Академический Документы
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$ millions)
2010 2011 2012 2013 2014 [E]
Income statement
Net sales 289.9 304.1 316.4 329.0 345.5 Change in 25.57
COGS 259.4 273.1 284.1 295.3 310.4
Gross profit 30.5 31.0 32.3 33.7 35.1
Operating expenses 20.9 21.6 26.7 28.6 30.3
Depreciation and amortization 1.6 1.6 1.7 1.7 1.8
Operating profit 8.0 7.8 3.9 3.4 3.0
Interest expense 0.0 0.0 0.3 0.2 0.0
Income taxes 2.8 2.7 1.3 1.1 1.1
Net income 5.2 5.1 2.3 2.1 2.0
EPS $1.30 $1.27 $0.58 $0.52 $0.49
Dividend $0.20 $0.20 $0.20 $0.20 $0.20
Balance sheet
Cash 3.6 4.2 3.3 1.5 0.4
Accounts receivable 20.7 22.0 29.3 30.4 31.0
Other current assets 6.3 5.1 4.9 5.0 4.9
Current assets 30.6 31.3 37.5 36.9 36.3
Net PP&E 3.1 5.1 7.2 9.2 11.2
Investments and other assets 45.0 47.1 47.3 47.6 47.2
Total assets 78.7 83.6 92.0 93.7 94.6
Balance sheet
Cash 1.8 1.0 1.9 1.5 2.1
Accounts receivable 13.1 13.5 14.6 15.2 16.2
Other current assets 2.8 4.0 4.1 4.2 4.2
Current assets 17.7 18.5 20.6 20.9 22.5
Net PP&E 16.0 17.4 18.6 19.7 20.9
Investments and other assets 35.9 38.6 41.8 43.2 43.5
Total assets 69.6 74.5 81.1 83.8 86.8
Exhibit 3b Five-year Forecast of Broadway's Income and Cash Flow, 2015-2019 (U.S. $ millions)*
2015 2016 2017 2018 2019
Net sales 168.4 175.1 182.1 189.4 197.0
Operating profit 6.7 7.0 7.3 7.6 7.9
Interest expense 0.4 0.4 0.4 0.4 0.4
Net income 4.1 4.3 4.5 4.7 4.9
Depreciation and amortization 3.1 3.3 3.5 3.7 3.9
Change in net working capital 0.4 0.4 0.4 0.4 0.4
Capital expenditure 4.2 4.4 4.6 4.7 4.9
Total FCF 2.8 3.1 3.3 3.5 3.7
*Numbers in the exhibits are based on the assumption Broadway does not acquire Landmark.
Exhibit 4 Financial Data of Publically Traded Competitors, 2014 (U.S. $ millions)
Comparable Company 1 Comparable Company 2 Comparable Company 3
Sales $13,945.7 $6,417.2 $836.9
Net income $219.4 $123.8 $12.1
EPS $0.95 $1.84 $0.55
1
Exhibit TN-2 Valuation of Acquisition (expected scenario)
2015 2016 2017 2018 2019 2020 2021 2022 2023
WACC 8.36% 8.36% 8.36% 8.36% 8.36% 8.36% 8.36% 8.36% 8.36%
Revenue growth 5.0% 5.0% 5.0% 5.0% 5.0% 4.0% 4.0% 4.0% 4.0%
Operating margin 1.5% 2.0% 2.5% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%
Net WC 7.0% 6.5% 6.3% 6.0% 5.5% 5.5% 5.5% 5.5% 5.5%
Capex 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%
Revenue 362.78 380.91 399.96 419.96 440.96 458.59 476.94 496.01 515.86
Operating profits 5.44 7.62 10.00 12.60 13.23 13.76 14.31 14.88 15.48
Taxes 1.90 2.67 3.50 4.41 4.63 4.82 5.01 5.21 5.42
NOPAT 3.5 5.0 6.5 8.2 8.6 8.9 9.3 9.7 10.1
Depreciation and amortization 2.1 2.4 2.7 3.0 3.3 3.6 3.9 4.2 4.5
Net WC 25.4 24.8 25.2 25.2 24.3 25.2 26.2 27.3 28.4
Chg in net WC -0.2 -0.6 0.4 0.0 -0.9 1.0 1.0 1.0 1.1
Capex 3.6 3.8 4.0 4.2 4.4 4.6 4.8 5.0 5.2
FCF 2.2 4.2 4.8 7.0 8.4 7.0 7.4 7.9 8.3
Terminal value/WACC/growth 8.36% $160.2
PV (Landmark) $127.3
Valuation of Synergy to Broadway
Revenue growth -10.0% -10.0% 9.0% 9.0% 9.0% 4.5% 4.5% 4.5% 4.5%
Gross margin 8.5% 8.5% 9.0% 9.0% 9.5% 9.5% 9.5% 9.5% 9.5%
Operating expenses 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%
Capex 2.1% 2.1% 2.1% 2.1% 2.1% 2.1% 2.1% 2.1% 2.1%
Revenue 145.71 131.14 142.94 155.81 169.83 177.47 185.46 193.8 202.52
Gross profits 12.385 11.147 12.865 14.023 16.134 16.86 17.618 18.411 19.24
Operating profit 6.3712 5.224 6.5059 7.2064 8.8372 9.2103 9.6093 10.035 10.489
Taxes 2.2299 1.8284 2.2771 2.5223 3.093 3.2236 3.3633 3.5123 3.6713
NOPAT 4.1 3.4 4.2 4.7 5.7 6.0 6.2 6.5 6.8
Depreciation and amortization 3.1 3.3 3.5 3.7 3.9 4.1 4.3 4.5 4.7
Chg in net WC 0.4239 0.357 0.3712 0.3861 0.4015 0.4015 0.4015 0.4015 0.4015
Capex 3.0599 2.7539 3.0018 3.2719 3.5664 3.7269 3.8946 4.0699 4.253
FCF (with acquisition) 3.8 3.6 4.4 4.7 5.7 6.0 6.2 6.6 6.9
Terminal value (with acquisition) $154.4
PV (Broadway with acquisition) $120.5
FCF (without acquisition) 2.84 3.12 3.31 3.50 3.70 3.84 4%
Terminal value (without acquisition) $88.1
PV (Broadway without acquisition) $71.9
PV (improvements to Broadway) $48.6
Total PV of Landmark to Broadway $175.9
Growt $175.9 3.00% 3.25% 3.50% 3.75% 4.00% 4.25% 4.50% 4.75% 5.00%
WACC 8.00%
8.25%
8.50%
8.75%
9.00%
9.25%
9.50%
Perpetual Growth rate of Broadway changes and Landmark operating margin remains at 3%
margin $175.9 1.50% 1.75% 2.00% 2.25% 2.50% 2.75% 3.00% 3.25% 3.50%
WACC 8.00%
8.25%
8.50%
8.75%
9.00%
9.25%
9.50%
Perpetual operating margin at Landmark starting at 2018 (Broadway's perpetual growth rate at 4.5%)
Exhibit TN-3 Standalone Valuation of Landmark
2015 2016 2017 2018 2019 2020
WACC 8.36% 8.36% 8.36% 8.36% 8.36% 8.36%
Revenue growth 5.0% 5.0% 5.0% 5.0% 5.0% 4.0%
Operating margin 1.50% 1.50% 1.50% 1.50% 1.50% 1.50%
Net WC 7.40% 7.40% 7.40% 7.40% 7.40% 7.40%
Capex 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
Revenue 362.78 380.91 399.96 419.96 440.96 458.59
Operating profits 5.44 5.71 6.00 6.30 6.61 6.88
Taxes 1.90 2.00 2.10 2.20 2.32 2.41
NOPAT 3.54 3.71 3.90 4.09 4.30 4.47
Depreciation and amortization 2.1 2.4 2.7 3 3.3 3.6
Net WC 26.85 28.19 29.60 31.08 32.63 33.94
Chg in net WC 1.28 1.34 1.41 1.48 1.55 1.31
Capex 3.63 3.81 4.00 4.20 4.41 4.61
FCF 0.73 0.96 1.19 1.42 1.64 2.16
Terminal value $49.5
PV (Landmark) $37.7
WACC 8.36%
Exhibit TN-4 Valuation of Acquisition (pessimistic scenario)
2015 2016 2017 2018 2019 2020
WACC 8.36% 8.36% 8.36% 8.36% 8.36% 8.36%
Valuation of Landmark
Ratios
Revenue growth 5.0% 5.0% 5.0% 5.0% 5.0% 4.0%
Operating margin 1.5% 2.0% 2.5% 2.5% 2.5% 2.5%
Net WC 7.0% 7.0% 7.0% 6.5% 6.5% 6.5%
Capex 1.1% 1.1% 1.1% 1.1% 1.1% 1.1%
Revenue 362.775 380.91375 399.95944 419.95741 440.95528 458.59349
Operating profits 5.441625 7.618275 9.9989859 10.498935 11.023882 11.464837
Taxes 1.9045688 2.6663963 3.4996451 3.6746273 3.8583587 4.012693
NOPAT 3.5370563 4.9518788 6.4993409 6.8243079 7.1655233 7.4521442
Depreciation and amortization 2.1 2.4 2.7 3 3.3 3.6
Net WC 25.39425 26.663963 27.997161 27.297232 28.662093 29.808577
Chg in net WC (0.17) 1.2697125 1.3331981 -0.699929 1.3648616 1.1464837
Capex 3.990525 4.1900513 4.3995538 4.6195315 4.8505081 5.0445284
FCF 1.82 1.89 3.47 5.90 4.25 4.86
Terminal value $111.5
PV (Landmark) $87.8
4% 4% 4%
Exhibit TN-6 Restated Balance Sheets, December 31, 2014 after acquisition
Cash flow statement 2015 2016 2017 2018 2019 2020 2021 2022 2023 2015 2016 2017 2018 2019 2020
Net Income (after interest expense) 3.1 3.8 6.2 8.6 10.2 11.0 11.8 12.6 13.5 2.4 2.9 4.7 5.9 6.8 7.4
Non-cash expenses
Depreciation 5.2 5.7 6.2 6.7 7.2 7.7 8.2 8.7 9.2 5.2 5.7 6.2 6.7 7.2 7.7
Change in NWC 0.3 -0.3 0.8 0.4 -0.5 1.4 1.4 1.5 1.5 0.2 1.7 1.7 -0.3 1.8 1.5
CFO 8.1 9.8 11.6 14.9 18.0 17.3 18.6 19.9 21.2 7.4 7.0 9.2 12.9 12.2 13.5
Capex (6.7) (6.6) (7.0) (7.5) (8.0) (8.3) (8.7) (9.0) (9.4) (6.9) (6.6) (7.1) (7.5) (7.9) (8.2)
Net change in investments 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
CFI (6.7) (6.6) (7.0) (7.5) (8.0) (8.3) (8.7) (9.0) (9.4) (6.9) (6.6) (7.1) (7.5) (7.9) (8.2)
Change in borrowing (0.4) (0.4) (5.4) (5.4) (5.4) (5.4) (5.4) (5.4) (90.4) (0.4) (0.4) (5.4) (5.4) (5.4) (5.4)
Other changes to LT obligations 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
Dividend 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8
CFF (1.2) (1.2) (6.2) (6.2) (6.2) (6.2) (6.2) (6.2) (91.2) (1.2) (1.2) (6.2) (6.2) (6.2) (6.2)
Change in Cash 0.2 2.0 (1.6) 1.2 3.7 2.8 3.7 4.6 (79.4) (0.7) (0.9) (4.1) (0.8) (2.0) (1.0)
Beginning Cash 2.5 2.6 4.6 3.0 4.1 7.9 10.7 14.3 19.0 2.5 1.8 0.8 (3.3) (4.1) (6.0)
Ending Cash 2.6 4.6 3.0 4.1 7.9 10.7 14.3 19.0 (60.5) 1.8 0.8 (3.3) (4.1) (6.0) (7.0)
Balance sheet 2015 2016 2017 2018 2019 2020 2021 2022 2023 2015 2016 2017 2018 2019 2020
Cash 2.6 4.6 3.0 4.1 7.9 10.7 14.3 19.0 (60.5) 1.8 0.8 (3.3) (4.1) (6.0) (7.0)
Starting NWC 34 34.3 34.0 34.8 35.2 34.6 36.0 37.4 38.9 34.0 34.2 35.9 37.6 37.3 39.1
Change in NWC 0.3 -0.3 0.8 0.4 -0.5 1.4 1.4 1.5 1.5 0.2 1.7 1.7 -0.3 1.8 1.5
Ending NWC 34.3 34.0 34.8 35.2 34.6 36.0 37.4 38.9 40.4 34.2 35.9 37.6 37.3 39.1 40.6
Goodwill 69.16 69.16 69.16 69.16 69.16 69.16 69.16 69.16 69.16 69.16 69.16 69.16 69.16 69.16 69.16
Net PP&E 33.5 34.4 35.2 35.9 36.7 37.3 37.8 38.1 38.3 33.7 34.6 35.5 36.3 37.0 37.6
Investments and other assets 90.7 90.7 90.7 90.7 90.7 90.7 90.7 90.7 90.7 90.7 90.7 90.7 90.7 90.7 90.7
Total assets less current liabilities 230.2 232.8 232.8 235.1 239.1 243.8 249.4 255.8 178.1 229.5 231.2 229.7 229.4 229.9 231.1
Long-term debt 127.5 127.1 121.7 116.3 110.9 105.5 100.1 94.7 4.3 127.5 127.1 121.7 116.3 110.9 105.5
Accrued expenses and deferred taxes 28.5 28.5 28.5 28.5 28.5 28.5 28.5 28.5 28.5 28.5 28.5 28.5 28.5 28.5 28.5
Other non-current liabilities 28.8 28.8 28.8 28.8 28.8 28.8 28.8 28.8 28.8 28.8 28.8 28.8 28.8 28.8 28.8
Total non-current liabilities 184.8 184.4 179 173.6 168.2 162.8 157.4 152 61.6 184.8 184.4 179 173.6 168.2 162.8
Shareholders 'equity 45.4 48.4 53.8 61.5 70.9 81.0 92.0 103.8 116.5 44.7 46.8 50.7 55.8 61.7 68.3
Total non-current liabilities and equity 230.2 232.8 232.8 235.1 239.1 243.8 249.4 255.8 178.1 229.5 231.2 229.7 229.4 229.9 231.1
Debt-related Ratios 2015 2016 2017 2018 2019 2020 2021 2022 2023 2015 2016 2017 2018 2019 2020
Interest coverage ratio 1.69 1.85 2.38 2.98 3.47 3.79 4.15 4.55 5.03 1.54 1.65 2.05 2.36 2.63 2.85
Debt-equity ratio 2.81 2.62 2.26 1.89 1.56 1.30 1.09 0.91 0.04 2.85 2.71 2.40 2.08 1.80 1.55
Debt-capitalization ratio 74% 72% 69% 65% 61% 57% 52% 48% 4% 74% 73% 71% 68% 64% 61%
Cash flow to debt ratio 0.06 0.08 0.10 0.13 0.16 0.16 0.19 0.21 4.94 0.06 0.05 0.08 0.11 0.11 0.13
ic scenario
2021 2022 2023
636.3 661.8 688.2
18.0 18.7 19.4
6.3 6.5 6.8
11.7 12.1 12.6
8.2 8.7 9.2
1.6 1.6 1.7
8.6 8.9 9.2
9.8 10.3 10.9
0.3 0.3 0.3
5.5 5.2 5.0
3.783 3.592 3.402
5.4 5.4 90.4
(3.9) (2.5) (85.5)
Cash flow statement 2015 2016 2017 2018 2019 2020 2015 2016
Net Income (after interest expense) 5.5 6.2 8.6 10.7 12.2 12.8 4.8 5.3
Non-cash expenses
Depreciation 5.2 5.7 6.2 6.7 7.2 7.7 5.2 5.7
Change in NWC 0.3 (0.3) 0.8 0.4 (0.5) 1.4 0.2 1.7
CFO 10.4 12.1 13.9 17.0 19.9 19.1 9.8 9.3
Capex (6.7) (6.6) (7.0) (7.5) (8.0) (8.3) (6.9) (6.6)
Net change in investments 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
CFI (6.7) (6.6) (7.0) (7.5) (8.0) (8.3) (6.9) (6.6)
Change in borrowing (0.4) (0.4) (0.4) (0.4) (0.4) (60.4) (0.4) (0.4)
Other changes to LT obligations 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Dividend 0.84 0.84 0.84 0.84 0.84 0.84 0.84 0.84
CFF (1.2) (1.2) (1.2) (1.2) (1.2) (61.2) (1.2) (1.2)
Change in Cash 2.5 4.3 5.7 8.3 10.7 (50.4) 1.6 1.4
Beginning Cash 2.5 5.0 9.3 15.0 23.3 34.1 2.5 4.1
Ending Cash 5.0 9.3 15.0 23.3 34.1 (16.4) 4.1 5.5
Balance sheet 2015 2016 2017 2018 2019 2020 2015 2016
Cash 5.0 9.3 15.0 23.3 34.1 (16.4) 4.1 5.5
Starting NWC 34 34.3 34.0 34.8 35.2 34.6 36.0 36.2
Change in NWC 0.3 (0.3) 0.8 0.4 (0.5) 1.4 0.2 1.7
Ending NWC 34.3 34.0 34.8 35.2 34.6 36.0 36.2 37.9
Goodwill 69.16 69.16 69.16 69.16 69.16 69.16 69.16 69.16
Net PP&E 33.5 34.4 35.2 35.9 36.7 37.3 39.0 40.0
Investments and other assets 90.7 90.7 90.7 90.7 90.7 90.7 90.7 90.7
Total assets less current liabilities 232.6 237.5 244.8 254.3 265.3 216.8 239.2 243.2
Long-term debt 67.5 67.1 66.7 66.3 65.9 5.5 67.5 67.1
Accrued expenses and deferred taxes 28.5 28.5 28.5 28.5 28.5 28.5 28.5 28.5
Other non-current liabilities 28.8 28.8 28.8 28.8 28.8 28.8 28.8 28.8
Total non-current liabilities 124.8 124.4 124 123.6 123.2 62.8 124.8 124.4
Shareholders 'equity 107.8 113.1 120.8 130.7 142.1 154.0 107.1 111.5
Total non-current liabilities and equity 232.6 237.5 244.8 254.3 265.3 216.8 231.9 235.9
Debt-related Ratios 2015 2016 2017 2018 2019 2020 2015 2016
Interest coverage ratio 3.5 3.8 4.9 6.0 6.7 7.0 3.2 3.4
Debt-equity ratio 0.6 0.6 0.6 0.5 0.5 0.0 0.6 0.6
Capitalization ratio 0.4 0.4 0.4 0.3 0.3 0.0 0.4 0.4
Cash flow to debt ratio 0.2 0.2 0.2 0.3 0.3 3.5 0.1 0.1
Pessimistic scenario
2017 2018 2019 2020
526.3 556.4 588.3 611.1
14.2 15.8 16.8 17.4
5.0 5.5 5.9 6.1
9.2 10.3 11.0 11.3
6.2 6.7 7.2 7.7
1.7 (0.3) 1.8 1.5
7.1 7.5 7.9 8.2
6.6 9.8 8.4 9.2
0.3 0.3 0.3 0.3
3 3 3 3
2.17 2.16 2.15 2.13
0.4 0.4 0.4 60.4
8.8 16.0 21.9 (31.4)
$ 11.79
% Surrendered to the Investors
30% 35% 40%