Financial Data on Companies Comparable to Digital Everywhere

($ millions)
In the Sky
1994

1995

1996

We Are Good, Ltd.

1997

1994

1995

1996

Fun in a Can, Co.

1997

1994

1995

1996

HELP, Inc.
1997

1994

1995

1996

Digital Everywhere
1997

Sales
SG&A
EBITDA
NI

79.34
18.58
7.30
(1.05)

74.79
17.67
6.44
1.54

59.39
14.59
2.38
4.54

54.86
13.97
2.76
5.27

154.13 188.37
19.28
20.92
18.85
26.24
(13.70)
3.21

234.68
23.62
43.22
16.09

312.29
33.44
58.67
21.75

17.32
2.59
0.19
(0.38)

17.96
2.72
0.18
(0.51)

17.10
2.35
0.73
1.47

18.90
2.16
1.81
3.84

72.39

82.57

80.58

75.35

6.66
2.96

7.65
3.20

8.17
3.80

Tot Assets
Cap Ex
CA
CL
Debt
NW

77.90
1.95
51.47
15.73
4.88
15.73

72.37
0.37
45.86
14.70
5.15
13.82

62.99
0.63
38.69
18.76
6.28
18.03

54.95
0.34
34.01
42.54
7.18
12.10

152.21
176.73
57.69
53.58
2.66
57.32

213.65
76.39
118.54
59.42
7.18
132.20

298.32
21.81
159.93
60.56
6.80
211.19

7.62
0.52
3.89
1.83
0.62
2.98

7.31
0.40
3.98
2.23
0.66
2.34

7.11
0.28
4.23
3.13
0.67
2.64

7.33
0.28
4.79
2.95
0.71
3.41

40.66
5.22
22.54
5.46
0.90
32.82

45.91
3.45
28.50
8.92
0.71
34.53

21.23

18.63

19.51

20.30

18.23

11.81

18.98

P/E
Market price
Price to Sales
Price to earnings
Price to assets
Price to BV

NA

98
2003
98
2003
98
2003
98
2003

102.82
15.93
112.45
8.88
262.51
7.63
106.84
24.95
414.12

NA

149.98
117.63
70.22
43.84
6.01
67.36
40.00

41.05

39.87
867.17
23.60
166.61
18.14
536.45
11.85
165.98
12.06
200.11

NA

NA

70.00
31.48
222.23
8.29
245.28
38.94
545.32
60.27
1000.47

1998

2003

4.27
1.50

8.50
3.50
0.70
0.46

60.00
7.80
20.70
13.46

49.98
3.05
27.59
10.63
0.37
36.50

46.85
3.33
22.08
6.41
0.17
37.56

4.08
0.91
3.20
1.14
0.00
2.94

57.10
0.20
52.60
8.37
0.00
48.74

23.21

19.38
29.07
3.28
23.15
8.82
260.76
2.53
35.43
2.27
37.72

Valuation of Digital Everywhere using the NPV Method

Exhibit 1: Pro Forma Projections for Digital Everywhere, Inc.
1997

1998

1999

2000

2001

2002

2003

Income Statement (in $000s)

Net Sales
COGS
Gross Profit

8,500
3,200
5,300

15,000
5,600
9,400

35,500
14,000
21,500

46,000
18,100
27,900

52,000
20,100
31,900

60,000
24,500
35,500

SG&A
R&D
EBIT

3,500
1,100
700

5,410
2,800
1,190

6,400
4,100
11,000

5,300
5,400
17,200

7,200
6,500
18,200

7,800
7,000
20,700

245
455

417
774

3,850
7,150

6,020
11,180

6,370
11,830

7,245
13,455

1998

1999

Income Tax (35%)

Net earnings

1997

2000

2001

2002

2003

Balance Sheet (in 000s)

Assets
Cash
Accounts Receivable
Inventories
Other
Total Current Assets

0
0
0
0
0

1,000
1,417
400
354
3,171

1,000
2,500
700
625
4,825

4,793
5,917
1,750
1,479
13,939

13,907
7,667
2,263
1,917
25,754

24,699
8,667
2,513
2,167
38,046

37,042
10,000
3,063
2,500
52,605

Net Fixed Assets

Total Assets

0
0

906
4,077

2,300
7,125

3,200
17,139

4,000
29,754

4,300
42,346

4,500
57,105

Accounts Payable
Accured Expenses
Current Liabilities

0
0
0

533
607
1,140

933
1,071
2,004

2,333
2,536
4,869

3,017
3,286
6,303

3,350
3,714
7,064

4,083
4,286
8,369

Net Worth

2,937

5,121

12,270

23,451

35,282

48,736

Total Liabilities &

Net Worth

4,077

7,125

17,139

29,754

42,346

57,105

Total Liabilities &

Shareholders' Equity

Comp Firms Beta

D/E
Unlevered Beta
ITS
1.45
0.5934
1.05
WAG
1.33
0.0322
1.30
FIC
1.22
0.2082
1.07
Help
1.23
0.0045
1.23
1.16
Tax Rate
35%

<==Proxy unlevered beta for Dig Eval

evered beta for Dig Eval