.0%
13.1%
(211,784)
DCF
(88,986)
(56,197)
(2,698)
1,324
(56,028)
Term'l Per.
10.8
(43,033)
Perp. DCF
0
Comps
-100.0%
2,678
(28,625)
22,451
(51,076)
(21,571)
(29,506)
0
(29,506)
2012
Nov30
-4.2
-3.9
Quarters, FY2013
Feb28
May31
-3.7
-3.4
Aug31
2013
2014
Fiscal Years:
2015
-3.2
-3.2
-2.2
-1.2
316
(282)
598
189.2%
30,911
(30,313)
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)
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)
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)
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)
(30,272)
(10,246)
(1,500)
7,185
(1,655)
(2,775)
(10,117) (10,117) (10,117) (10,117)

(5,197) (5,197) (5,197)
(5,197)
0
0
0
0
0
0
0
0
(35,519)
(15,837)
(1,500)
3,700
(10,887)
(16,137)
(37,143)
(17,462)
(1,000)
3,673
(12,289)
(16,103)
(37,888)
(18,207)
(1,000)
3,638
(13,569)
(15,719)
scal Years:
Terminal Years:
2016
2017
-0.2
0.8
814
0
814
100.0%
42,280
(41,466)
814
0
814
100.0%
42,280
(41,466)
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)
(37,888)
(18,207)
0
0
(16,207)
(16,592)
(37,888)
(18,207)
0
0
(16,207)
(14,668)
1.8
(16,531)
(13,227)
2.8
(16,862)
(11,927)
3.8
(17,199)
(10,755)
4.8
(17,543)
(9,698)
5.8
(17,894)
(8,745)
6.8
(18,252)
(7,886)
7.8
(18,617)
(7,111)
8.8
(18,989)
(6,412)
9.8
(19,369)
(5,782)
10.8
(19,756)
(5,214)

ASSETS
Restricted cash
Accounts receivable
Inventory
Plant & equipment
Net P&E
Goodwill
TOTAL ASSETS
LIABILITIES
Revolving notes
Deferred revenue
Notes payable
Other liabilities
TOTAL LIABILITIES
Fiscal Years:
2010
2008
2009
429,912
1,231
0
0
398,454
1,083
0
0
356,918
2,525
0
0
99,061
530,204
96,902
496,439
90,679
450,122
0
0
15,313
6,611
0
0
15,313
5,775
0
0
0
3,413
306,750
306,750
306,750
328,674
327,838
310,163
17
117,060
(24,924)
22
172,404
(111,660)
EQUITY
Company
Preferred stock
Common stock
Retained earnings
TOTAL EQUITY
125,188
8,618
133,806
462,480
92,153
8,724
100,877
428,715
60,766
11,469
72,235
382,398
Net Working Capital
522,362
489,581
444,184
Check
Ratio Toggles
17
99,677
25,495
67,724
67,724
67,724
0.00x
0 days
0.00x
0 days
0.00x
0 days
0 days
0 days
0 days
iscal Years:
2011
2012
Nov30
Quarters, FY2013
Feb28
May31
239,650
1,973
0
0
232,869
1,973
0
0
336,866
1,973
0
0
246,430
1,973
0
0
82,613
421,452
75,007
323,410
75,007
316,630
75,007
309,850
0
0
0
2,779
0
0
0
2,357
0
0
0
2,357
306,750
235,000
309,529
226,089
1,973
0
0
Aug31
2013
219,309
1,973
0
0
127,260
1,973
0
0
75,007
303,069
75,007
296,289
71,581
200,814
0
0
0
2,357
0
0
0
2,357
0
0
0
2,357
0
0
0
2,631
235,000
235,000
235,000
235,000
235,000
237,357
237,357
237,357
237,357
237,357
237,631
26
240,906
(210,302)
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)
30,630
13,570
44,199
353,728
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
416,700
319,080
196,210
67,724
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 days
0 days
0 days
0 days
0 days
0 days
0 days
Fiscal Years:
2015
2014
2016
2017
101,214
1,973
0
0
73,496
1,973
0
0
36,748
1,973
0
0
0
1,973
0
0
68,300
171,486
64,867
140,336
64,867
103,588
64,867
66,840
0
0
0
3,023
0
0
0
3,228
0
0
0
0
3,228
3,228
235,000
235,000
235,000
235,000
238,023
238,228
238,228
238,228
26
260,082
(351,390)
26
266,474
(394,101)
26
266,474
(430,849)
26
266,474
(467,597)
(91,283)
24,746
(66,537)
171,486
(127,602)
29,709
(97,892)
140,336
(164,350)
29,709
(134,640)
103,588
(201,097)
29,709
(171,388)
66,840
166,491
135,135
98,387
61,639
0.00x
0 days
0.00x
0 days
0.00x
0 days
0.00x
0 days
(plug to Balance)
0 days
0 days
0 days
0 days

Net Earnings
Change in Assets:
Accounts receivable
Inventories
Deferred revenue
Acquisition
Change in Revolver
Dividends
Fiscal Years:
2008
2009
(37,993)
0
668
(88,986)
0
1,544
2,302
0
55,667
0
0
0
0
2,159
(35,023)
0
(836)
(30,452)
148
858
(91,166)
(2,379)
0
(2,698)
(92,687)
(2,550)
0
0
(127,710)
556,954
429,244
(33,002)
429,244
396,242
Check
668
2,212
Fiscal Years:
2010
(31,639)
0
2,063
(11,870)
0
0
0
0
6,223
0
(2,362)
(37,585)
(1,442)
2011
2012
Nov30
Quarters, FY2013
Feb28
May31
(29,506)
0
2,678
(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
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
8,066
0
0
0
7,606
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(634)
(19,396)
552
0
(421)
(20,182)
0
0
(7,367)
0
0
(7,367)
0
0
(7,367)
0
0
(7,367)
(927)
0
0
(3,645)
(479)
0
0
(1,500)
(100)
0
0
(1,500)
(6,014)
(1,426)
(1,600)
0
0
0
0
0
(71,750)
0
0
0
0
0
0
0
0
(71,750)
(43,598)
396,242
352,644
(20,823)
352,644
331,821
(93,532)
331,821
238,289
(7,367)
238,289
230,922
(7,367)
230,922
223,554
(7,367)
223,554
216,187
(7,367)
216,187
208,820
4,275
5,045
8,141
8,728
9,315
9,902
10,488
Fiscal Years:
2015
2013
2014
(35,519)
0
2,750
(37,143)
0
2,500
(37,888)
0
2,000
2016
2017
(37,888)
0
2,000
(37,888)
0
2,000
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
0
0
0
0
273
(29,069)
0
392
(30,970)
0
205
(32,250)
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)
0
0
(35,888)
0
0
0
0
0
0
0
0
0
0
(30,569)
208,820
178,252
(31,970)
178,252
146,281
(33,250)
146,281
113,031
(35,888)
113,031
77,143
(35,888)
77,143
41,255
(50,991)
(45,068)
(39,535)
(40,395)
(41,255)

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Note: All except the Rollup (black) tabs are protected; please contact scott@Ex

ase contact scott@ExcelModels.com to unlock

he business. The tabs are color-coded as follows:

ogy, calculations of the two Valuations, and summary exhibits

Copyright 2016, Scott Beber, ExcelModels.c

Four Approachs to measuring Mar

Approachs to measuring Market Value

Discounted Cash Flow

Option pricing models

Period cash flows

WSJ, Yahoo! Finance

Average of peers' P/E ratios

WSJ, Yahoo! Finance

WSJ, Yahoo! Finance

Companies with stable

Companies whose assets

Easily to obtain; "quick & dirty"

Does not capture true intrinsic value

In reality, the most commonly-used method

Precise comparables rarely exist

Accurate in short term

Does not account for growth, strategy, change

Allow for management to quickly assimilate,

Can easily lead to overvaluation when options

Discounted Cash Flow Valuation

Factors that affect V:

Provides powerful check on DCF method

Basis of comparison for both Valuations

Company Weighted Average Cost of Capital

Company Cost of Equity

Peer groups for each Business Unit

Weighted Average Cost of Capital

Weighted Avg Cost of Capital (WACC

Determine market Over/Under Valuation

Survey: Global Fund Managers

Average Implied premium

Implied premium adj. for T.Bond rate and term

Company Market Comparables Va

Cost of Debt (from Company financials)

2012 2013 (F) 3 yr avg

d Average Cost of Capital

d Avg Cost of Capital (WACC)

the United States in 2012: (Aswath Damodaran- http://pages.stern.nyu.edu/~adamodar/)

Using regression of implied premium on T.Bond rate

Company Market Comparables Valuation

Company Bus. Units

Enterprise Value is equal to:

Market Comp Enterprise Value:

Company DCF Valuation

Apply multiple in $ mil

Discounted Cash Flows ($ mil):

Company's Equity Value ($ mil), per:

Company's Market Value of Common Equity:

Common Stock Over / (Under) Valuation:

Market Comparables model

Summary of Findings (pt.

Business Unit contributio

quity Value ($ mil), per:

Market Value of Common Equity:

hares Outstanding (mil)

ck Over / (Under) Valuation:

Enterprise Value ($ mil):

ary of Findings (pt. 1)

Business Unit contribution to Enterprise Value ($ mil)