LBO Test - 75

Assumptions
Interest Income
2%
Implied Entry Multiple
Exit Multiple
6.0x
Tax Rate
40%
Amortization
5 years
Minimum Cash Bala
10
Advisory Fees
15
Financing Fees
5
Term
Sr. Sub
Mezz
ASP Growth
D&A
Days Receivable
Days Payable
Days Inventory
ASP
Volume
Revenue
3.0x
1.5x
0.5x
3%
10
70
65
45
2007A
$4.35
100
$435
Capitalization
Current Share Price $30.00
FD Shares
50
% Premium
Rates
8%
12%
8%/4%
2008A
$5.93
120
$711
2009A
$7.14
130
$928
COGS
(214)
(284)
(328)
Operating Expenses
(103)
(75)
(87)
(77)
(92)
(93)
(8)
(10)
(11)
Interest Expense
Memo: Capex
Balance Sheet
Cash
A/R
Inventory
Prepaid Expenses
Total Current Assets
35.0%
2009A
$159
96
50
4
$309
15.00%
PPE
Goodwill
Total Assets
A/P
Accrued Liability
Total Current Liabilities
1,500
0
$1,809
25
63
$89
Debt
Total Liabilities
1,357
$1,446
Shareholder's Equity
Total Liabilities & SE
364
$1,809
12.50%
10.00%
7.50%
5.00%
Assumptions
Interest Income
2%
Exit Multiple
6.0x
Tax Rate
40%
Amortization
5 years
Minimum Cash Bala
10
Advisory Fees
15
Financing Fees
5
Term
Sr. Sub
Mezz
ASP Growth
D&A
Days Receivable
Days Payable
Days Inventory
2009 EBITDA
2014 EBITDA
3.0x
1.5x
0.5x
3%
10
70
65
45
$513.4
$956.0
Income Statement 2007A

ASP
$4.35
Volume
100
Revenue
$435
COGS
(214)
COGS margin
49.1%
Operating Expenses
(103)
Operating Expenses 23.7%
EBITDA
$118.2
D&A
(10.0)
EBIT
$108.2
Interest Expense
(77)
EBT
$31.4
Tax
(12.6)
NI
$18.9
Memo: Capex
(8)
Balance Sheet
Capitalization
Current Share Pric $30.00
FD Shares
50
Purchase Accounting
% Premium
35.0%
Purchase Share Pri
$40.5
Equity Value
2,025.0
Plus: Debt
1,357.2
Less: Cash
(159.1)
Enterprise Value
3,223.2
Rates
8%
12%
8%/4%
2008A
$5.93
120
2009A
$7.14
130
$711
$928
(284)
39.9%
(75)
10.6%
$352.4
(10.0)
$342.4
(92)
$250.6
(100.3)
$150.4
(10)
Adj
2009PF
(328)
35.3%
(87)
9.3%
$513.4
(10.0)
$503.4
(93)
$410.7
(164.3)
$246.4
(11)
2009A
Adj
2009PF
Sources
Term
Sr. Sub
Mezz
Cash Less Min. Bal
Sponsor Equity
Total
Goodwill Accountin
Purchase Equity Valu
Less: Book Value of E
Plus: Fees
Goodwill
2010E
$7.4
149.5
15.00%
###
2011E
$7.6
168.2
12.50%
###
2012E
$7.8
185.0
10.00%
###
(388.3)
35.3%
(102.6)
9.3%
$608.1
(10.0)
$598.1
(239.9)
$358.2
(143.3)
$214.9
(449.9)
35.3%
(118.9)
9.3%
$704.7
(10.0)
$694.7
(223.5)
$471.2
(188.5)
$282.7
(509.7)
35.3%
(134.8)
9.3%
$798.4
(10.0)
$788.4
(200.0)
$588.4
(235.4)
$353.0
2010E
2011E
2012E
Cash
A/R
Inventory
Prepaid Expenses
PPE
Goodwill
Total Assets
A/P
Accrued Liability
Debt
Term
Sr. Sub
Mezz
Total Liabilities
Check
Sales
COGS
Days Receivable
Days Payable
Days Inventory
Prepaid Margin
Accrued Margin
$159
96
50
4
$309
1,500
0
$1,809
(149.1)
($149)
1,681.3
$1,532
25
63
$89
1,357
###
1,540.2
770.1
256.7
###
###
364
$1,809
0.0
322.5
$1,532
0.0
$10
96
50
4
$160
$10
210.8
47.9
4.9
$274
$10
244.2
55.5
5.7
$315
$10
276.7
62.8
6.5
$356
1,500
1,681
$3,342
1,500.0
1,681.3
$3,455
1,500.0
1,681.3
$3,497
1,500.0
1,681.3
$3,537
25
63
$89
69.1
75.1
$144
80.1
87.0
$167
90.8
98.5
$189
0
0.0
0.0
1,540 1,372.5 1,098.1
770
770.1
770.1
257
267.0
277.6
###
###
###
0.0
752.4
770.1
288.7
###
686
$3,342
0.0
901.1
$3,455
0.0
1,183.8
$3,497
0.0
1,536.8
$3,537
0.0
927.8
327.8
70.0
65.0
45.0
0.4%
6.8%
1,099.0
388.3
70.0
65.0
45.0
0.4%
6.8%
1,273.5
449.9
70.0
65.0
45.0
0.4%
6.8%
1,442.8
509.7
70.0
65.0
45.0
0.4%
6.8%
Cashflow Statement
NI
D&A
Non Cash Interest
Change in WC
CFO
$214.9
10.0
10.3
(57.5)
$177.7
$282.7
10.0
10.7
(18.9)
$284.4
$353.0
10.0
11.1
(18.4)
$355.7
Capex
CFI
(10.0)
($10.0)
(10.0)
($10.0)
(10.0)
($10.0)
Cash Availiable for Debt Paydown
$167.7
$274.4
$345.7
Borrowing/(Repayment)
CFF
Beg. Cash
Change in Cash
End. Cash
(167.7) (274.4) (345.7)

($167.7) ($274.4) ($345.7)
$10
0.0
$10
$10
0.0
$10
$10
0.0
$10
Debt Payment Schdule

Term
Beg. Balance
Optional Payment
End Balance
Interest Expense
1,540.2
8.0%
116.5
98.8
74.0
770.1
0.0
770.1
770.1
0.0
770.1
770.1
0.0
770.1
12.0%
92.4
92.4
92.4
4.0%
256.7
10.3
267.0
267.0
10.7
277.6
277.6
11.1
288.7
20.9
21.8
22.7
240.1
(0.2)
239.9
223.7
(0.2)
223.5
200.2
(0.2)
200.0
Sr. Sub
Beg. Balance
Optional Payment
End Balance
Interest Expense
1,540.2 1,372.5 1,098.1

(167.7) (274.4) (345.7)
1,372.5 1,098.1
752.4
770.1
Mezz
Beg. Balance
PIK
End Balance
256.7
Interest Expense
8.0%
Total Interest Expense

Interest Income
Net Interest Expense
IRR
Enterprise Value
Multiple
5.0x
6.0x
7.0x
Net Debt
3,040.6
3,648.7
4,256.8
3,523.3
4,227.9
4,932.6
3,991.8
4,790.2
5,588.6
2,399.6
2,135.8
1,801.2
1,387.4
2,092.1
2,796.7
2,190.7
2,989.0
3,787.4
5.0x
6.0x
7.0x
641.0
1,249.1
1,857.2
IRR
5.0x
6.0x
7.0x
(6.6%)
42.2%
47.2%
82.0%
74.6%
63.3%
170.7% 101.9%
76.7%
Equity Premium
25.00%
30.0%
35.0%
29.4%
26.1%
23.2%
40.2%
36.5%
33.4%
48.4%
44.6%
41.2%
55.1%
51.1%
47.6%
60.8%
56.7%
53.1%
65.8%
61.6%
57.9%
Exit Multiple
Equity Value
3.0x
4.0x
5.0x
6.0x
7.0x
8.0x
1,540.2
770.1
256.7
149.1
686.2
3,402.2
Cash Less Min. Bal

Sponsor Equity
Goodwill Accounting
Purchase Equity Value
Less: Book Value of Equity
Plus: Fees
2013E
$8.0
198.9
7.50%
###
2014E
$8.3
208.8
5.00%
###
(564.4)
35.3%
(149.2)
9.3%
$884.0
(10.0)
$874.0
(170.8)
$703.1
(281.3)
$421.9
(610.4)
35.3%
(161.4)
9.3%
$956.0
(10.0)
$946.0
(133.2)
$812.9
(325.2)
$487.7
2013E
2014E
2,025.0
(364)
20.0
1,681.3
Uses
Equity Purchase
Refinancing of Debt
Advisory Fees
Financing Fees
Total
2,025.0
1,357.2
15.0
5.0
3,402.2
$10
306.4
69.6
7.2
$393
$10
331.4
75.3
7.7
$424
1,500.0
1,681.3
$3,574
1,500.0
1,681.3
$3,606
100.5
109.1
$210
108.7
118.0
$227
0.0
335.7
770.1
300.3
###
0.0
0.0
620.2
312.3
###
1,958.7
$3,574
0.0
2,446.4
$3,606
0.0
1,597.6
564.4
70.0
65.0
45.0
0.4%
6.8%
1,727.8
610.4
70.0
65.0
45.0
0.4%
6.8%
$421.9
10.0
11.5
(16.8)
$426.6
$487.7
10.0
12.0
(14.1)
$495.6
(10.0)
($10.0)
(10.0)
($10.0)
$416.6
$485.6
(416.6) (485.6)
($416.6) ($485.6)
$10
0.0
$10
$10
0.0
$10
752.4
(416.6)
335.7
43.5
770.1
0.0
770.1
335.7
(335.7)
0.0
13.4
770.1
(149.9)
620.2
92.4
83.4
288.7
11.5
300.3
300.3
12.0
312.3
23.6
24.5
171.0
(0.2)
170.8
133.4
(0.2)
133.2
4,420.0
5,304.0
6,188.0
4,780.2
5,736.2
6,692.3
1,396.1
922.5
3,023.9
3,907.9
4,791.9
3,857.7
4,813.7
5,769.8
44.9%
54.5%
62.6%
uity Premium
40.0%
20.6%
30.7%
38.3%
44.6%
49.9%
54.6%
41.2%
47.6%
53.1%
45.0%
18.4%
28.3%
35.8%
41.9%
47.2%
51.7%
Assumptions
Interest Income
2%
Exit Multiple
6.0x
Tax Rate
40%
Amortization
5 years
Minimum Cash Bala
10
Advisory Fees
15
Financing Fees
5
Term
Sr. Sub
Mezz
ASP Growth
D&A
Days Receivable
Days Payable
Days Inventory
2009 Ebitda
ASP
Volume
3.0x
1.5x
0.5x
3%
10
70
65
45
513.4
Rates
8%
12%
8%/4%
2007A
4.4
2008A
5.9
2009A
7.1
100.0
120.0
130.0
711.4
(283.8)
39.9%
(75.2)
10.6%
352.4
(10.0)
342.4
(91.8)
250.6
(100.3)
150.4
(10)
927.8
(327.8)
35.3%
(86.7)
9.3%
513.4
(10.0)
503.4
(92.7)
410.7
(164.3)
246.4
(11)
Revenue
435.2
COGS
(213.9)
Margin
49.1%
Operating Expenses (103.1)
Margin
23.7%
Ebitda
118.2
Dep & Amort
(10.0)
Ebit
108.2
Interest Expense
(76.7)
Ebt
31.4
Tax
(12.6)
NI
18.9
Memo: Capex
(8)
Balance Sheet
Capitalization
FD Shares
50
Purchase Assumption
% Premium
35.0%
Purchase Share Pri
$40.5
Equity Value
2,025.0
Plus: Debt
1,445.7
Less: Cash
(159.1)
Enterprise Value
3,311.7
2009A
2010E
2011E
7.4
7.6
3%
3%
149.5
168.2
15.00% 12.50%
1,099.0 1,273.5
(388.3) (449.9)
35.3%
35.3%
(102.6) (118.9)
9.3%
9.3%
608.1
704.7
(10.0)
(10.0)
598.1
694.7
(239.9) (223.5)
358.2
471.2
(143.3) (188.5)
214.9
282.7
Adj
2009PF
2010E
2011E
Cash
A/R
Inventory
Prepaid Expenses
PPE
Goodwill
Total Assets
A/P
Accrued Liability
Existing Debt
Term
Sr. Sub
Mezz
Total Liabilities
Check
$159.1
96.2
50.0
4.2
$309.4
(149.1)
($149.1)
$10.0
96.2
50.0
4.2
$160.4
10.0
210.8
47.9
4.9
$273.6
10.0
244.2
55.5
5.7
$315.4
1,500.0
1,500.0 1,500.0 1,500.0
0.0 1,681.3 1,681.3 1,681.3 1,681.3
###
###
###
###
###
25.1
63.4
$88.5
$0.0
25.1
63.4
$88.5
69.1
75.1
$144.2
80.1
87.0
$167.1
1,357.2 (1,357.2)
0.0
0.0
0.0
1,540.2 1,540.2 1,372.5 1,098.1
770.1
770.1
770.1
770.1
256.7
256.7
267.0
277.6
###
###
###
###
###
363.7
###
901.1 1,183.8
###
###
0.0
0.0
927.8
327.8
1,099.0
388.3
1,273.5
449.9
70.0
65.0
45.0
0.4%
6.8%
70.0
65.0
45.0
0.4%
6.8%
70.0
65.0
45.0
0.4%
6.8%
NI
Dep & Amort
Non Cash Interest
Change in WC
CFO
214.9
10.0
10.3
(57.5)
177.7
282.7
10.0
10.7
(18.9)
284.4
Capex
CFI
(10.0)
(10.0)
(10.0)
(10.0)
Cash Availiable for Debt Payment
167.7
274.4
(167.7)
(167.7)
(274.4)
(274.4)
Days Receivable
Days Payable
Days Inventory
Prepaid Margin
Accured Margin
0.0
686.2
###
0.0
Sales
Cogs
0.0
322.5
###
Statement of Cash Flow
Debt Repayment/Borrowing
CFF
Beg. Cash
Change in Cash
End Cash
10.0
10.0
0.0
10.0
10.0
0.0
10.0
Debt Payment Schedule

Term
Beg Bal
Optional Payment
End Bal
1,540.2
Sr. Sub
Beg Bal
Optional Payment
End Bal
Mezz
Beg Bal
PIK
End Bal
Interest Expense
Term
Sr. Sub
Mezz
PIK
Interest Income
770.1
770.1
0.0
770.1
770.1
0.0
770.1
256.7
256.7
10.3
267.0
267.0
10.7
277.6
(116.5)
(92.4)
(20.9)
(10.3)
0.2
(239.9)
(98.8)
(92.4)
(21.8)
(10.7)
0.2
(223.5)
4.0%
8.0%
12.0%
8.0%
2.0%
1,540.2 1,372.5
(167.7) (274.4)
1,372.5 1,098.1
Sources
Term
Sr. Sub
Mezz
Cash - Min. Bal
Sponsor Equity
Total Sources
1,540.2
770.1
256.7
149.1
686.2
3,402.2
Purchase Accounting
Purchase Price
BV of Equity
Excess Purchase Price
Advisory Fees
Financing Fees
Goodwill
2,025.0
(363.7)
1,661.3
15.0
5.0
1,681.3
2012E
2013E
2014E
7.8
8.0
8.3
3%
3%
3%
185.0
198.9
208.8
10.00%
7.50%
5.00%
1,442.8 1,597.6 1,727.8
(509.7) (564.4) (610.4)
35.3%
35.3%
35.3%
(134.8) (149.2) (161.4)
9.3%
9.3%
9.3%
798.4
884.0
956.0
(10.0)
(10.0)
(10.0)
788.4
874.0
946.0
(200.0) (170.8) (133.2)
588.4
703.1
812.9
(235.4) (281.3) (325.2)
353.0
421.9
487.7
2012E
2013E
2014E
Uses
Equity Value
Debt Refinancing
Advisory Fees
Financing Fees
Total Uses
2,025.0
1,357.2
15.0
5.0
3,402.2
10.0
276.7
62.8
6.5
$356.0
10.0
306.4
69.6
7.2
$393.1
10.0
331.4
75.3
7.7
$424.4
1,500.0 1,500.0 1,500.0

1,681.3 1,681.3 1,681.3
###
###
###
90.8
98.5
$189.3
0.0
752.4
770.1
288.7
###
100.5
109.1
$209.6
0.0
335.7
770.1
300.3
###
108.7
118.0
$226.7
0.0
0.0
620.2
312.3
###
1,536.8 1,958.7 2,446.4

###
###
###
0.0
0.0
0.0
1,442.8
509.7
1,597.6
564.4
1,727.8
610.4
70.0
65.0
45.0
0.4%
6.8%
70.0
65.0
45.0
0.4%
6.8%
70.0
65.0
45.0
0.4%
6.8%
353.0
10.0
11.1
(18.4)
355.7
421.9
10.0
11.5
(16.8)
426.6
487.7
10.0
12.0
(14.1)
495.6
(10.0)
(10.0)
(10.0)
(10.0)
(10.0)
(10.0)
345.7
416.6
485.6
(345.7)
(345.7)
(416.6)
(416.6)
(485.6)
(485.6)
10.0
0.0
10.0
1,098.1
(345.7)
752.4
10.0
0.0
10.0
10.0
0.0
10.0
752.4
(416.6)
335.7
335.7
(335.7)
0.0
770.1
0.0
770.1
770.1
0.0
770.1
770.1
(149.9)
620.2
277.6
11.1
288.7
288.7
11.5
300.3
300.3
12.0
312.3
(74.0)
(92.4)
(22.7)
(11.1)
0.2
(200.0)
(43.5)
(92.4)
(23.6)
(11.5)
0.2
(170.8)
(13.4)
(83.4)
(24.5)
(12.0)
0.2
(133.2)
Assumptions
Interest Income
Implied Entry Multi
Exit Multiple
Tax Rate
Amortization
5
Minimum Cash Bala
Advisory Fees
Financing Fees
Term
Sr. Sub
Mezz
ASP Growth
D&A
Days Receivable
Days Payable
Days Inventory
Prepaid Margin
Accured Margin
Capitalization
FD Shares
50
Purchase Assumptions
% Premium
35.0%
Purchase Price/Sha
40.5
Equity Value
###
Net Debt
###
Enterprise Value
###
2%
6.3x
6.0x
40%
years
10
15
5
3.0x
1.5x
0.5x
5.0x
Rates
8%
12%
8%/4%
3%
10
70
65
45
0.4%
6.8%
2007A
$4.35
2008A
$5.93
2009A
$7.14
2010
7.35
3.00%
2011
7.57
3.00%
2012
7.80
3.00%
100
120
130
149.50
15.00%
168.19
12.50%
185.01
10.00%
$435
$711
$928
COGS
Margin
(214)
49.1%
(284)
39.9%
(328)
35.3%
388.26
35.33%
449.89
35.33%
509.73
35.33%
Operating Expenses
Margin
(103)
23.7%
(75)
10.6%
(87)
9.3%
102.64
9.34%
118.93
9.34%
134.75
9.34%
$118
$10
$108
$352
$10
$342
$513
$10
$503
$608
$10
$598
$705
$10
$695
$798
$10
$788
(77)
$31
(92)
$251
(93)
$411
(240.1)
$358
(223.7)
$471
(200.2)
$588
13
19
100
150
164
246
ASP
Volume
Revenue
EBITDA
D&A
EBIT
Interest Expense
EBT
Taxes
Net Income
1,099.0
143
215
1,273.5
188
283
1,442.8
235
353
Balance Sheet
Cash
A/R
Inventory
Prepaid Expenses
2009A AdjustmePF
$159
($149)
96
50
4
$309
PPE
Goodwill
Total Assets
1,500
0
$1,809
A/P
Accrued Liability
###
25
63
$89
Debt
Term
Sr. Sub
Mezz
Total Liabilities
1,357
$1,446
364
$1,809
Capex
CFI
Capex Margin
8
8
1.9%
2008A
150
$10
0
(1,357)
###
$770.09
$256.70
323
2009A
246
$10
0
160
256
10
10
1.4%
11
11
1.2%
Cash Available for Debt Repayment
Debt Schedule
Term Loan
Beginning Balance
Voluntary Amort.
Ending Balance
2007A
2008A
$1,500
$1,681
$3,342
$25
$63
$89
Check
SCF
2007A
Net Income
19
D&A
$10
PIK
0
Change in Current Assets
Change in Current Liab
CFO
29
2009
$10
$96
$50
$4
$160
2009A
2010
$10
210.8
47.9
$5
$274
2011
$10
244.2
55.5
$6
$315
2012
$10
276.7
62.8
$6
$356
###
$1,681
###
###
$1,681
###
###
$1,681
###
69.1
75.1
144.2
80.1
87.0
167.1
90.8
98.5
189.3
$0
$0
$0
$0
$1,540 1,372.6 1,098.3
752.7
$770
770.1
770.1
770.1
$257 $266.96 $277.64 $288.75
$2,655
$2,554
$2,313
$2,001
$686
$3,342
$901
$3,455
$1,184
$3,497
$1,536
$3,537
$0
$0
$0
$0
2010
215
$10
10.3
(113.2)
55.7
178
2011
283
$10
10.7
(41.8)
22.9
284
2012
353
$10
11.1
(40.6)
22.2
356
10.0
10
1.2%
10.0
10
1.2%
10.0
10
1.2%
167.5
274.3
345.6
2010
###
###
###
2011
2012
###
###
###
###
### $752.75
Interest
8% $116.51
Senior Sub
Beginning Balance
Voluntary Amort.
Ending Balance
Interest
$98.84
$74.04
$770.09 $770.09 $770.09

$0.00
$0.00
$0.00
$770.09 $770.09 $770.09
12%
$92.41
$92.41
$92.41
Mezz
Beginning Balance
PIK
Ending Balance
$256.70 $266.96 $277.64

4%
10.3
10.7
11.1
$266.96 $277.64 $288.75
Interest
8%
Total Interest
20.9
21.8
22.7
240.1
223.7
200.2
Sources
Term
Sr. Sub
Mezz
Equity
Cash
Total
###
$770.09
$256.70
$686.21
$149
###
2013
8.03
3.00%
2014
8.27
3.00%
198.88
7.50%
208.83
5.00%
1,597.6
1,727.8
564.39
35.33%
610.39
35.33%
149.20
9.34%
161.36
9.34%
$884
$10
$874
$956
$10
$946
(171.1)
$703
(133.4)
$813
281
422
325
488
Uses
Purchase of Equity
Advisory Fees
Financing Fees
Refinancing Debt
Total
###
15
5
1,357
###
2013
$10
306.4
69.6
$7
$393
2014
$10
331.4
75.3
$8
$424
###
$1,681
###
###
$1,681
###
100.5
109.1
209.6
108.7
118.0
226.7
$0
$0
336.3
0.0
770.1
620.9
$300.30 $312.31
$1,616
$1,160
$1,958
$3,574
$2,446
$3,606
$0
$0
2013
422
$10
11.5
(37.1)
20.3
426
2014
488
$10
12.0
(31.2)
17.1
495
10.0
10
1.2%
10.0
10
1.2%
416.5
485.4
2013
2014
$752.75 $336.26
###
###
$336.26
$0.00
$43.56
$13.45
$770.09 $770.09
$0.00
###
$770.09 $620.91
$92.41
$83.46
$288.75 $300.30
11.5
12.0
$300.30 $312.31
23.6
24.5
171.1
133.4
Assumptions
Interest Income
Implied Entry Multi
Exit Multiple
Tax Rate
Amortization
5
Minimum Cash Bala
Capitalization
FD Shares
50
2%
6.3x
6.0x
40%
years
10
Sources
Cash from B/S
Sponsor Equity
New Debt
Total Sources
$149
$686
2566.96
3402.23
Uses
Purchase Equity
Refinanced Debt
Advisory Fees
Financing Fees
Total Uses
2025
1,357
15
5
3402.23
% Premium
35.0%
Purchase Price per
40.5
Total Purchase Pric
2025
Plus: Existing Debt
1,357
Less: Existing Cash ($159)
Transaction TEV
3223.17
Purchase Accounting
Purchase Equity
$2,025
Less: Book Value
(364)
Excess Purchae Pr1661.31
Plus: Fees
20
Goodwill
1681.31
Term
Sr. Sub
Mezz
ASP
% Growth
Volume
% Growth
Revenue
COGS
Gross Profit
Multiple
$
Cash Int
3.0x 1540.18
8%
1.5x 770.088
12%
0.5x 256.696
8%
2007A
$4.35
100
$435
(214)
221.29
PIK Interest Rate

0%
8%
0%
12%
4%
12%
2008A
$5.93
36.22%
120
20.00%
$711
2009A
$7.14
20.40%
130
8.33%
$928
2010E
$7.35
3.00%
149.5
15.00%
$1,099
(284)
(328)
(388)
427.59
600.04
710.75
% Margin
50.85%
60.11%
64.67%
64.67%
D&A
SG&A
% of Revenue
(10)
(103)
23.70%
(10)
(75)
10.57%
(10)
(87)
9.34%
(10)
(103)
9.34%
EBIT
% Margin
108.17
24.86%
342.40
48.13%
503.39
54.26%
598.11
54.42%
Interest Expense
-239.933
EBT
358.18
Taxes
% Tax Rate
-143.272
40%
Net Income
214.91
Memo: EBITDA
Memo: Capex
118
(10)
352
(10)
513
(10)
Balance Sheet
Cash
A/R
Inventory
Prepaid Expenses
2009A
$159
96
50
4
$309
PPE
Goodwill
Total Assets
1,500
0
$1,809
A/P
Accrued Liability
608
(10)
Debit
25
63
$89
1,357
0
$1,446
(1,357)
364
$1,809
(364)
Net Working Capital
Days Receivable
1,500
1,681
$3,342
1681.31
Existing Debt
New Debt
Total Liabilities
CHECK
Credit 2009PF
($149)
$10
96
50
4
$160
62
37.8429
2566.96
$686
2010E
10
210.77
47.8671
$4.93
$274
1,500
1,681
$3,455
25
63
$89
69.1414
75.0523
$144
0
2,567
$2,655
0
2409.57
$2,554
686
$3,342
901
$3,455
62
119
70
Days Payable
Days Inventory
Prepaid % of Sales
Accrued % of COGS
27.9947
55.6776
0.45%
19.33%
65
45
0.45%
19.33%
SCF
2010E
214.91
10
10
(10)
(58)
167.66
Net Income
Plus: D&A
Plus: Non-Cash Interest
Less: Capex
Plus: Decrease / (Increase) in NWC
CADR
Debt Schedule
Term Loan
Beg. Bal
Paydown
End Bal
Interest
1540.18
(167.66)
1540.18 1372.52
8%
Sr. Sub
Beg. Bal
Paydown
End Bal
Interest
Mezz
Beg. Bal
PIK
End Bal
Cash Interest
770.088
0.00
770.088 770.088
12%
92.4106
4%
256.696
10.2678
256.696 266.964
8%
20.9464
Cash
Beg. Bal
Cash Build
End Bal
Interest Income
Total Cash Interest Expense
Non-Cash Interest Expense
Interest Income
116.508
$10
2%
10
0.00
10
0.2
229.865
10.2678
-0.2
239.933
Total Debt
2409.57
1
IRR
EBITDA
Exit Multiple
TEV
Less: Debt
Plus: Cash
Equity Value
2010E
608
6.0x
3648.68
-2409.57
10
1249.11
ROIC
IRR
1.8x
82.03%
2014 ROIC
Exit
Multiple
7.0x
5.0x
5.5x
6.0x
6.5x
7.0x
Entry Premiu
30.0%
6.3x
7.1
7.9
8.7
9.4
2014 IRR
Exit
Multiple
47.6%
5.0x
5.5x
6.0x
6.5x
7.0x
Entry Premiu
30.0%
44.6%
48.0%
51.1%
54.0%
56.7%
2011E
2012E
2013E
2014E
$7.57
$7.80
$8.03
$8.27
3.00%
3.00%
3.00%
3.00%
168.188 185.006 198.882 208.826
12.50% 10.00%
7.50%
5.00%
$1,273
$1,443
$1,598
$1,728
(450)
823.58
(510)
933.12
(564)
(610)
###
###
64.67%
64.67%
64.67%
64.67%
(10)
(119)
9.34%
(10)
(135)
9.34%
(10)
(149)
9.34%
(10)
(161)
9.34%
694.65
54.55%
788.37
54.64%
873.99
54.71%
946.04
54.75%
-223.498
471.15
-199.99 -170.846 -133.164

588.38
-188.461 -235.352
40%
40%
282.69
705
(10)
353.03
798
(10)
703.15
812.88
-281.26 -325.151
40%
40%
421.89
884
(10)
487.73
956
(10)
2011E
10
244.23
55.466
$5.71
$315
2012E
2013E
2014E
10
10
10
276.71
306.39
331.36
62.843 69.5829 75.2539
$6.47
$7.16
$7.75
$356
$393
$424
1,500
1,681
$3,497
1,500
1,681
$3,537
1,500
1,681
$3,574
1,500
1,681
$3,606
80.1176 90.7732 100.509

108.7
86.9668 98.5334 109.101 117.993
$167
$189
$210
$227
0
2145.83
$2,313
1,184
$3,497
138
70
0
0
1811.2 1406.11
$2,001
$1,616
0
932.53
$1,159
1,537
$3,537
2,446
$3,606
157
70
1,959
$3,574
174
70
188
70
65
45
0.45%
19.33%
65
45
0.45%
19.33%
65
45
0.45%
19.33%
65
45
0.45%
19.33%
2011E
282.69
10
11
(10)
(19)
274.42
2012E
353.03
10
11
(10)
(18)
345.74
2013E
421.89
10
12
(10)
(17)
416.63
2014E
487.73
10
12
(10)
(14)
485.60
KILL
1
1372.52
1098.1 752.359 335.727
(274.42) (345.74) (416.63) (335.73)
1098.1 752.359 335.727
0
98.8245 74.0182 43.5234 13.4291
770.088 770.088 770.088 770.088

0.00
0.00
0.00 (149.87)
770.088 770.088 770.088
620.22
92.4106 92.4106 92.4106 83.4185
266.964 277.643 288.748 300.298

10.6786 11.1057 11.5499 12.0119
277.643 288.748 300.298
312.31
21.7843 22.6556 23.5619 24.5043
10
0.00
10
10
0.00
10
10
0.00
10
10
0.00
10
0.2
0.2
0.2
0.2
213.019 189.084 159.496 121.352

10.6786 11.1057 11.5499 12.0119
-0.2
-0.2
-0.2
-0.2
223.498
199.99 170.846 133.164
2145.83
2
1811.2 1406.11
3
932.53
5
2011E
2012E
2013E
2014E
705
798
884
956
6.0x
6.0x
6.0x
6.0x
4227.91 4790.22 5303.97 5736.24
-2145.83 -1811.2 -1406.11 -932.53
10
10
10
10
2092.08 2989.02 3907.86 4813.71
3.0x
74.61%
4.4x
63.31%
5.7x
54.48%
7.0x
47.64%
Entry Premium
32.5% 35.0%
37.5%
5.9x
5.6x
5.3x
6.7
6.3
6.0
7.4
7.0
6.7
8.2
7.7
7.3
8.9
8.4
8.0
40.0%
5.1x
5.7
6.3
7.0
7.6
Premium Step
Multiple Step
2.50%
0.5x
40.0%
38.3%
41.6%
44.6%
47.4%
49.9%
Premium Step
Multiple Step
2.50%
0.5x
2014 ROIC
2014 IRR
Entry Premium
32.5%
35.0%
37.5%
42.8%
41.2%
39.8%
46.2%
44.6%
43.1%
49.3%
47.6%
46.1%
52.2%
50.5%
48.9%
54.8%
53.1%
51.5%
Assumptions
Interest Income
Exit Multiple
Tax Rate
Amortization
Minimum Cash Balance
2%
6.2x
6.0x
40%
5 years
10
Sources
Cash from B/S
Sponsor Equity
New Debt
Total Sources
$149
$611
2566.96
3327.23
Uses
Purchase Equity
Refinanced Debt
Advisory Fees
Financing Fees
Total Uses
1950
1,357
15
5
3327.23
Purchase Accounting
Purchase Equity
Less: Book Value
Excess Purchae Price
Plus: Fees
Excess to be Allocated
$2,025
(364)
1661.31
20
1681.31
New PPE
New Intangibles
Goodwill Before Deferred Tax
15.0% 252.197
20.0% 336.263
65.0% 1092.85
Deferred Taxes
235.384
Goodwill
1328.24
Term
Sr. Sub
Mezz
ASP
% Growth
Multiple
$
Cash Int
3.0x 1540.18
8%
1.5x 770.088
12%
0.5x 256.696
8%
2007A
$4.35
2008A
$5.93
36.22%
2009A
$7.14
20.40%
Capitalization
FD Shares
50
% Premium
35.0%
Purchase Price per
39
Total Purchase Pric
1950
Plus: Existing Debt
1,357
Less: Existing Cash ($159)
Transaction TEV
3185.67
Years to Amortize
10
10
PIK Interest Rate

0%
8%
0%
12%
4%
12%
2010E
$7.35
3.00%
Volume
% Growth
Revenue
100
$435
120
20.00%
$711
130
8.33%
$928
149.5
15.00%
$1,099
COGS
% of Revenue
(214)
49.15%
(284)
39.89%
(328)
35.33%
(388)
35.33%
Gross Profit
% Margin
221.29
50.85%
427.59
60.11%
600.04
64.67%
710.75
64.67%
D&A
Additional Dep.
Additional Amort
SG&A
% of Revenue
(10)
0
0
(103)
23.70%
(10)
0
0
(75)
10.57%
(10)
0
0
(87)
9.34%
(10)
(25)
(34)
(103)
9.34%
EBIT
% Margin
108.17
24.86%
342.40
48.13%
503.39
54.26%
539.27
49.07%
Interest Expense
-10.0678
EBT
529.20
Cash Taxes
Deferred Taxes
Taxes
% Tax Rate
-235.218
23.5384
-211.68
40%
Net Income
Memo: EBITDA
Memo: Capex
317.52
118
(10)
352
(10)
513
(10)
Balance Sheet
Cash
A/R
Inventory
Prepaid Expenses
2009A
$159
96
50
4
$309
PPE
New PPE
New Intangibles
Goodwill
Total Assets
1,500
0
0
0
$1,809
A/P
Accrued Liability
25
63
$89
549
(10)
Debit
252.197
336.263
1328.24
Credit
2009PF
($149)
$10
96
50
4
$160
1,500
252
336
1,328
$3,577
25
63
$89
2010E
10
210.769
47.8671
$4.93
$274
1,500
227
303
1,328
$3,631
69.1414
75.0523
$144
DTL
Existing Debt
New Debt
Total Liabilities
0
1,357
0
$1,446
364
$1,809
CHECK
Net Working Capital
Days Receivable
Days Payable
Days Inventory
Prepaid % of Sales
Accrued % of COGS
235.384
(1,357)
2566.96
(364)
$686
235
0
2,567
$2,891
212
0
2271.65
$2,628
686
$3,577
1,004
$3,631
62
62
37.8429
27.9947
55.6776
0.45%
19.33%
119
70
65
45
0.45%
19.33%
SCF
2010E
317.52
10
25
34
(24)
10
(10)
(58)
305.58
Net Income
Plus: D&A
Plus: New Dep
Plus: New Amort
Less: Deferred Taxes
Less: Capex
Plus: Decrease / (Increase) in NWC
CADR
Debt Schedule
Term Loan
Beg. Bal
Paydown
End Bal
Interest
1540.18
(305.58)
1540.18
1234.6
8%
Sr. Sub
Beg. Bal
Paydown
End Bal
Interest
110.991
770.088
0.00
770.088 770.088
12%
92.4106
Mezz
Beg. Bal
PIK
End Bal
Cash Interest
4%
256.696
10.2678
256.696 266.964
8%
20.9464
Cash
Beg. Bal
Cash Build
End Bal
Interest Income
$10
2%
10
0.00
10
0.2

Non-Cash Interest Expense
Interest Income
224.348
10.2678
-0.2
10.0678
Total Debt
2271.65
1
IRR
EBITDA
Exit Multiple
TEV
Less: Debt
Plus: Cash
Equity Value
2010E
549
6.0x
3295.6
-2271.65
10
1033.95
ROIC
IRR
1.6x
59.39%
2014 ROIC
Exit
Multiple
7.3x
5.0x
5.5x
6.0x
6.5x
7.0x
Entry Premiu
30.0%
7.3x
7.3
7.3
7.3
7.3
2014 IRR
Exit
Multiple
48.8%
30.0%
5.0x 48.8%
5.5x 48.8%
Entry Premiu
6.0x 48.8%
6.5x 48.8%
7.0x 48.8%
2011E
$7.57
3.00%
2012E
$7.80
3.00%
2013E
$8.03
3.00%
2014E
$8.27
3.00%
168.188 185.006 198.882 208.826

12.50% 10.00%
7.50%
5.00%
$1,273
$1,443
$1,598
$1,728
(450)
35.33%
(510)
35.33%
(564)
35.33%
(610)
35.33%
823.58
64.67%
933.12
64.67%
###
64.67%
###
64.67%
(10)
(25)
(34)
(119)
9.34%
(10)
(25)
(34)
(135)
9.34%
(10)
(25)
(34)
(149)
9.34%
(10)
(25)
(34)
(161)
9.34%
635.81
49.93%
729.52
50.56%
815.15
51.02%
887.19
51.35%
-10.4786 -10.9057 -11.3499 -11.8119

625.33
718.62
803.80
875.38
-273.669 -310.986 -345.058 -373.691

23.5384 23.5384 23.5384 23.5384
-250.131 -287.447 -321.52 -350.153
40%
40%
40%
40%
375.20
646
(10)
431.17
740
(10)
482.28
825
(10)
525.23
897
(10)
2011E
2012E
2013E
2014E
10
10
10
10
244.228 276.711 306.388 331.358
55.466
62.843 69.5829 75.2539
$5.71
$6.47
$7.16
$7.75
$315
$356
$393
$424
1,500
202
269
1,328
$3,614
1,500
177
235
1,328
$3,596
1,500
151
202
1,328
$3,574
1,500
126
168
1,328
$3,547
80.1176 90.7732 100.509

108.7
86.9668 98.5334 109.101 117.993
$167
$189
$210
$227
188
165
141
0
0
0
1880.1 1432.01 931.235
$2,235
$1,786
$1,282
1,379
$3,614
138
1,810
$3,596
157
2,292
$3,574
174
118
0
384.84
$729
2,818
$3,547
188
70
65
45
0.45%
19.33%
70
65
45
0.45%
19.33%
70
65
45
0.45%
19.33%
70
65
45
0.45%
19.33%
2011E
375.20
10
25
34
(24)
11
(10)
(19)
402.23
2012E
431.17
10
25
34
(24)
11
(10)
(18)
459.19
2013E
482.28
10
25
34
(24)
12
(10)
(17)
512.33
2014E
525.23
10
25
34
(24)
12
(10)
(14)
558.41
KILL
1
1234.6 832.365 373.178

(402.23) (459.19) (373.18)
832.365 373.178
0
0
0.00
0
82.6785 48.2217 14.9271
770.088 770.088 770.088 630.937

0.00
0.00 (139.15) (558.41)
770.088 770.088 630.937 72.5301
92.4106 92.4106 84.0615
42.208
266.964 277.643 288.748 300.298

10.6786 11.1057 11.5499 12.0119
277.643 288.748 300.298
312.31
21.7843 22.6556 23.5619 24.5043
10
0.00
10
10
0.00
10
10
0.00
10
10
0.00
10
0.2
0.2
0.2
0.2
196.873 163.288
122.55 66.7124
10.6786 11.1057 11.5499 12.0119
-0.2
-0.2
-0.2
-0.2
10.4786 10.9057 11.3499 11.8119
1880.1 1432.01 931.235
2
384.84
5
2011E
2012E
2013E
2014E
646
740
825
897
6.0x
6.0x
6.0x
6.0x
3874.83 4437.14 4950.89 5383.17
-1880.1
-1432 -931.235 -384.84
10
10
10
10
2004.73 3015.13 4029.66 5008.33
2.9x
70.92%
4.2x
60.91%
5.6x
53.61%
7.3x
48.82%
Entry Premium
32.5% 35.0%
37.5%
7.3x
7.3x
7.3x
7.3
7.3
7.3
7.3
7.3
7.3
7.3
7.3
7.3
7.3
7.3
7.3
37.5%
7.3x
7.3
7.3
7.3
7.3
Premium Step
Multiple Step
2.50%
0.5x
37.5%
48.8%
48.8%
Premium Step
Multiple Step
2.50%
0.5x
2014 ROIC
2014 IRR
Entry Premium
32.5%
35.0%
37.5%
48.8%
48.8%
48.8%
48.8%
48.8%
48.8%
48.8%
48.8%
48.8%
48.8%
48.8%
48.8%
48.8%
48.8%
48.8%
48.8%
48.8%
48.8%
Assumptions
Interest Income
Exit Multiple
Tax Rate
Amortization
Advisory Fees
Financing Fees
2%
6.0x
40%
5 years
10
15
5
Term
Sr. Sub
Mezz
ASP Growth
D&A
Days Receivable
Days Payable
Days Inventory
3.0x
1.5x
0.5x
3%
10
70
65
45
Sources
Sponsor Equity
Acquisition Debt
Cash From BS
686.2065
2566.9615
149.062
Rates
8%
12%
8%/4%
3402.23
Term
Sr. Sub
Mezz
Multiple
$
Cash
PIK
3.0x 1540.1769
8%
1.5x 770.08845
12%
0.5x 256.69615
8%
0%
0%
4%
2007A
$4.35
2008A
$5.93
2009A
$7.14
100
120
130
Revenue
$435
$711
$928
COGS
(214)
(284)
(328)
$221
50.9%
$428
60.1%
$600
64.7%
-10
-10
-10
ASP
Growth %
Volume
Growth %
Gross Margins
Gross Margins %
D&A
SG&A
Operating Margins %
(103)
23.7%
(75)
10.6%
(87)
9.3%
Operating Income
Operating Margins %
$108.17
24.9%
$342.40
48.1%
$503.39
54.3%
(77)
(92)
(93)
31
251
411
118
(10)
352
(10)
513
(10)
Interest Expense
EBT
Taxes
Tax Rate
Net Income
Memo: EBITDA
Memo: Capex
Balance Sheet
Cash
A/R
Inventory
Prepaid Expenses
PPE
Goodwill
Total Assets
A/P
Accrued Liability
2009A
$159
96
50
4
$309
1,500
0
$1,809
Debit
Credit
($149)
2009PF
$10
$96
$50
$4
$160
$1,500
$1,681
$3,342
1,681
25
63
$89
$25
$63
$89
Existing Debt
Total Liabilities
1,357
$1,446
(1,357)
2,567
$2,567
$2,655
364
$1,809
(364)
686
$686
$3,342
Check
Days Sales Outstanding
Days Payables Outstanding
Days Inventory Turnover
Prepaid as % of Sales
Accrued as % of COGS
37.842876
27.994692
55.677589
0.45%
19.33%
SCF
Net Income
Plus: D&A
Less: Increases in CA
Plus: Increases in CL
CFO
Less: Capex
CADR
Debt Schedule
Term Loan
BoY
Paydown
EoY
Rate
8%
Interest
Senior Sub.
BoY
Paydown
EoY
Rate
12%
Interest
Senior Sub.
BoY
PIK
EoY
PIK
4%
Cash
Interest
8%
Cash
BoY
Change
EoY
Cash
Interest

Total PIK Interest Expense
Total Interest Income
Total Debt
2%
Exit
EBITDA
Exit Multiple
FV
Less: Debt
Plus: Cash
Equity Value
ROIC
IRR
Exit
Multiple
7.0x
5.0x
5.5x
6.0x
6.5x
7.0x
Exit
Multiple
48%
5.0x
5.5x
6.0x
6.5x
7.0x
Credit Ratios
Debt/EBITDA
Net Debt/EBITDA
Debt/(EBITDA-Capex)
Net Debt/(EBITDA-Capex)
Debt/Equity
Debt/Capitalization
Coverage Ratios
EBITDA/Interest
(EBITDA-Capex)/Interest
EBIT/Interest
(EBIT-Capex)/Interest
Capitalization
Current Share Price
FD Shares
% Premium
Acquistiion Share Price
Purchase Price
Plus: Debt
Less: Cash
FV
Purchase Accounting
Purchase Price
Book Value
Plus Fees
Plus: Existing Goodwill
New Goodwill
Uses
Purchase Equity
Refinance Debt
Advisory Fees
Financing Fees
Total Uses
$30.00
50
35.0%
40.5
2025
2025
2025
(364)
1,661
20
0
1,681
2025
1,357
15
5
3402.23
Rate
8%
12%
12%
Year 1
2010E
7.3512233
3.00%
149.5
15.00%
$1,099
Year 2
Year 3
Year 4
Year 5
2011E
2012E
2013E
2014E
7.57176 7.7989128 8.0328802 8.2738666
3.00%
3.00%
3.00%
3.00%
168.1875 185.00625 198.88172
12.50%
10.00%
7.50%
$1,273
($388.26)
($449.89)
$710.75
64.7%
$823.58
64.7%
-10
-10
$1,443
($509.73)
$1,598
($564.39)
208.8258
5.00%
$1,728
($610.39)
$933.12 $1,033.20 $1,117.40

64.7%
64.7%
64.7%
-10
-10
-10
($102.64)
9.3%
($118.93)
9.3%
($134.75)
9.3%
($149.20)
9.3%
($161.36)
9.3%
$598.11
54.4%
$694.65
54.5%
$788.37
54.6%
$873.99
54.7%
$946.04
54.8%
-239.9326 -223.4979 -199.9901 -170.8458 -133.1638

358
471
588
703
813
-143.2722 -188.4613 -235.3518 -281.2596 -325.1507

40%
40%
40%
40%
40%
215
283
353
422
488
608
(10)
705
(10)
798
(10)
884
(10)
956
(10)
2010E
10
$210.77
$47.87
$4.93
$274
2011E
10
$244.23
$55.47
$5.71
$315
2012E
10
$276.71
$62.84
$6.47
$356
2013E
10
$306.39
$69.58
$7.16
$393
2014E
10
$331.36
$75.25
$7.75
$424
1,500
$1,681
$3,455
1,500
$1,681
$3,497
1,500
$1,681
$3,537
1,500
$1,681
$3,574
1,500
$1,681
$3,606
$69.14
$75.05
$144
$80.12
$86.97
$167
$90.77
$98.53
$189
$100.51
$109.10
$210
$108.70
$117.99
$227
2410
$2,554
2146
$2,313
1811
$2,001
1406
$1,616
933
$1,159
901
$3,455
1184
$3,497
1537
$3,537
1959
$3,574
2446
$3,606
70
65
45
0.45%
19.33%
70
65
45
0.45%
19.33%
70
65
45
0.45%
19.33%
70
65
45
0.45%
19.33%
70
65
45
0.45%
19.33%
2010E
215
10
10
(113)
56
178
2011E
283
10
11
(42)
23
284
2012E
353
10
11
(41)
22
356
2013E
422
10
12
(37)
20
427
2014E
488
10
12
(31)
17
496
(10)
168
(10)
274
(10)
346
(10)
417
(10)
486
CIRC
1
1540.1769 1372.5163 1098.0957 752.35875 335.72717
(168)
(274)
(346)
(417)
(336)
1372.5163 1098.0957 752.35875 335.72717
0
116.50773 98.824481 74.018179 43.523437 13.429087
770.08845 770.08845 770.08845 770.08845 770.08845

0
0
0
0
(150)
770.08845 770.08845 770.08845 770.08845 620.2199
92.410614 92.410614 92.410614 92.410614 83.418501
256.69615
266.964 277.64256 288.74826 300.29819
10
11
11
12
12
266.964 277.64256 288.74826 300.29819 312.31012
20.946406 21.784262 22.655633 23.561858 24.504332
$10
0
10
10
0
10
10
0
10
10
0
10
10
0
10
0.2
0.2
0.2
0.2
0.2
229.86475 213.01936 189.08443 159.49591 121.35192

10
11
11
12
12
-0.2
-0.2
-0.2
-0.2
-0.2
239.93259 223.49792 199.99013 170.84584 133.16385
2409.5687 2145.8267 1811.1955 1406.1138 932.53001
2010E
2011E
2012E
2013E
2014E
608
705
798
884
956
6.0x
6.0x
6.0x
6.0x
6.0x
3648.6791 4227.9069 4790.2185 5303.9694 5736.2429
-2409.569 -2145.827 -1811.195 -1406.114
-932.53
10
10
10
10
10
1249.1103 2092.0801 2989.023 3907.8556 4813.7129
1.8203126 3.0487618 4.3558652 5.6948683 7.0149626
82.03%
74.61%
63.31%
54.48%
47.64%
2014 ROIC
30.0%
6.3x
7.1x
7.9x
8.7x
9.4x
Entry Premium
32.5%
35.0%
37.5%
5.9x
5.6x
5.3x
6.7x
6.3x
6.0x
7.4x
7.0x
6.7x
8.2x
7.7x
7.3x
8.9x
8.4x
8.0x
40.0%
5.1x
5.7x
6.3x
7.0x
7.6x
2014 IRR
30.0%
44.6%
48.0%
51.1%
54.0%
56.7%
3.9623689
3.9459246
Entry Premium
32.5%
35.0%
37.5%
42.8%
41.2%
39.8%
46.2%
44.6%
43.1%
49.3%
47.6%
46.1%
52.2%
50.5%
48.9%
54.8%
53.1%
51.5%
40.0%
38.3%
41.6%
44.6%
47.4%
49.9%
Multiple
Premium
0.5
0.025
Assumptions
Interest Income
Exit Multiple
Tax Rate
Amortization
Advisory Fees
Financing Fees
Term
Sr. Sub
Mezz
ASP Growth
D&A
Days Receivable
Days Payable
Days Inventory
Sources
Sponsor Equity
New Debt
Cash from B/S
2%
6.0x
40%
5 years
10
15
5
3.0x
1.5x
0.5x
3%
10
70
65
45
Rates
8%
12%
8%/4%
686.2065
2566.9615
149.062
3402.23
Term
Sr. Sub
Mezz
Multiple
$
Cash
PIK
3.0x 1540.1769
8%
1.5x 770.08845
12%
0.5x 256.69615
8%
Rate
0
0
4%
2007A
$4.35
2008A
$5.93
2009A
$7.14
100
120
130
Revenue
$435
$711
$928
COGS
(214)
(284)
(328)
221.29
50.9%
427.59
60.1%
600.04
64.7%
-10
(103)
23.7%
-10
(75)
10.6%
-10
(87)
9.3%
ASP
% Growth
Volume
% Growth
Gross Margins
% Margin
D&A
SG&A
% Margin
8%
12%
12%
Operating Profit
% Margin
Interest Expense
EBT
108
24.9%
342
48.1%
503
54.3%
(77)
(92)
(93)
31
251
411
118
(10)
352
(10)
513
(10)
Taxes
Tax Rate %
Net Income
EBITDA
Memo: Capex
Balance Sheet
Cash
A/R
Inventory
Prepaid Expenses
PPE
Goodwill
Total Assets
A/P
Accrued Liability
2009A
$159
96
50
4
$309
Debit
1,500
0
$1,809
Credit
($149)
1,681
25
63
$89
2009PF
$10
$96
$50
$4
$160
$1,500
$1,681
$3,342
$25
$63
$89
Debt
Total Liabilities
1,357
$1,446
(1,357)
2,567
$2,567
$2,655
364
$1,809
(364)
686
$686
$3,342
Check
A/R Days Outstanding

A/P Days Outstanding
Inv. Days Turnover
Prepaid Exp. % of Sales
Accrued Liab. % of Sales
SCF
Net Income
37.842876
27.994692
55.677589
0.45%
19.33%
Plus: D&A
Plus: Non-cash interest
Less: Inc. in CA
Plus: Inc. in CL
CFO
Capex
CADR
Debt
Term Loan
BoY
Paydown
EoY
Interest
8%
Sr. Sub
BoY
Paydown
EoY
Interest
Mezz
BoY
PIK
EoY
12%
4%
Interest
8%
Cash
BoY
Change
EoY
Interest
Total
Total
Total
Total
Cash Interest Expense

PIK Interest Expense
Interest Income
Interest Expense
Total Debt
2%
Exit
EBITDA
Exit Multiple
FV
Less: Debt
Plus: Cash
Equity Value
ROIC
IRR
Exit
Multiple
7.0x
5.0x
5.5x
6.0x
6.5x
7.0x
Exit
Multiple
48%
5.0x
5.5x
6.0x
6.5x
7.0x
Leverage Ratios
Debt/EBITDA
Net Debt/EBITDA
Debt/(EBITDA-CAPEX)
Net Debt/(EBITDA-CAPEX)
Debt/Equity
Debt/Capitalization
Coverage Ratios
EBITDA/Interest
EBIT/Interest
Capitalization
Current Share Price
FD Shares
% Premium
Acquisition Price
Mkt. Cap.
Plus: Debt
Less: Cash
FV
Uses
Purchase Equity
Refinance Debt
Advisory Fees
Financing Fees
Total Uses
$1,099
35.0%
40.5
2025
1,357
($159)
$3,223.17
Purchase Accounting
Purchase Price
Less: Book Value
Plus: Fees
New Goodwill
2010E
7.3512233
3%
149.5
15.00%
$30.00
50
2025
(364)
1,661
20
0
1,681
2025
1,357
15
5
3402.23
2011E
2012E
2013E
2014E
7.57176 7.7989128 8.0328802 8.2738666
3%
3%
3%
3%
168.1875 185.00625 198.88172 208.8258
12.50%
10.00%
7.50%
5.00%
$1,273
($388.26)
($449.89)
$710.75
64.7%
$823.58
64.7%
-10
($102.64)
9.3%
-10
($118.93)
9.3%
$1,443
($509.73)
$1,598
($564.39)
$1,728
($610.39)
$933.12 $1,033.20 $1,117.40

64.7%
64.7%
64.7%
-10
($134.75)
9.3%
-10
($149.20)
9.3%
-10
($161.36)
9.3%
$598.11
54.4%
$694.65
54.5%
$788.37
54.6%
$873.99
54.7%
$946.04
54.8%
-239.9326 -223.4979 -199.9901 -170.8458 -133.1638

358
471
588
703
813
-143.2722 -188.4613 -235.3518 -281.2596 -325.1507

40%
40%
40%
40%
40%
215
283
353
422
488
608
(10)
705
(10)
798
(10)
884
(10)
956
(10)
2010E
10
$210.77
$47.87
$4.93
$274
2011E
10
$244.23
$55.47
$5.71
$315
2012E
10
$276.71
$62.84
$6.47
$356
2013E
10
$306.39
$69.58
$7.16
$393
2014E
10
$331.36
$75.25
$7.75
$424
1,500
$1,681
$3,455
1,500
$1,681
$3,497
1,500
$1,681
$3,537
1,500
$1,681
$3,574
1,500
$1,681
$3,606
$69.14
$75.05
$144
$80.12
$86.97
$167
$90.77
$98.53
$189
$100.51
$109.10
$210
$108.70
$117.99
$227
2409.5687 2145.8267 1811.1955 1406.1138 932.53001

$2,554
$2,313
$2,001
$1,616
$1,159
$901
$3,455
$1,184
$3,497
$1,537
$3,537
$1,959
$3,574
$2,446
$3,606
70
65
45
0.45%
19.33%
70
65
45
0.45%
19.33%
70
65
45
0.45%
19.33%
70
65
45
0.45%
19.33%
70
65
45
0.45%
19.33%
2010E
215
2011E
283
2012E
353
2013E
422
2014E
488
10
10
(113)
56
178
10
11
(42)
23
284
10
11
(41)
22
356
10
12
(37)
20
427
10
12
(31)
17
496
(10)
168
(10)
274
(10)
346
(10)
417
(10)
486
CIRC KILL
1
1540.1769 1372.5163 1098.0957 752.35875 335.72717
(168)
(274)
(346)
(417)
(336)
1372.5163 1098.0957 752.35875 335.72717
0
116.50773 98.824481 74.018179 43.523437 13.429087
770.08845 770.08845 770.08845 770.08845 770.08845

0
0
0
0
(150)
770.08845 770.08845 770.08845 770.08845 620.2199
92.410614 92.410614 92.410614 92.410614 83.418501
256.69615
266.964 277.64256 288.74826 300.29819
10
11
11
12
12
266.964 277.64256 288.74826 300.29819 312.31012
20.946406 21.784262 22.655633 23.561858 24.504332
$10
0
10
10
0
10
10
0
10
10
0
10
10
0
10
0.2
0.2
0.2
0.2
0.2
229.86475 213.01936 189.08443 159.49591 121.35192

10
11
11
12
12
(0)
(0)
(0)
(0)
(0)
239.93259 223.49792 199.99013 170.84584 133.16385
2409.5687 2145.8267 1811.1955 1406.1138 932.53001
1
2
3
4
5
2010E
2011E
2012E
2013E
2014E
608
705
798
884
956
6.0x
6.0x
6.0x
6.0x
6.0x
3648.6791 4227.9069 4790.2185 5303.9694 5736.2429
-2409.569 -2145.827 -1811.195 -1406.114
-932.53
10
10
10
10
10
1249.1103 2092.0801 2989.023 3907.8556 4813.7129
1.8203126 3.0487618 4.3558652 5.6948683 7.0149626
82.0%
74.6%
63.3%
54.5%
47.6%
2014 ROIC
30.0%
6.3x
7.1x
7.9x
8.7x
9.4x
Premium Paid
32.5%
35.0%
5.9x
5.6x
6.7x
6.3x
7.4x
7.0x
8.2x
7.7x
8.9x
8.4x
37.5%
5.3x
6.0x
6.7x
7.3x
8.0x
Multiple
Premium
0.5
0.025
Multiple
Premium
0.5
0.025
40.0%
5.1x
5.7x
6.3x
7.0x
7.6x
2014 IRR
30.0%
44.6%
48.0%
51.1%
54.0%
56.7%
Premium Paid
32.5%
35.0%
42.8%
41.2%
46.2%
44.6%
49.3%
47.6%
52.2%
50.5%
54.8%
53.1%
37.5%
39.8%
43.1%
46.1%
48.9%
51.5%
40.0%
38.3%
41.6%
44.6%
47.4%
49.9%
2010E
2011E
2012E
2013E
2014E
3.9623689 3.0452327 2.2686173 1.5906356 0.9754085
3.9459246
4.0286167
4.0118975
$2.67
$0.70
2.5345168
2.4928384
2.4928384
Assumptions
Interest Income
2%
Exit Multiple
6.0x
Tax Rate
40%
Amortization
5 years
Minimum Cash Bala
10
Advisory Fees
15
Financing Fees
5
Term
Sr. Sub
Mezz
ASP Growth
D&A
Days Receivable
Days Payable
Days Inventory
Sources
Sponsor Equity
Refinance Debt
Cash from B/S
3.0x
1.5x
0.5x
3%
10
70
65
45
Capitalization
Current Share Price
FD Shares
% Premium
Acquisition Price
Mkt Cap
Plus: Debt
Less: Cash
FV
Rates
8%
12%
8%/4%
Purchase Accounting
Purchase Price
Less: Book Value
Plus: Fees
New Goodwill
Uses
Purchase Equity
Refinance Debt
Advisory Fees
Financing Fees
$686
2,567
149
$3,402
Term
Sr. Sub
Mezz
ASP
Volume
Multiple
3.0x
1.5x
0.5x
$
$1,540
$770
$257
Cash
8%
12%
8%
PIK
0
0
4%
Rate
8%
12%
12%
2007A
$4.35
2008A
$5.93
2009A
$7.14
2010E
$7.35
3.00%
100
120
130
150
15.00%
Revenue
% Growth
$435
$711
63.5%
$928
30.4%
$1,099
18.5%
COGS
(214)
(284)
(328)
(388)
Gross Profit
% Margin
$221
50.9%
$428
60.1%
$600
64.7%
$711
64.7%
D&A
SG&A
% of Sales
(10)
(103)
23.7%
(10)
(75)
10.6%
(10)
(87)
9.3%
(10)
(103)
9.3%
Operating Income
% Margin
$108
24.9%
$342
48.1%
$503
54.3%
$598
54.3%
Interest Expense
(77)
(92)
(93)
(240)
EBT
$31
$251
$411
$358
Taxes
Tax Rate %
(143)
40%
Net Income
$215
Memo: EBITDA
Memo: Capex
118.167 352.398
(10)
(10)
Balance Sheet
Cash
A/R
Inventory
Prepaid Expenses
PPE
Goodwill
Total Assets
A/P
Accrued Liability
513.392
(10)
2009A
$159
96
50
4
$309
1,500
0
$1,809
$608
(10)
Debit
Credit
($149)
1,681
25
63
$89
2009PF
$10
96
50
4
$160
2010E
$10
211
48
5
$274
$1,500
1,681
$3,342
1,500
1,681
$3,455
25
63
$89
69
75
$144
Debt
Total Liabilities
1,357
$1,446
(1,357)
2,567
2,567
$2,655
2,410
$2,554
364
$1,809
(364)
686
686
$3,342
901
$3,455
Check
Days Receivable
Days Payable
Days Inventory
38
28
56
70
65
45
Prepaid % of Sales
Prepaid % of Accrued Liab.
0.45%
19.33%
SCF
Net Income
Plus: D&A
Plus: Non-cash interest
Less: Inc. in CA
Plus: Inc. in CL
CFO
0.45%
19.33%
2010E
$215
10
10
(113)
56
$178
Less: Capex
CADR
(10)
$168
Debt
Term Loan
BoY
Paydown
EoY
Interest
$1,540
(168)
$1,373
Rate
8%
Sr. Sub
BoY
Paydown
EoY
Interest
Mezz
BoY
PIK
EoY
Interest
$770
0
$770
Rate
12%
PIK
4%
Cash
8%
Cash
BoY
Paydown
EoY
Interest
Total Cash Interest

Total PIK Interest
Interest Income
$117
$92
$257
10
$267
$21
$10
0
$10
Rate
2%
$0
$230
10
(0)
$240
Total Debt
$2,410
1
Exit
EBITDA
Exit Multiple
FV
Less: Debt
Plus: Cash
Equity Value
2010E
$608
6.0x
$3,649
(2,410)
10
$1,249
ROIC
IRR
Leverage Multiples
Debt/EBITDA
Net Debt/EBITDA
Debt/(EBITDA-Capex)
Debt/Equity
Debt/Capitalization
Coverage Ratios
EBITDA/Interest
EBIT/Interest
1.8x
82.0%
Exit
Multiple
7.0x
5.0x
5.5x
6.0x
6.5x
7.0x
30.0%
6.3x
7.1x
7.9x
8.7x
9.4x
Exit
Multiple
47.6%
5.0x
5.5x
6.0x
6.5x
7.0x
30.0%
44.6%
48.0%
51.1%
54.0%
56.7%
2010E
4.0x
3.9x
4.0x
4.0x
2.7x
0.7x
2.5x
2.5x
2.5x
$0
Capitalization
Current Share Price
$30.00
50
35.0%
$40.50
$2,025
% Premium
Acquisition Price
$1,357
($159)
$3,223
Purchase Accounting
Purchase Price
Less: Book Value

New Goodwill
Purchase Equity
Refinance Debt
Advisory Fees
Financing Fees
$2,025
(364)
$1,661
20
0
$1,681
$2,025
1,357
15
5
$3,402
2011E
$7.57
3.00%
2012E
$7.80
3.00%
2013E
$8.03
3.00%
2014E
$8.27
3.00%
168
12.50%
185
10.00%
199
7.50%
209
5.00%
$1,273
15.9%
$1,443
13.3%
$1,598
10.7%
$1,728
8.2%
(450)
(510)
(564)
(610)
$824
64.7%
$933
64.7%
$1,033
64.7%
$1,117
64.7%
(10)
(119)
9.3%
(10)
(135)
9.3%
(10)
(149)
9.3%
(10)
(161)
9.3%
$695
54.3%
$788
54.3%
$874
54.3%
$946
54.3%
(223)
(200)
(171)
(133)
$471
$588
$703
$813
(188)
40%
(235)
40%
(281)
40%
(325)
40%
$283
$353
$422
$488
$705
(10)
$798
(10)
$884
(10)
$956
(10)
2011E
$10
244
55
6
$315
2012E
$10
277
63
6
$356
2013E
$10
306
70
7
$393
2014E
$10
331
75
8
$424
1,500
1,681
$3,497
1,500
1,681
$3,537
1,500
1,681
$3,574
1,500
1,681
$3,606
80
87
$167
91
99
$189
101
109
$210
109
118
$227
2,146
$2,313
1,811
$2,001
1,406
$1,616
933
$1,159
1,184
$3,497
1,537
$3,537
1,959
$3,574
2,446
$3,606
70
65
45
70
65
45
70
65
45
70
65
45
0.45%
19.33%
0.45%
19.33%
0.45%
19.33%
0.45%
19.33%
2011E
$283
10
11
(42)
23
$284
2012E
$353
10
11
(41)
22
$356
2013E
$422
10
12
(37)
20
$427
2014E
$488
10
12
(31)
17
$496
(10)
$274
(10)
$346
(10)
$417
(10)
$486
Circ Kill
1
$1,373
(274)
$1,098
$1,098
(346)
$752
$752
(417)
$336
$336
(336)
$0
$13
$99
$74
$44
$770
0
$770
$770
0
$770
$770
0
$770
$92
$92
$92
$83
$267
11
$278
$278
11
$289
$289
12
$300
$300
12
$312
$22
$23
$24
$25
$10
0
$10
$10
0
$10
$10
0
$10
$10
0
$10
$0
$0
$0
$0
$213
11
(0)
$189
11
(0)
$159
12
(0)
$770
(150)
$620
$121
12
(0)
$223
$200
$171
$133
$2,146
$1,811
$1,406
$933
2011E
$705
6.0x
$4,228
(2,146)
10
$2,092
2012E
$798
6.0x
$4,790
(1,811)
10
$2,989
2013E
$884
6.0x
$5,304
(1,406)
10
$3,908
2014E
$956
6.0x
$5,736
(933)
10
$4,814
3.0x
74.6%
4.4x
63.3%
5.7x
54.5%
7.0x
47.6%
37.5%
5.3x
6.0x
6.7x
7.3x
8.0x
40.0%
5.1x
5.7x
6.3x
7.0x
7.6x
37.5%
39.8%
43.1%
46.1%
48.9%
51.5%
40.0%
38.3%
41.6%
44.6%
47.4%
49.9%
2014 ROIC
32.5%
5.9x
6.7x
7.4x
8.2x
8.9x
Premium
35.0%
5.6x
6.3x
7.0x
7.7x
8.4x
2014 IRR
32.5%
42.8%
46.2%
49.3%
52.2%
54.8%
Premium
35.0%
41.2%
44.6%
47.6%
50.5%
53.1%
2011E
3.0x
3.0x
3.1x
3.1x
1.8x
0.6x
2012E
2.3x
2.3x
2.3x
2.3x
1.2x
0.5x
2013E
1.6x
1.6x
1.6x
1.6x
0.7x
0.4x
2014E
1.0x
1.0x
1.0x
1.0x
0.4x
0.3x
3.2x
3.1x
3.1x
4.0x
3.9x
3.9x
5.2x
5.1x
5.1x
7.2x
7.1x
7.1x
Multiple
Premium
0.5
0.025
Assumptions
Interest Income
2%
Exit Multiple
6.0x
Tax Rate
40%
Amortization
5 years
Minimum Cash Bala
10
Advisory Fees
15
Financing Fees
5
Term
Sr. Sub
Mezz
ASP Growth
D&A
Days Receivable
Days Payable
Days Inventory
Sources
Sponsor Equity
New Debt
Cash from B/S
3.0x
1.5x
0.5x
3%
10
70
65
45
Rates
8%
12%
8%/4%
686.2065
2566.9615
149.062
3402.23
Term
Sr. Sub
Mezz
Multiple
$
3.0x
1540.1769
1.5x
770.08845
0.5x
256.69615
ASP
Volume
Cash
8%
12%
8%
PIK
0
0
4%
2007A
$4.35
2008A
$5.93
2009A
$7.14
100
120
130
Revenue
% Growth
$435
$711
63.5%
$928
30.4%
COGS
(214)
(284)
(328)
221
50.9%
428
60.1%
600
64.7%
-10
-10
-10
Gross Profit
% Margin
D&A
SG&A
(103)
23.7%
(75)
10.6%
(87)
9.3%
Operating Profit
% Margin
108
24.9%
342
48.1%
503
54.3%
(77)
(92)
(93)
31
251
411
118
(10)
352
(10)
513
(10)
Interest Expense
EBT
Taxes
Tax Rate %
Net Income
Memo: EBITDA
Memo: Capex
Balance Sheet
Cash
A/R
Inventory
Prepaid Expenses
PPE
Goodwill
Total Assets
A/P
Accrued Liability
2009A
$159
96
50
4
$309
1,500
0
$1,809
Debit
Credit
($149)
2009PF
$10
$96
$50
$4
$160
$1,500
$1,681
$3,342
1,681
25
63
$89
$25
$63
$89
Debt
Total Liabilities
1,357
$1,446
(1,357)
2,567
$2,567
$2,655
364
$1,809
(364)
686
$686
$3,342
Check
Days Receivable
Days Payable
Days Inventory
Accrued Liab. % of COGS
SCF
38
28
56
0.45%
19.33%
Net Income
Plus: D&A
Plus: Non-cash Interest
Less: Inc. in CA
negative
Plus: Inc. in CL
CFO
Less: Capex
CADR
Debt
Term Loan
BoY
Paydown
EoY
Rate
Interest
8%
Sr. Sub
BoY
Paydown
EoY
Rate
Interest
Mezz
BoY
Paydown
EoY
12%
PIK
4%
Cash
Interest
8%
Cash
BoY
Paydown
EoY
Rate
Interest
Total Cash Interest

Total PIK Interest
Interest Income
Total Debt
Exit
2%
EBITDA
Exit Multiple
FV
Less: Debt
Plus: Cash
Equity Value
ROIC
IRR
Exit
Multiple
7.0x
5
5.5
6
6.5
7
Exit
Multiple
47.6%
5
5.5
6
6.5
7
ASP
Volume
Revenue
Change
Volume 1
ASP 1
Volume 1
ASP 1
2007A
$4.35
2008A
$5.93
100
120
$435
$711
$928
$1,099
$1,273
$1,443
$276
$216
$171
$174
$169
$189.16
$87.03
$276.19
$157.19
$59.28
$216.47
$32.01
$139.17
$171.18
$37.09
$137.38
$174.47
$42.02
$127.35
$169.37
68.5%
31.5%
100.0%
2009A
2010E
$7.14 7.3512233
3.00%
130
149.5
15.00%
72.6%
27.4%
100.0%
18.7%
81.3%
100.0%
2011E
2012E
7.57176 7.7989128
3.00%
3.00%
168.1875 185.00625
12.50%
10.00%
21.3%
78.7%
100.0%
24.8%
75.2%
100.0%
Volume 2
ASP 2
Volume 2
ASP 2
Avg. Volume
Avg. ASP
Leverage Ratios
Debt/EBITDA
Net Debt/EBITDA
Debt/(EBITDA-Capex)
Debt/Equity
Debt/Capitalization
Coverage Ratios
EBITDA/Interest
EBIT/Interest
47 mins
$157.63
$118.56
$276.19
$145.10
$71.37
$216.47
$27.83
$143.35
$171.18
$32.97
$141.50
$174.47
$38.20
$131.17
$169.37
57.1%
42.9%
100.0%
67.0%
33.0%
100.0%
16.3%
83.7%
100.0%
18.9%
81.1%
100.0%
22.6%
77.4%
100.0%
62.8%
37.2%
69.8%
30.2%
17.5%
82.5%
20.1%
79.9%
23.7%
76.3%
Capitalization
Current Share Price
FD Shares
$30.00
50
35.0%
40.5
2025
1,357
($159)
3223.168
% Premium
Acquisition Price
Market Cap.
Plus: Debt
Less: Cash
FV
Purchase Accounting
Purchase Price
2025
Less: Book Value
(364)
Excess Purchase Price 1661.314
Plus: Fees
20
0
New Goodwill
1681.314
Uses
Purchase Equity
Refinance Debt
Advisory Fees
Financing Fees
Total Uses
2025
1,357
15
5
3402.23
Rate
8%
12%
12%
2010E
7.3512233
3.00%
149.5
15.00%
2011E
2012E
2013E
2014E
7.57176 7.7989128 8.0328802 8.2738666
3.00%
3.00%
3.00%
3.00%
168.1875 185.00625 198.88172 208.8258
12.50%
10.00%
7.50%
5.00%
$1,099
18.5%
$1,273
15.9%
$1,443
13.3%
$1,598
10.7%
$1,728
8.2%
($388.26)
($449.89)
($509.73)
($564.39)
($610.39)
$710.75
64.7%
$823.58
64.7%
-10
-10
$933.12 $1,033.20 $1,117.40

64.7%
64.7%
64.7%
-10
-10
-10
($102.64)
9.3%
($118.93)
9.3%
($134.75)
9.3%
($149.20)
9.3%
($161.36)
9.3%
598
54.3%
695
54.3%
788
54.3%
874
54.3%
946
54.3%
-239.9326 -223.4979 -199.9901 -170.8458 -133.1638

358
471
588
703
813
-143.2722 -188.4613 -235.3518 -281.2596 -325.1507

40%
40%
40%
40%
40%
215
283
353
422
488
608
(10)
705
(10)
798
(10)
884
(10)
956
(10)
2010E
10
$210.77
$47.87
$4.93
$274
2011E
10
$244.23
$55.47
$5.71
$315
2012E
10
$276.71
$62.84
$6.47
$356
2013E
10
$306.39
$69.58
$7.16
$393
2014E
10
$331.36
$75.25
$7.75
$424
1,500
$1,681
$3,455
1,500
$1,681
$3,497
1,500
$1,681
$3,537
1,500
$1,681
$3,574
1,500
$1,681
$3,606
$69.14
$75.05
$144
$80.12
$86.97
$167
$90.77
$98.53
$189
$100.51
$109.10
$210
$108.70
$117.99
$227
2409.5687 2145.8267 1811.1955 1406.1138 932.53001

$2,554
$2,313
$2,001
$1,616
$1,159
$901
$3,455
$1,184
$3,497
$1,537
$3,537
$1,959
$3,574
$2,446
$3,606
70
65
45
0.45%
19.33%
70
65
45
0.45%
19.33%
70
65
45
0.45%
19.33%
70
65
45
0.45%
19.33%
70
65
45
0.45%
19.33%
2010E
2011E
2012E
2013E
2014E
214.91
10
10
($113.21)
$55.69
178
282.69
10
11
($41.84)
$22.89
284
353.03
10
11
($40.62)
$22.22
356
421.89
10
12
($37.11)
$20.30
427
487.73
10
12
($31.23)
$17.08
496
(10)
167.66
(10)
274.42
(10)
345.74
(10)
416.63
(10)
485.60
CIRC KILL
1
1540.1769 1372.5163 1098.0957 752.35875 335.72717

(168)
(274)
(346)
(417)
(336)
1372.5163 1098.0957 752.35875 335.72717
0
116.50773 98.824481 74.018179 43.523437 13.429087
770.08845 770.08845 770.08845 770.08845 770.08845

0
0
0
0
(150)
770.08845 770.08845 770.08845 770.08845 620.2199
92.410614 92.410614 92.410614 92.410614 83.418501
256.69615
266.964 277.64256 288.74826 300.29819
10
11
11
12
12
266.964 277.64256 288.74826 300.29819 312.31012
20.946406 21.784262 22.655633 23.561858 24.504332
$10
0
10
10
0
10
10
0
10
10
0
10
10
0
10
0.2
0.2
0.2
0.2
0.2
229.86475 213.01936 189.08443 159.49591 121.35192

10
11
11
12
12
-0.2
-0.2
-0.2
-0.2
-0.2
239.93259 223.49792 199.99013 170.84584 133.16385
2409.5687 2145.8267 1811.1955 1406.1138 932.53001
1
2010E
2
2011E
3
2012E
4
2013E
5
2014E
608
705
798
884
956
6.0x
6.0x
6.0x
6.0x
6.0x
3648.6791 4227.9069 4790.2185 5303.9694 5736.2429
-2409.569 -2145.827 -1811.195 -1406.114
-932.53
10
10
10
10
10
1249.1103 2092.0801 2989.023 3907.8556 4813.7129
1.8x
82.03%
3.0x
74.61%
4.4x
63.31%
5.7x
54.48%
7.0x
47.64%
Purchase Premium
32.5%
35.0%
37.5%
7.4x
7.0x
6.7x
7.4x
7.0x
6.7x
7.4x
7.0x
6.7x
7.4x
7.0x
6.7x
7.4x
7.0x
6.7x
40.0%
6.3x
6.3x
6.3x
6.3x
6.3x
2014 ROIC
30.0%
7.9x
7.9x
7.9x
7.9x
7.9x
2014 IRR
30.0%
51.1%
51.1%
51.1%
51.1%
51.1%
Purchase Premium
32.5%
35.0%
49.3%
47.6%
49.3%
47.6%
49.3%
47.6%
49.3%
47.6%
49.3%
47.6%
2013E
2014E
8.0328802 8.2738666
3.00%
3.00%
198.88172 208.8258
7.50%
5.00%
$1,598
$1,728
$155
$130
$46.53
$108.21
$154.75
$50.32
$79.88
$130.20
30.1%
69.9%
100.0%
38.7%
61.3%
100.0%
37.5%
46.1%
46.1%
46.1%
46.1%
46.1%
40.0%
44.6%
44.6%
44.6%
44.6%
44.6%
Multiple Step
Premium Step
0.5x
2.5%
$43.29
$111.46
$154.75
$47.93
$82.28
$130.20
28.0%
72.0%
100.0%
36.8%
63.2%
100.0%
29.0%
71.0%
37.7%
62.3%
2010E
4.0x
3.9x
4.0x
4.0x
2.7x
0.7x
2011E
3.0x
3.0x
3.1x
3.1x
1.8x
0.6x
2012E
2.3x
2.3x
2.3x
2.3x
1.2x
0.5x
2013E
1.6x
1.6x
1.6x
1.6x
0.7x
0.4x
2014E
1.0x
1.0x
1.0x
1.0x
0.4x
0.3x
2.5x
2.5x
2.5x
3.2x
3.1x
3.1x
4.0x
3.9x
3.9x
5.2x
5.1x
5.1x
7.2x
7.1x
7.1x
Assumptions
Interest Income
2%
Exit Multiple
6.0x
Tax Rate
40%
Amortization
5 years
Minimum Cash Bala
10
Advisory Fees
15
Financing Fees
5
Term
Sr. Sub
Mezz
ASP Growth
D&A
Days Receivable
Days Payable
Days Inventory
3.0x
1.5x
0.5x
3%
10
70
65
45
Sources
Sponsor Equity
New Debt
Cash from B/S
Rates
8%
12%
8%/4%
FV/EBITDA
Debt/EBITDA
Goodwill
Purchase Price
Less: Book Value
Plus: Fees
New Goodwill
Uses
Purchase Equity
Refinance Debt
Advisory Fees
Financing Fees
3402.23
Multiple
$
3.0x
1540.18
1.5x
770.088
0.5x
256.696
ASP
% Growth
Volume
% Growth
% Premium
Acquisition Price
Mkt. Cap
Plus: Debt
Less: Cash
FV
686.207
2566.96
149.062
Total Sources
Term
Sr. Sub
Mezz
Capitalization
Current Share Price
FD Shares
Cash
8%
12%
8%
PIK
0
0
4%
2007A
$4.35
2008A
$5.93
2009A
$7.14
100
120
130
Rate
8%
12%
12%
2010E
7.3512233
3%
149.5
15.00%
Revenue
% Growth
$435
$711
63.5%
$928
30.4%
$1,099
18.5%
COGS
(214)
(284)
(328)
($388.26)
221.29
50.9%
427.59
60.1%
600.04
64.7%
$710.75
64.7%
Gross Profit
Gross Margin %
D&A
SG&A
% of Sales
EBIT
Operating Margin
-10
(103)
23.7%
-10
(75)
10.6%
-10
(87)
9.3%
-10
($102.64)
9.3%
108.167 342.398
24.9%
48.1%
503.392
54.3%
598.113
54.3%
(93)
($240)
Interest Expense
EBT
(77)
(92)
31.435 250.631
410.715
358.181
Taxes
Tax Rate%
-143.2722
40%
Net Income
214.908
Memo: EBITDA
Memo: Capex
118.167 352.398
(10)
(10)
Balance Sheet
Cash
A/R
Inventory
Prepaid Expenses
PPE
Goodwill
Total Assets
A/P
Accrued Liability
513.392
(10)
2009A
$159
96
50
4
$309
1,500
0
$1,809
608.113
(10)
Debit
Credit
($149)
1,681
25
63
$89
2009PF
$10
$96
$50
$4
$160
2010E
$10
$210.77
$47.87
$4.93
$274
$1,500
$1,681
$3,342
1,500
$1,681
$3,455
$25
$63
$89
$69.14
$75.05
$144
Debt
Total Liabilities
1,357
$1,446
(1,357)
2,567
$2,567
$2,655
$2,410
$2,554
364
$1,809
(364)
686
$686
$3,342
$901
$3,455
Check
Drivers
Days Receivable
Days Payable
Days Inventory
Accrued Liab % of COGS
38
28
56
0.4%
19.3%
70
65
45
0.4%
19.3%
SCF
Net Income
Plus: D&A
Plus: Non-Cash Int. Expense
Less: Inc. in CA
neg
Plus: Inc. in CL
CFO
214.908
10
10
($113.21)
55.69
177.661
Less: Capex
CADR
(10)
167.661
Debt
Term Loan
BoY
Paydown
EoY
$1,540
(168)
$1,373
Rate
Interest
8%
Sr Sub
BoY
Paydown
EoY
$117
$770
0
$770
Rate
Interest
Mezz
BoY
Paydown
EoY
12%
$92
4%
$257
10
$267
8%
$21
PIK
Cash
Interest
Cash
BoY
Paydown
EoY
Interest

Total PIK Interest Expense
Interest Income
$10
0
$10
2%
$0
$230
10
($0)
$240
Total Debt
$2,410
1
Exit
EBITDA
Exit Multiple
FV
Less: Debt
Plus: Cash
Equity Value
2010E
608.113
6.0x
3648.6791
($2,410)
$10
1249.1103
ROIC
IRR
1.8x
82.0%
Exit
Multiple
7.0x
5.0x
5.5x
6.0x
6.5x
7.0x
30.0%
6.3x
7.1x
7.9x
8.7x
9.4x
Exit
Multiple
47.6%
5.0x
5.5x
6.0x
6.5x
7.0x
30.0%
44.6%
48.0%
51.1%
54.0%
56.7%
Leverage Ratios
Debt/EBITDA
Net Debt/EBITDA
Debt/(EBITDA-Capex)
Debt/Equity
Debt/Capitalization
En
2010E
4.0x
3.9x
4.0x
4.0x
2.7x
0.7x
Coverage Ratios
EBITDA/Interest
EBIT/Interest
2007A
En
2.5x
2.5x
2.5x
2008A
2009A
2010E
2011E
2012E
2013E
ASP
% Growth
Volume
% Growth
Revenue
Change
$4.35
$5.93
100
120
$435
$711
$276
$7.14 7.3512233
3%
130
149.5
15.00%
$928
$216
$1,099
$171
7.57176 7.7989128 8.0328802

3%
3%
3%
168.1875 185.00625 198.88172
12.50%
10.00%
7.50%
$1,273
$174
$1,443
$169
$1,598
$155
ASP 1
Volume 1
189.161
$87.03
276.194
ASP 1
Volume 1
68.5%
31.5%
100.0%
ASP 2
Volume 2
157.634
$118.56
276.194
ASP 2
Volume 2
57.1%
42.9%
100.0%
67.0%
33.0%
100.0%
16.3%
83.7%
100.0%
18.9%
81.1%
100.0%
22.6%
77.4%
100.0%
28.0%
72.0%
100.0%
62.8%
37.2%
69.8%
30.2%
17.5%
82.5%
20.1%
79.9%
23.7%
76.3%
29.0%
71.0%
Avg. ASP
Avg. Volume
157.1869 32.009938 37.091516 42.024688 46.531835

$59.28
$139.17
$137.38
$127.35
$108.21
216.4667 171.18358 174.4675 169.37223 154.74541
72.6%
27.4%
100.0%
18.7%
81.3%
100.0%
21.3%
78.7%
100.0%
24.8%
75.2%
100.0%
30.1%
69.9%
100.0%
145.0956 27.834729 32.970237 38.204262 43.285428

$71.37
$143.35
$141.50
$131.17
$111.46
216.4667 171.18358 174.4675 169.37223 154.74541
Capitalization
Current Share Price
% Premium
Acquisition Price
FV/EBITDA
Debt/EBITDA
$30.00
50
35.0%
40.5
2025
1,357
($159)
3223.168
6.3x
2.6x
Purchase Price
Less: Book Value
2025
(364)
1661.314
20
0
New Goodwill
1681.314
Purchase Equity
Refinance Debt
Advisory Fees
Financing Fees
2025
1,357
15
5
3402.23
2011E
2012E
2013E
2014E
7.57176 7.7989128 8.0328802 8.2738666
3%
3%
3%
3%
168.1875 185.00625 198.88172 208.8258
12.50%
10.00%
7.50%
5.00%
$1,273
15.9%
$1,443
13.3%
$1,598
10.7%
$1,728
8.2%
($449.89)
($509.73)
($564.39)
($610.39)
$823.58
64.7%
$933.12 $1,033.20 $1,117.40

64.7%
64.7%
64.7%
-10
($118.93)
9.3%
-10
($134.75)
9.3%
-10
($149.20)
9.3%
-10
($161.36)
9.3%
694.651
54.3%
788.370
54.3%
873.995
54.3%
946.040
54.3%
($223)
($200)
($171)
($133)
471.153
588.380
703.149
812.877
-188.4613 -235.3518 -281.2596 -325.1507

40%
40%
40%
40%
282.692
353.028
421.889
487.726
704.651
(10)
798.370
(10)
883.995
(10)
956.040
(10)
2011E
$10
$244.23
$55.47
$5.71
$315
2012E
$10
$276.71
$62.84
$6.47
$356
2013E
$10
$306.39
$69.58
$7.16
$393
2014E
$10
$331.36
$75.25
$7.75
$424
1,500
$1,681
$3,497
1,500
$1,681
$3,537
1,500
$1,681
$3,574
1,500
$1,681
$3,606
$80.12
$86.97
$167
$90.77
$98.53
$189
$100.51
$109.10
$210
$108.70
$117.99
$227
$2,146
$2,313
$1,811
$2,001
$1,406
$1,616
$933
$1,159
$1,184
$3,497
$1,537
$3,537
$1,959
$3,574
$2,446
$3,606
70
65
45
0.4%
19.3%
70
65
45
0.4%
19.3%
70
65
45
0.4%
19.3%
70
65
45
0.4%
19.3%
282.692
10
11
($41.84)
22.89
284.421
353.028
10
11
($40.62)
22.22
355.737
421.889
10
12
($37.11)
20.30
426.632
487.726
10
12
($31.23)
17.08
495.596
(10)
274.421
(10)
345.737
(10)
416.632
(10)
485.596
CIRC KILL
1
$1,373
(274)
$1,098
$1,098
(346)
$752
$752
(417)
$336
$336
(336)
$0
$13
$99
$74
$44
$770
0
$770
$770
0
$770
$770
0
$770
$92
$92
$92
$83
$267
11
$278
$278
11
$289
$289
12
$300
$300
12
$312
$22
$23
$24
$25
$10
0
$10
$10
0
$10
$10
0
$10
$10
0
$10
$0
$0
$0
$0
$213
11
($0)
$223
$189
11
($0)
$200
$159
12
($0)
$171
$770
(150)
$620
$121
12
($0)
$133
$2,146
$1,811
$1,406
$933
2011E
2012E
2013E
2014E
704.651
798.370
883.995
956.040
6.0x
6.0x
6.0x
6.0x
4227.9069 4790.2185 5303.9694 5736.2429
($2,146)
($1,811)
($1,406)
($933)
$10
$10
$10
$10
2092.0801 2989.023 3907.8556 4813.7129
3.0x
74.6%
4.4x
63.3%
5.7x
54.5%
7.0x
47.6%
37.5%
5.3x
6.0x
6.7x
7.3x
8.0x
40.0%
5.1x
5.7x
6.3x
7.0x
7.6x
37.5%
39.8%
43.1%
46.1%
48.9%
51.5%
40.0%
38.3%
41.6%
44.6%
47.4%
49.9%
2014 ROIC
Entry Premium
32.5%
35.0%
5.9x
5.6x
6.7x
6.3x
7.4x
7.0x
8.2x
7.7x
8.9x
8.4x
2014 IRR
Entry
32.5%
42.8%
46.2%
49.3%
52.2%
54.8%
Premium
35.0%
41.2%
44.6%
47.6%
50.5%
53.1%
2011E
3.0x
3.0x
3.1x
3.1x
1.8x
0.6x
2012E
2.3x
2.3x
2.3x
2.3x
1.2x
0.5x
2013E
1.6x
1.6x
1.6x
1.6x
0.7x
0.4x
2014E
1.0x
1.0x
1.0x
1.0x
0.4x
0.3x
3.2x
3.1x
3.1x
4.0x
3.9x
3.9x
5.2x
5.1x
5.1x
7.2x
7.1x
7.1x
2014E
Multiple Step
Premium Step
0.5
0.025
8.2738666
3%
208.8258
5.00%
$1,728
$130
50.32418
$79.88
130.20383
38.7%
61.3%
100.0%
47.927791
$82.28
130.20383
36.8%
63.2%
100.0%
37.7%
62.3%

LBO Test - 75

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LBO Test - 75

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Assumptions

Income Statement 2007A

Cash Availiable for Debt Paydown

(167.7) (274.4) (345.7)

Debt Payment Schdule

1,540.2 1,372.5 1,098.1

Total Interest Expense

Cash Less Min. Bal

Cash Availiable for Debt Payment

Statement of Cash Flow

Debt Payment Schedule

1,500.0 1,500.0 1,500.0

1,536.8 1,958.7 2,446.4

Cash Available for Debt Repayment

$770.09 $770.09 $770.09

$256.70 $266.96 $277.64

PIK Interest Rate

Net Working Capital

-199.99 -170.846 -133.164

80.1176 90.7732 100.509

770.088 770.088 770.088 770.088

266.964 277.643 288.748 300.298

213.019 189.084 159.496 121.352

PIK Interest Rate

Total Cash Interest Expense

168.188 185.006 198.882 208.826

-10.4786 -10.9057 -11.3499 -11.8119

-273.669 -310.986 -345.058 -373.691

80.1176 90.7732 100.509

1234.6 832.365 373.178

82.6785 48.2217 14.9271

770.088 770.088 770.088 630.937

266.964 277.643 288.748 300.298

Total Cash Interest Expense

$933.12 $1,033.20 $1,117.40

-239.9326 -223.4979 -199.9901 -170.8458 -133.1638

-143.2722 -188.4613 -235.3518 -281.2596 -325.1507

770.08845 770.08845 770.08845 770.08845 770.08845

229.86475 213.01936 189.08443 159.49591 121.35192

A/R Days Outstanding

Cash Interest Expense

$933.12 $1,033.20 $1,117.40

-239.9326 -223.4979 -199.9901 -170.8458 -133.1638

-143.2722 -188.4613 -235.3518 -281.2596 -325.1507

2409.5687 2145.8267 1811.1955 1406.1138 932.53001

770.08845 770.08845 770.08845 770.08845 770.08845

229.86475 213.01936 189.08443 159.49591 121.35192

Total Cash Interest

Net Interest Expense

Plus: Existing Goodwill

Total Cash Interest

$933.12 $1,033.20 $1,117.40

-239.9326 -223.4979 -199.9901 -170.8458 -133.1638

-143.2722 -188.4613 -235.3518 -281.2596 -325.1507

2409.5687 2145.8267 1811.1955 1406.1138 932.53001

1540.1769 1372.5163 1098.0957 752.35875 335.72717

770.08845 770.08845 770.08845 770.08845 770.08845

229.86475 213.01936 189.08443 159.49591 121.35192

Total Cash Interest Expense

7.57176 7.7989128 8.0328802

157.1869 32.009938 37.091516 42.024688 46.531835

145.0956 27.834729 32.970237 38.204262 43.285428

$933.12 $1,033.20 $1,117.40