Valuation Statistic s

Company Name
Polaris Industries Inc.
HARLEY-DAVIDSON, INC.
Hasbro, Inc.
MATTEL, INC.
THOR INDUSTRIES, INC.
BRP Inc.

Capitalization
Enterprise Value / Enterprise Value /
Equity Enterprise
Revenue
EBITDA
Value
Value
LTM
FY1
LTM
FY1
$ 10,391 $ 10,450
2.4 x
2.3 x
13.1 x
12.4 x
14,150
18,414
3.0 x
3.3 x
NM
12.2 x
7,287
8,517
2.0 x
2.0 x
NM
10.4 x
10,731
12,589
2.0 x
2.0 x
10.7 x
11.4 x
2,926
2,636
0.7 x
0.7 x
9.5 x
7.8 x
2,748
3,576
1.2 x
1.1 x
15.5 x
9.3 x

Medi a n
Mea n

$ 8 ,8 3 9
$ 8 ,0 3 9

$ 9 ,4 8 3
$ 9 ,3 6 4

2 .0 x
1 .9 x

2 .0 x
1 .9 x

1 1 .9 x
1 2 .2 x

1 0 .9 x
1 0 .6 x

1 8 .1 x
2 2 .8 x

1 6 .4 x
1 7 .0 x

4 .0 x
5 .4 x

1 1 .6 x
1 0 .6 x

1 .8 %
2 .1 %

Brunswic k Corporation

$ 4 ,4 1 7

$ 4 ,2 5 0

1 .1 x

1 .1 x

1 0 .3 x

9 .6 x

5 .3 x

1 5 .7 x

3 .1 x

4 .7 x

1 .1 %

(4 5 %)

(4 4 %)

(1 4 %)

(1 1 %)

(7 1 %)

(4 %)

(2 2 %)

(5 9 %)

P remium (Disc ount to P eers Median)

P / E Multiple
LTM
FY1
24.3 x
23.0 x
16.7 x
16.8 x
19.4 x
17.5 x
15.1 x
15.1 x
16.3 x
13.7 x
45.0 x
16.1 x

Proj ected Proj ected

EBITDA
G rowth

P / BV Multiple
Di vi dend Revenue
Total
Tangible
Y i el d
G rowth
12.1 x
17.4 x
1.2%
19.3%
4.0 x
4.3 x
1.7%
8.2%
4.8 x
14.9 x
3.0%
4.3%
3.4 x
11.6 x
4.8%
(7.3%)
2.9 x
4.9 x
2.0%
8.8%
NM
NM
0.0%
12.1%

EBITDA Ma rg i n
LTM
FY1

(6.8%)
12.8%
(3.0%)

18.5%
19.2%
7.9%
7.6%

18.9%
26.9%
18.8%
17.8%
8.6%
11.8%

8 .5 %
5 .3 %

(3 .0 %)
(4 .9 %)

1 3 .2 %
7 .8 %

1 8 .3 %
1 3 .3 %

(0 .4 %)

1 9 .4 %

1 0 .9 %

1 1 .5 %

Analyst Projections
Historical average
used for calculation
of 2017E and 2018E

Revenues
Marine Engines
Boats
Marine Eliminations
Total Marine
Fitness
Bowling & Billiards
Total

$1,905
1,008
-203
$2,710

$1,989
1,003
-232
$2,759

$635
352
$ 3 ,6 9 7

$636
322
$ 3 ,7 1 8

$2,088 $ 2,190 $ 2,385 $

1,032
1,117
1,240
-236
-256
-268
$2,884
$3,051
$3,357

2,515 $ 2,675 $
1,340
1,412
-277
-297
$3,578
$3,790

2,845
1,489
-318
$4,015

4.4%
-0.5%
14.0%
1.8%

5.0%
2.9%
2.0%
4.5%

4.9%
8.2%
8.3%
5.8%

8.9%
11.1%
4.7%
10.0%

5.5%
8.1%
3.5%
6.6%

6.4%
5.4%
7.0%
5.9%

6.4%
5.4%
7.0%
5.9%

Fitness
Bowling & Billiards
Total

10.0%
-0.9%
1 .3 %

12.6%
-100.0%
-3 .2 %

7.0%
NA
6 .0 %

7.0%
NA
9 .4 %

6.0%
NA
6 .5 %

10.0%
NA
4.6%

10.0%
NA
4.6%
Optimistic Projections

Conservative Projections

Revenues
Marine Engines
Boats
Marine Eliminations
Total Marine
Fitness
Bowling & Billiards
Total

$1,905
1,008
-203
$2,710

$1,989
1,003
-232
$2,759

$635
352
$ 3 ,6 9 7

$636
322
$ 3 ,7 1 8

$2,088 $ 2,193 $ 2,302 $

1,032
1,104
1,170
-236
-251
-263
$2,884
$3,046
$3,210

2,394 $ 2,466 $
1,229
1,278
-274
-282
$3,350
$3,462

2,540
1,317
-287
$3,569

4.4%
-0.5%
14.0%
1.8%

5.0%
2.9%
2.0%
4.5%

5.0%
7.0%
6.0%
5.8%

5.0%
6.0%
5.0%
10.0%

4.0%
5.0%
4.0%
6.6%

3.0%
4.0%
3.0%
5.9%

3.0%
3.0%
2.0%
5.9%

Fitness
Bowling & Billiards
Total

10.0%
-0.9%
1 .3 %

12.6%
-100.0%
-3 .2 %

5.0%
NA
6 .0 %

5.0%
NA
9 .4 %

5.0%
NA
6 .5 %

5.0%
NA
4.6%

5.0%
NA
4.6%

17.2%
0.6%
7 .8 %

$1,905
1,008
-203
$2,710

$1,989
1,003
-232
$2,759

$635
352
$ 3 ,6 9 7

$636
322
$ 3 ,7 1 8

P erc entage Change %

Marine Engines
9.4%
Boats
2.6%
Marine Eliminations
9.7%
Total Marine
6.8%

4.4%
-0.5%
14.0%
1.8%

5.0%
2.9%
2.0%
4.5%

7.0%
9.0%
9.0%
5.8%

6.0%
8.0%
8.0%
10.0%

5.0%
8.0%
7.0%
6.6%

4.0%
7.0%
6.0%
5.9%

3.0%
7.0%
5.0%
5.9%

Fitness
Bowling & Billiards
Total

17.2%
0.6%
7 .8 %

10.0%
-0.9%
1 .3 %

12.6%
-100.0%
-3 .2 %

7.0%
NA
6 .0 %

7.0%
NA
9 .4 %

7.0%
NA
6 .5 %

8.0%
NA
4.6%

9.0%
NA
4.6%

$1,905
1,008
-203
$2,710

$1,989
1,003
-232
$2,759

$635
352
$ 3 ,6 9 7

$636
322
$ 3 ,7 1 8

P erc entage Change %

Marine Engines
9.4%
Boats
2.6%
Marine Eliminations
9.7%
Total Marine
6.8%

4.4%
-0.5%
14.0%
1.8%

5.0%
2.9%
2.0%
4.5%

7.0%
11.0%
10.0%
5.8%

7.0%
10.0%
9.0%
10.0%

7.0%
9.0%
8.0%
6.6%

7.0%
8.0%
7.0%
5.9%

7.0%
8.0%
6.0%
5.9%

Fitness
Bowling & Billiards
Total

10.0%
-0.9%
1 .3 %

12.6%
-100.0%
-3 .2 %

7.0%
NA
6 .0 %

8.0%
NA
9 .4 %

9.0%
NA
6 .5 %

10.0%
NA
4.6%

11.0%
NA
4.6%

Revenues
Marine Engines
Boats
Marine Eliminations
Total Marine
Fitness
Bowling & Billiards
Total

$716 $
752 $
789 $
829 $
870 $
914
0
0
0
0
0
0
$ 3 ,6 0 0
$ 3 ,7 9 8
$ 3 ,9 9 9
$ 4 ,1 7 8
$ 4 ,3 3 3
$ 4 ,4 8 3

P erc entage Change %

Marine Engines
9.4%
Boats
2.6%
Marine Eliminations
9.7%
Total Marine
6.8%

Revenues
Marine Engines
Boats
Marine Eliminations
Total Marine
Fitness
Bowling & Billiards
Total

$716 $
766 $
820 $
869 $
956 $
1,051
0
0
0
0
0
0
$ 3 ,6 0 0
$ 3 ,8 1 7
$ 4 ,1 7 7
$ 4 ,4 4 7
$ 4 ,7 4 6
$ 5 ,0 6 6

P erc entage Change %

Marine Engines
9.4%
Boats
2.6%
Marine Eliminations
9.7%
Total Marine
6.8%
17.2%
0.6%
7 .8 %

Base Projections

Summary of Projections

Analysts
Conservative
Base
Optimistic

17.2%
0.6%
7 .8 %

$2,088 $ 2,234 $ 2,368 $

1,032
1,125
1,215
-236
-258
-278
$2,884
$3,101
$3,305

2,487 $ 2,586 $
1,312
1,404
-298
-316
$3,501
$3,674

2,664
1,502
-331
$3,835

$716 $
766 $
820 $
877 $
947 $
1,033
0
0
0
0
0
0
$ 3 ,6 0 0
$ 3 ,8 6 8
$ 4 ,1 2 5
$ 4 ,3 7 8
$ 4 ,6 2 2
$ 4 ,8 6 7

$2,088 $ 2,234 $ 2,391 $

1,032
1,146
1,260
-236
-260
-283
$2,884
$3,120
$3,367

2,558 $ 2,737 $
1,373
1,483
-306
-328
$3,625
$3,893

2,929
1,602
-347
$4,183

$716 $
766 $
827 $
902 $
992 $
1,101
0
0
0
0
0
0
$ 3 ,6 0 0
$ 3 ,8 8 6
$ 4 ,1 9 5
$ 4 ,5 2 7
$ 4 ,8 8 5
$ 5 ,2 8 5

$3,817
$3,798
$ 3 ,8 6 8
$3,886

$4,177
$3,999
$ 4 ,1 2 5
$4,195

$4,447
$4,178
$ 4 ,3 7 8
$4,527

$4,746
$4,333
$ 4 ,6 2 2
$4,885

$5,066
$4,483
$ 4 ,8 6 7
$5,285

Discounted Cash Flow (DCF) Analysis

($ in millions, except per share data)
Brunswic k Corporation - Cash Flow P rojec tions

Base Projections

Revenues
Marine Engines
Boats
Marine Eliminations
Total Marine
Fitness
Bowling & Billiards
Total

Summary of Projections

FY2012
$ 3 ,7 1 8

$1,905
1,008
-203
$2,710

$1,989
1,003
-232
$2,759

$635
352
$ 3 ,6 9 7

$636
322
$ 3 ,7 1 8

FY2013
$ 3 ,8 8 8

FY 2014E
$ 3 ,8 6 8

Brunswic k - DCF Assumptions

FY 2015E
$ 4 ,1 2 5

FY 2016E
$ 4 ,3 7 8

$2,088 $ 2,234 $ 2,368 $

1,032
1,125
1,215
-236
-258
-278
$2,884
$3,101
$3,305

FY 2017E
$ 4 ,6 2 2

FY 2018E
$ 4 ,8 6 7

2,487 $ 2,586 $
1,312
1,404
-298
-316
$3,501
$3,674

2,664
1,502
-331
$3,835

$716 $
766 $
820 $
877 $
947 $
1,033
0
0
0
0
0
0
$ 3 ,6 0 0
$ 3 ,8 6 8
$ 4 ,1 2 5
$ 4 ,3 7 8
$ 4 ,6 2 2
$ 4 ,8 6 7

Analysts
Conservative
Base
Optimistic

$3,817
$3,798
$ 3 ,8 6 8
$3,886

$4,177
$3,999
$ 4 ,1 2 5
$4,195

$4,447
$4,178
$ 4 ,3 7 8
$4,527

$4,746
$4,333
$ 4 ,6 2 2
$4,885

$5,066
$4,483
$ 4 ,8 6 7
$5,285

EBITDA:
O perating Inc ome:

$208
$55

$340
$212

$380
$264

$413
$347

Less: Taxes
Tax Rate

($26)
18%

($20)
-1%

($15)
14%

$581
10%

($111)
34%

($137)
34%

($124)
35%

($131)
35%

($127)
35%

129
23

104.5
22.7

90
25.8

$88
($21)

$80
$0

$103
$0

$108
$0

$114
$0

$119
$0

Less: Inc rease in Working Capital:

Less: Capital Expenditures

$18
($57)

($78)
($90)

($79)
($115)

($66)
($148)

($37)
($140)

($1)
($154)

($40)
($154)

($40)
($154)

($40)
($154)

Unlevered Free Cash Flow

P resent Value of Free Cash Flow

$143

P lus: Deprec iation & Amortization

P lus: Restruc turing, Litigation, O ther

Normal Discount Period:

Mid-Year Discount:
Free Cash Flow Growth Rate:

152

171
$

$780
748
1.00
0.50

$
$

$
$

442
362

153
135

$
$

$
$

546
443

255
206

$
$

$
$

597
489

279
208

$
$

$
$

646
532

321
220

$
$

$
$

678
559

357
225

2.00
1.50

3.00
2.50

4.00
3.50

5.00
4.50

6.00
5.50

(80.4%)

66.2%

9.4%

15.3%

11.0%

Brunswic k - Net P resent Value Sensitivity - Terminal Growth Rates

Disc ount Rate
$ 53.90
8.0%
8.5%
9 .0 %
9.5%
10.0%
2.0%
$ 53.62 $
50.06 $ 4 7 .0 0 $
44.35 $ 42.04
2.5%
$ 56.88 $
52.76 $ 4 9 .2 7 $
46.28 $ 43.69
3.0%
$ 6 0 .7 9 $ 5 5 .9 5 $ 5 1 .9 1 $ 4 8 .5 0 $ 4 5 .5 7
3.5%
$ 65.57 $
59.78 $ 5 5 .0 4 $
51.09 $ 47.75
4.0%
$ 71.54 $
64.46 $ 5 8 .7 9 $
54.15 $ 50.29

Ter minal
Gr owth Rate

Revenue:

FY2011
$ 3 ,6 7 0

Brunswic k - Net P resent Value Sensitivity - Terminal EBITDA Multiples

Disc ount Rate

Ter minal
EBITDA
Multiple

FY2010
$ 3 ,4 0 3

$ 63.82
9.0 x
9.5 x
10.0 x
10.5 x
11.0 x

$
$
$
$
$

8.0%
61.32
63.63
6 5 .9 4
68.25
70.56

$
$
$
$
$

8.5%
60.01
62.26
6 4 .5 0
66.75
68.99

$
$
$
$
$

9 .0 %
5 8 .7 4
6 0 .9 2
6 3 .1 1
6 5 .2 9
6 7 .4 8

$
$
$
$
$

9.5%
57.50
59.63
6 1 .7 5
63.88
66.00

$
$
$
$
$

10.0%
56.31
58.37
6 0 .4 4
62.51
64.58

SOTP Valuation
Segment
Marine Engines
Boat
Fitness
Bowling and Billiards

Valuation
Method
2014 Revenue
2014 Revenue
2014 Revenue
2014 Revenue

Metric
$ 2,234.27
1,124.88
766.12
0

Multiple
Low
High
1.7 x
1.8 x
1.7 x
1.8 x
1.4 x
1.6 x
NM
NM
Total Firm Value
Less: Net Debt
Add: Cash & Equivalents
Total Equity Value
Total Diluted Shares O/S
Implied Price Per Share
Current Price:
Premium (Discount)

Enterprise Value
Low
High
3,898.8
3,982.6
1,906.7
1,994.0
1,080.2
1,207.4
NA
NA
6,885.7
456
624
7,053.7
93
$75.85
47.72
(37%)

7,184.0
456
624
7,352.0
93
$79.05
47.72
(40%)

Precedent Transaction Analysis

Discounted Cash Flow Analysis

Public Company Comparables

60

16M

55

14M

50

12M

45

10M

40

8M

35

6M

30

4M

25

2M

20
Nov-12

0M

Jan-13

Mar-13

May-13

Jul-13

Sep-13

Nov-13

Jan-14

Mar-14

May-14

Jul-14

Sep-14

55

100%

80%

50

60%

45

40%

40

20%

35

0%

30
Nov-13

Jan-14

Mar-14
Buy

Hold

May-14
Sell

Jul-14
Price

Sep-14
Target Price

Latest Holders
Holder
T. Row e Price Group, Inc. (NasdaqGS:TROW)
BlackRock, Inc. (NYSE:BLK)
Fidelity Investments
The Vanguard Group, Inc.
Robeco Group N.V.
WEDGE Capital Management L.L.P.
State Street Global Advisors, Inc.
Invesco Ltd. (NYSE:IVZ)
Daruma Capital Management, LLC
Barrow , Hanley, Mew hinney & Strauss, Inc.
1832 Asset Management L.P.
Chartw ell Investment Partners, L.P.
Franklin Resources Inc. (NYSE:BEN)
Northern Trust Global Investments
Pyramis Global Advisors, LLC
Schroder Investment Management Limited
Goldman Sachs Asset Management, L.P.
Teachers Insurance and Annuity Association College Retirement Equities
Fund

Com m on Stock Equivalent Held

% Of CSO

Market Value (USD in m m )

7,358,111
7,174,420
5,944,993
5,647,282
4,902,264
3,327,695
3,110,169
2,753,893
1,980,032
1,919,159
1,757,719
1,657,209
1,560,300
1,500,927
1,243,750
1,157,600
994,665
952,071

7.916
7.718
6.396
6.075
5.274
3.58
3.346
2.963
2.13
2.065
1.891
1.783
1.679
1.615
1.338
1.245
1.07
1.024

351.1
342.4
283.7
269.5
233.9
158.8
148.4
131.4
94.5
91.6
83.9
79.1
74.5
71.6
59.4
55.2
47.5
45.4

Position Date
Sep-30-2014
Sep-30-2014
Sep-30-2014
Sep-30-2014
Sep-30-2014
Sep-30-2014
Sep-30-2014
Sep-30-2014
Sep-30-2014
Sep-30-2014
Sep-30-2014
Sep-30-2014
Sep-30-2014
Sep-30-2014
Sep-30-2014
Sep-30-2014
Sep-30-2014
Sep-30-2014

Deal Type
M&A
M&A
M&A
M&A
M&A
M&A
M&A
M&A
M&A
M&A
M&A
M&A
M&A
INV
M&A
M&A
M&A
INV
M&A
M&A
M&A
INV
SPIN
M&A
INV
M&A
M&A
M&A
INV
M&A
M&A
INV
INV
M&A
M&A
INV
INV
M&A
M&A
M&A
M&A
M&A
M&A
M&A
M&A
M&A
M&A
M&A
M&A
M&A
INV
INV
M&A
M&A
M&A

Announc e Date
5/29/2013
5/21/2012
11/12/2012
6/23/2014
1/6/2014
6/18/2012
10/23/2012
5/21/2013
7/29/2014
7/17/2013
8/26/2013
9/16/2013
4/14/2014
6/25/2014
11/5/2012
6/30/2013
2/28/2014
3/18/2014
12/15/2013
4/7/2014
1/22/2014
10/11/2013
2/1/2013
10/20/2014
9/27/2013
11/26/2012
7/24/2014
10/6/2014
11/6/2013
5/9/2014
5/15/2013
5/2/2013
4/30/2014
9/30/2013
2/10/2014
10/27/2014
8/21/2013
7/5/2013
2/19/2013
5/9/2013
6/19/2013
5/28/2014
10/1/2013
8/7/2013
2/19/2014
1/7/2013
9/18/2014
2/11/2013
8/23/2013
12/4/2013
2/5/2014
7/14/2014
8/25/2014
6/25/2014
11/10/2014

Target Name
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Masco Framing Corp
Eagle Ford Shale oil & gas leases
Certain Roadbuilding assets and operations
Property Claims Services Inc
Footman James UK Ltd
DataMentors Holdings Inc
CorAmerica Capital LLC
Sun Catalytix Corp
Retirement services recordkeeping business
xpient Solutions LLC

Ac quirer Name
Seller Name
Announc ed Total Value (mil.)
P ayment Type
TV/EBITDA
WH Group Ltd
6955.21 Cash
9.35
DaVita HealthCare Partners Inc
4459.19 Cash and Stock
Leucadia National Corp
2639.39 Stock
2.65
Harbinger Group Inc
992 Cash
13.07
Convergys Corp
Ayala Corp,Ares Management LLC (Fund: Ares Corporate Opportunities Fund II LP),Providence Equity Partners Inc
820(Fund:
Cash Providence Equity Partners VI LP)
Diamond Resorts Parent LLC
777.89 Cash
23.66
Starwood Capital Group LLC
Kimco Realty Corp
735 Cash
Philip Morris International Inc
Grupo Carso SAB de CV
700 Cash
XPO Logistics Inc
615 Undisclosed
Resolution Life Holdings Inc
Allstate Corp/The
600 Undisclosed
Pritzker Organization
534.82 Cash
3.68
Omega Healthcare Investors Inc
Ark Holding Co
525 Cash
Koppers Holdings Inc
Osmose Holdings Inc
460 Cash
Electricity Generating PCL
AES Corp/VA
453 Cash
Harbinger Group Inc
EXCO Resources Inc
372.5 Cash
Hess Corp
AT Williams Oil Co
290 Cash
Homefed Corp
Leucadia National Corp
277.22 Stock
Leucadia National Corp
253 Cash
2.75
Twin River Worldwide Holdings Inc
Leucadia National Corp
250 Cash
Saltchuk Resources Inc
AGL Resources Inc
220 Cash
Al Faisal Holding Co
Starwood Hotels & Resorts Worldwide Inc
213 Cash
American Express Co,Alibaba Group Holding Ltd,Kynetic LLC
206 Cash
Shareholders
Leucadia National Corp
201.46
MasTec Inc
Exchange Income Corp
199 Cash
Leucadia National Corp
139.78 Cash
1.16
Curtiss-Wright Corp
135.1 Cash
Gray Television Inc
SJL Holdings LLC
128 Cash
Harbinger Group Inc
EXCO Resources Inc
118.75 Cash
National Bank Holdings Corp
100.3 Cash
Koch Industries Inc
Agrium Inc
85 Cash
Ares Commercial Real Estate Corp
Alliant Co LLC/The
62.69 Cash and Stock
Oracle Corp,Private Investor,Otsuka Holdings Co Ltd,Novartis BioVentures Ltd (Fund: Novartis Option Fund),Sino Portfolio International Ltd
62.5 Cash
Total SA,Private Investor,Khosla Ventures LLC,KLP Enterprises LLC
35 Cash
Bank of New York Mellon Corp/The,Harbinger Group Inc,Tokarz Investments LLC,TTG Apparel LLC,Arsenal Group LLC
24.76 Cash
UGM Holdings Pty Ltd
Arch Coal Inc
21 Cash
Wells Fargo & Co,Investor Group,Inmobiliaria Carso SA de CV
20 Cash
Coca-Cola Enterprises Inc,Menlo Ventures,Google Ventures,SV Angel,Founders Fund Management LLC (Fund: FF Angel LLC),Groupe Cirque du Soleil Inc,Tomorrow Ventures LLC,Lerer Hippeau Ventures Management
12 Cash LLC (Fund: Lerer Ventures II LP)
Garvey Group LLC/The
Schawk Inc
10.2 Cash and Debt
White Mountains Insurance Group Ltd
Leucadia National Corp
3.2 Cash
KeyCorp
Leucadia National Corp
N/A
Cash
Sequana SA
Xerox Corp
N/A
Cash
Leucadia National Corp
N/A
Undisclosed
Bristol Bay Native Corp
Nabors Industries Ltd
N/A
Undisclosed
CSX Corp
Ingram Industries Inc
N/A
Cash
Atlas Holdings LLC
Johnson Controls Inc
N/A
Cash
Atlas Holdings LLC
Masco Corp
N/A
Undisclosed
Leucadia National Corp
N/A
Cash
Fayat SAS
Terex Corp
N/A
Cash
T&H Global Holdings LLC
Solera Holdings Inc
N/A
Undisclosed
Towergate Insurance Ltd
Aon PLC
N/A
Undisclosed
Affiliated Managers Group Inc,Clear Choice Financial Inc,Brook Venture Partners
N/A
Cash
Harbinger Group Inc
N/A
Undisclosed
Lockheed Martin Corp
Tata Group,Polaris Venture Partners (Fund: Polaris Venture Partners V LP)
N/A
Undisclosed
American United Mutual Insurance Holding Co
City National Corp/CA
N/A
Cash
Heartland Payment Systems Inc
N/A
Undisclosed

Deal Status
Completed
Completed
Completed
Terminated
Completed
Terminated
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Completed

Deal Attribute
Target Multiples
Free Cashflow
Income B/F XO
Net Income
Net Income + Deprec
EBIT
Cashflow from Ops.
EBITDA
Book Value
Market Cap
Stockholder Eqty
Enterprise Value
Total Assets
Revenue
P remiums P aid
25.01-50%
10.01-25%

# Deals
4
5
4
6
7
7
7
8
8
8
8
9
8
# Deals
2
4

Min - Max
7.18 - 33.37
3.88 - 37.84
3.81 - 37.84
1.77 - 30.10
1.79 - 37.96
2.36 - 40.27
1.16 - 23.66
.98 - 4.97
.92 - 5.77
.70 - 2.51
.15 - 1.20
.04 - .90
.23 - 2.44
Volume
6.98B
4.94B

Mean
Max
Median Min
20.3 x
33.37
7.18
18.4 x
20.9 x
37.84
3.88
16.4 x
20.8 x
37.84
3.81
15.5 x
15.9 x
30.1
1.77
13.6 x
19.9 x
37.96
1.79
8.9 x
21.3 x
40.27
2.36
5.0 x
12.4 x
23.66
1.16
3.7 x
3.0 x
4.97
0.98
1.9 x
3.3 x
5.77
0.92
1.8 x
1.6 x
2.51
0.7
1.8 x
0.7 x
1.2
0.15
0.6 x
0.5 x
0.9
0.04
0.5 x
1.3 x
2.44
0.23
0.5 x
P erc ent
28%
28%
20%
20%

Comparable Companies - Sports Goods & Equipment Companies, with Market Caps Above 2.5B
($ in Millions Except Per Share and Per Unit Data)
Opera ti ng Sta ti s ti cs
Com pa ny N a m e

Ca pi ta l i z a ti on
Equi ty Enterpri s e
V a l ue
V a l ue

Revenue
LTM
FY1

Polaris Industries Inc.

HARLEY-DAVIDSON, INC.
Hasbro, Inc.
THOR INDUSTRIES, INC.
BRP Inc.

$ 10,391
14,150
7,287
2,926
2,748

$ 10,450
18,414
8,517
2,636
3,576

Medi a n
Mea n

$ 8 ,8 3 9
$ 8 ,0 3 9

$ 9 ,4 8 3
$ 4 ,8 1 1

Brunswic k Corporation

$ 4 ,4 1 7

$ 4 ,2 5 0

4,288
6,219
4,260
3,525
3,038

EBITDA
LTM
FY1

4,460
5,601
4,349
3,954
3,262

$ 4 ,2 7 4
$ 3 ,7 0 9

$ 4 ,4 0 5
$ 4 ,0 5 3

$
$

$ 3 ,8 0 2

$ 3 ,8 2 4

795

Proj ected Proj ected

Reported N et Incom e Revenue
EBITDA
LTM
FY1
G rowth
G rowth

EBITDA Ma rg i n
LTM
FY1

842
1,507
819
340
385

427
846
376
179
61

452
842
416
214
171

19.3%
8.2%
4.3%
8.8%
12.1%

12.8%
(3.0%)

18.5%
7.9%
7.6%

18.9%
26.9%
18.8%
8.6%
11.8%

537
267

$
$

831
494

$
$

402
228

$
$

434
264

8 .5 %
5 .3 %

(3 .0 %)
(4 .9 %)

1 3 .2 %
7 .8 %

1 8 .3 %
1 3 .3 %

415

441

831

281

(0 .4 %)

1 9 .4 %

1 0 .9 %

1 1 .5 %

279
231

WACC Analysis
($ in millions, except per share data)
Disc ount Rate Calc ulation - Assumptions
Risk-Free Rate:
Equity Risk Premium:
Interest Rate on Debt:

2.4%
7.0%
6.2% LIBOR + 225 basis points

Comparable Companies - Unlevered Beta Calc ulation

Levered
Equity
Unlevered
Name
Beta
Debt
V a l ue
Ta x Ra te
Beta
Polaris Industries Inc.
1.16 $
288 $ 8,806
33.7%
1.14
HARLEY-DAVIDSON, INC.
1.25
5,259
14,261
34.1%
1.01
Hasbro, Inc.
0.84
1,397
6,550
19.3%
0.72
MATTEL, INC.
1.02
1,604
14,949
17.8%
0.94
THOR INDUSTRIES, INC.
0.89
2,792
30.6%
0.89
BRP Inc.
0.44
795
3,112
49.0%
0.39
Median
0.96
0.91
Brunswick Corporation

1.56

460

4,096

34%

Brunswic k Corporation - Levered Beta & WACC Calc ulation

Unlevered
Equity
Beta

Brunswick Corporation

0.91

Debt

460

V a l ue

Ta x Ra te

4,096

Cost of Equity Based on Comparables:

Cost of Equity Based on Historical Beta:

34% $

Levered
Beta
0.98
9.3%
13.3%

WACC = Cost of Equity * % Equity + Cost of Debt * % Debt *

(1 - Tax Rate) + Cost of Preferred Stock * % Preferred Stock
WACC

8.7%

P ublic Company Comparables:

LTM EV / Revenue
FY1 EV / Revenue
LTM EV / EBITDA
FY1 EV / EBITDA
LTM P / E
FY1 P / E
Disc ounted Cash Flow
DCF Multiples Method (7-11%, 6.0-14.0 x)
DCF Gordon Growth (7-11%, 1-5% Growth)
P rec edent Transac tion Analysis
EV / Net Income
EV / FCF
EV / Net Income + Dep
SO TP and Analyst P ric e Targets
SOTP Valuation
Analyst Price Targets

Multiples Range
Low
High
1.9 x
2.0 x
1.9 x
2.0 x
11.9 x
12.2 x
10.6 x
10.9 x
18.1 x
22.8 x
16.4 x
17.0 x

15.5x
18.4x
13.6x

20.8x
20.3x
15.9x

Metric
$3,801.60
$3,824.08
$414.60
$440.55
$222.20
$280.70

$281
$339
$368

Balanc e Sheet Adjustment

O utstanding Shares

Implied Price
Low
High
$79.28
$ 84.55
$79.79
$83.73
$54.85
$56.12
$51.90
$53.38
$44.96
$56.29
$51.44
$53.22
$59.63
$46.28

$71.54
$59.78

$48.50
$68.75
$55.62

$64.66
$75.73
$64.81

$75.85
$46.00
168.00
93.00

$79.05
$59.00

Capitalization Table
Consolidated Market Cap
- Cash and Short Term
+ Short Term Debt
+ Long Term Debt
+ Preferred Stock
+ Minority Interest
= Enterprise Value

4,417
624
4
452
4,249

Marine Engines
Company Name
Tidewater Inc. (NYSE:TDW)
SEACOR Holdings Inc. (NYSE:CKH)

Exc hange:Tic ker

NYSE:TDW
NYSE:CKH

Industry Classific ations

Marine
Marine

International Shipholding Corp.

(NYSE:ISH)
Scorpio Bulkers Inc. (NYSE:SALT)

NYSE:ISH

Marine (Primary)

NYSE:SALT

Marine (Primary)

Market Cap ($ $ mm)

1,767.8
1,369.5

TEV/Forward Total Revenue

2.1 x
1.4 x

121.3

1.2 x

477.0

2.4 x
1 .8 x
1 .7 x

Market Cap ($ $ mm)

2,200.0

TEV/Forward Total Revenue

1.6 x

Mean
Median

Boats
Company Name
Qingdao Port International Co., Ltd.
(SEHK:6198)
China Fishery Group Limited
(SGX:B0Z)
Swiber Holdings Limited (SGX:AK3)

Exc hange:Tic ker

SEHK:6198

Industry Classific ations

Commercial Marine Crafts

SGX:B0Z

Commercial Marine Crafts

457.1

2.4 x

SGX:AK3

Commercial Marine Crafts

153.0

1.8 x

Maridive & Oil Services SAE

(CASE:MOIL)
Pan-United Corporation Ltd
(SGX:P52)
ASL Marine Holdings Ltd. (SGX:A04)

CASE:MOIL

Commercial Marine Crafts

331.8

2.4 x

SGX:P52

Commercial Marine Crafts

370.2

0.9 x

SGX:A04

Commercial Marine Crafts

159.9
Mean
Median

1.44
1 .8 x
1 .7 x

Fitness
Company Name
Tube Investments of India Limited
(BSE:504973)
Amer Sports Corp. (HLSE:AMEAS)

Exc hange:Tic ker

BSE:504973

Industry Classific ations

Fitness Equipment

HLSE:AMEAS

Market Cap ($ $ mm)

1,023.7

TEV/Forward Total Revenue

2.2 x

Fitness Equipment (Primary)

2,420.2

1.1 x

Folli Follie S.A. Commercial Industrial ATSE:FFGRP

and Technical Company
(ATSE:FFGRP)
Nautilus Inc. (NYSE:NLS)
NYSE:NLS

Fitness Equipment

2,396.2

1.9 x

Fitness Equipment (Primary)

402.9

1.3 x

Escalade Inc. (NasdaqGM:ESCA)

Fitness Equipment (Primary)

187.1

1.4 x

NasdaqGM:ESCA

Mean

1 .6 x

Median

1 .4 x

P/E FY1 Last:

20.25x

P/E FY1 Mean:

15.97x

St.Dev from Mean:

2.31x

P/E FY2 Last:

16.64x

P/E FY2 Mean:

14.28x

St.Dev from Mean:

1.55x

P/E FY3 Last:

14.10x

P/E FY3 Mean:

12.86x

St.Dev from Mean:

1.06x

EV/EBITDA FY1 Last:

9.71x

EV/EBITDA FY1 Mean:

8.52x

St.Dev from Mean:

1.38x

EV/EBITDA FY2 Last:

8.14x

EV/EBITDA FY2 Mean:

7.28x

St.Dev from Mean:

1.27x

EV/EBITDA FY3 Last:

7.14x

EV/EBITDA FY3 Mean:

6.57x

St.Dev from Mean:

0.90x

Brokers' Target Price

70
60
50

40
30

20
10
0
BMO Capital
Markets

SunTrust
Robinson
Humphrey

Robert W. Baird &

Co

Wells Fargo
Securities

Broker

Analyst

BMO Capital Markets

GERRICK L JOHNSON

SunTrust Robinson Humphrey

Longbow
Research

Wunderlich
Securities

Recommendation

EVA Dimensions

RBC Capital
Markets

Target

Date

outperform

53.00

21-Nov-14

MICHAEL A SWARTZ

buy

55.00

19-Nov-14

Robert W. Baird & Co

CRAIG R KENNISON

outperform

54.00

19-Nov-14

Wells Fargo Securities

TIMOTHY A CONDER

outperform

Longbow Research

DAVID S MACGREGOR

buy

50.00

18-Nov-14

Wunderlich Securities

ROMMEL DIONISIO

buy

57.00

17-Nov-14

EVA Dimensions

CRAIG STERLING

buy

RBC Capital Markets

JOSEPH SPAK

KeyBanc Capital Markets

18-Nov-14

14-Nov-14

sector perform

46.00

24-Oct-14

SCOTT W HAMANN

buy

55.00

24-Oct-14

Raymond James

JOSEPH D HOVORKA

strong buy

51.00

24-Oct-14

B Riley & Co

JIMMY BAKER

buy

59.00

24-Oct-14

KeyBanc Capital Raymond James

Markets

B Riley & Co

Holder Name

Position Position Change

MCCOY DUSTAN E

508,884

% of
Market Value Ownership Report Date

Source

24,283,944

0.55%

5/6/2014

Form 4

STAYER RALPH C

90,838

1,525

4,334,789

0.10%

10/31/2014

Form 4

FERNANDEZ MANUEL A

75,339

1,787

3,595,177

0.08%

10/31/2014

Form 4

ARCHIBALD NOLAN D

75,124

206

3,584,917

0.08%

10/31/2014

Form 4

METZGER WILLIAM L

71,787

3,425,676

0.08%

3/4/2014

Proxy

Ownership Type

Ownership Statistics
Shares Outstanding (M)

92.4

Float

-6% 1%

98.6%

Short Interest (M)

3.7

Short Interest as % of Float

Institutional Ownership Distribution

4.07%

Days to Cover Shorts

2.57

Ownership (Institutional)

104.94%

Ownership (Retail & Other)

-6.33%

Ownership (Insider)

1.39%

Geographic Ownership Distribution

United States

92.59%

Canada

2.37%

Britain

2.09%

Unknown Country

1.31%

Norway

0.75%

Switzerland

0.35%

Japan

0.17%

Others

0.36%

93%
Ownership (Institutional)

Investment Advisor

81.94%

Hedge Fund Manager

12.29%

Pension Fund (Erisa)

1.96%

Individual

1.31%

Others

2.51%

Institutional Ownership
1%
2%

3%

12%

Ownership (Retail & Other)

Ownership (Insider)

Geographic Ownership
1%
2%
3%

1%0% 0%0%
Investment Advisor
Pension Fund (Erisa)
Others

93%
United States
Britain
Norway
Japan

82%

Canada
Unknown Country
Switzerland
Others

Hedge Fund Manager

Individual

$60

7M

$58

6M

$56

5M

$54

4M

$52

3M

$50

2M

$48

1M

0
5

49

U.S. & Canada Toys

International

46

Entertainment & Liscensing/Other

Operations

$46
Nov-19-2013

0M
Jan-19-2014

Mar-19-2014

May-19-2014
Volume

Jul-19-2014

Share Pricing

Sep-19-2014

$65

1.6M

$63

1.4M

$61

1.2M

$59
$57

1.0M

$55

0.8M

$53

0.6M

$51

0.4M

$49

0.2M

$47
$45
Nov-18-2013

Feb-18-2014

May-18-2014
Volume

Share Pricing

Aug-18-2014

0.0M
Nov-18-2014

23

Recreational Vehicles-Towables
Recreational Vehicles-Motorized
77

$34

2M
2M

$32

2M

$30

1M

$28

1M
1M

$26

1M

$24

1M
0M

$22
$20
Nov-19-2013

Parts & Accessories

0M
0M
Jan-19-2014

Mar-19-2014

May-19-2014
Volume

Jul-19-2014

Share Pricing

Sep-19-2014

100

$80

10M
9M

$75

8M

11

7M

$70

6M
$65

Motorcycles and Related Products

Operations

5M
4M

$60

2M

$55

1M
$50
Nov-19-2013

Financial Services Operations

3M

0M
Jan-19-2014

Mar-19-2014

May-19-2014
Volume

Jul-19-2014

Share Pricing

Sep-19-2014

89

$50

25M

$45

20M

$40

15M

$35

10M

$30

5M

46

North America
45

$25
Nov-19-2013

0M
Jan-19-2014

Mar-19-2014

May-19-2014
Volume

Jul-19-2014

Share Pricing

Sep-19-2014

International

American Girl

$170

3M

$160

3M

$150

2M

$140
2M
$130

1M

$110
$100
Nov-19-2013

Vehicles

1M

$120

0M
Jan-19-2014

Mar-19-2014

May-19-2014

Volume

Jul-19-2014

Share Pricing

Sep-19-2014

100