sample financial model

__FDSCACHE__
Pat McFarlan: &+D&-'+%'*',*'*+'.*+''+.)+')+.&'()('')!(''%(%')+,+,%)*)+*-*-%$-)+++*'++&*+*&'+2-%'*,'*'*+'+.)+')+.&D'(+)('')(''%)(''D(%+,)+,%*)*+,*)*-%$*DD-)+++++&'0+++&+&-%'D+'*',*+'+.)+'')+.+'+).&(''()(''%)3(''(%,) +,)*1+,%*)*-%.*-)RY+$+-+++D&'+++PThis sheet contains Factset binary data for use with this workbook's =FDS codes. Modifying the worksheet's contents may damage the workbook's =FDS functionality.
Pat McFarlan: 12105

Model

Fractional years per period1.001.001.001.001.001.00

xIncome Statement

MRYFiscal Years Ending December 31,($ in millions)201220132014201520162017

Total revenue$440.8$462.8$486.0$510.3$535.8$562.6COGS234.4246.1258.4271.3284.9299.2Gross profit206.4216.7227.6238.9250.9263.4SG&A79.683.687.892.196.8101.6EBITDA126.8133.1139.8146.8154.1161.8Depreciation14.014.715.416.217.017.9Amortization11.611.611.611.62.70.0Stock-based comp10.811.311.912.513.113.8EBIT90.495.5100.9106.5121.3130.2EBITA112.8118.4124.4130.6137.1144.0Interest (income) / expenseCashNA(0.4)(0.6)(0.8)(1.0)(1.2)Revolver interestNA1.20.00.00.00.0Revolver undrawn commitment feeNA0.40.50.50.50.5Senior credit facilityNA0.00.00.00.00.0Subordinated noteNA3.83.83.83.83.8Convertible bondNA18.118.919.820.720.7Interest (income) / expense19.023.022.623.324.023.8Equity income in affiliates0.00.00.00.00.00.0Other (income) / expense0.00.00.00.00.00.0Income before taxes71.472.578.383.297.3106.3Provision for tax28.429.031.333.338.942.5GAAP net income43.043.547.049.958.463.8Net income attributable to noncontrolling interests0.00.00.00.00.00.0Preferred dividends0.00.00.00.00.00.0GAAP net income available to common$43.0$43.5$47.0$49.9$58.4$63.8

GAAP to cash reconciliationAmortization$7.0$7.0$7.0$7.0$1.60.0Stock-based comp6.56.87.17.57.98.3One-time charges0.00.00.00.00.00.0Cash net income available to common$56.5$57.2$61.1$64.4$67.9$72.1

GAAP diluted EPS$1.22$1.23$1.33$1.41$1.34$1.47Cash diluted EPS$1.60$1.62$1.73$1.82$1.56$1.66

Capital expenditures$15.2$16.0$16.8$17.6$18.5$19.4Common dividend per share$0.01$0.01$0.01$0.01$0.01$0.01

Key Performance Metrics & Drivers

Sales growth4.9%5.0%5.0%5.0%5.0%5.0%GAAP earnings growthNA1.1%8.0%6.3%16.9%9.3%Cash earnings growthNA1.3%6.7%5.4%5.4%6.2%

COGS / sales53.2%53.2%53.2%53.2%53.2%53.2%SG&A / sales18.1%18.1%18.1%18.1%18.1%18.1%Depreciation / sales3.2%3.2%3.2%3.2%3.2%3.2%Amortization / sales2.6%2.5%2.4%2.3%0.5%0.0Stock-based comp / sales2.5%2.5%2.5%2.5%2.5%2.5%Capex / sales3.4%3.4%3.4%3.4%3.4%3.4%

Gross margin46.8%46.8%46.8%46.8%46.8%46.8%EBITDA margin28.8%28.8%28.8%28.8%28.8%28.8%EBIT margin20.5%20.6%20.8%20.9%22.6%23.1%EBITA margin25.6%25.6%25.6%25.6%25.6%25.6%GAAP net margin9.8%9.4%9.7%9.8%10.9%11.3%Cash net margin12.8%12.4%12.6%12.6%12.7%12.8%

ROIC17.0%16.1%14.5%13.3%13.2%12.5%ROE38.0%25.9%20.8%17.3%16.2%14.6%ROA9.3%8.0%7.7%7.2%7.6%7.5%

Tax rate39.8%40.0%40.0%40.0%40.0%40.0%

xBalance Sheet


Assets

Cash and equivalents[$$]157.1[$$]238.7[$$]313.9[$$]392.9[$$]461.9[$$]534.0Accounts receivable136.4143.3150.4157.9165.8174.1Inventory0.00.00.00.00.00.0Deferred tax asset, current8.89.39.710.210.711.3Other current assets8.28.69.19.510.010.5Total current assets310.6399.9483.1570.6648.4729.9PP&E, gross44.060.076.794.3112.8132.2( ) Accumulated depreciation(6.0)(20.7)(36.2)(52.4)(69.4)(87.3)PP&E, net38.039.240.641.943.444.9Goodwill61.161.161.161.161.161.1Other intangible assets37.525.914.32.70.00.0Equity investments0.00.00.00.00.00.0Other assets14.314.314.314.314.314.3Total assets[$$]461.4[$$]540.4[$$]613.4[$$]690.6[$$]767.2[$$]850.2

Liabilities & Shareholders' Equity

Accounts payable[$$]20.7[$$]21.7[$$]22.8[$$]23.9[$$]25.1[$$]26.4Accrued expenses15.416.117.017.818.719.6Client deposits0.00.00.00.00.00.0Income taxes payable2.93.13.23.43.63.7Deferred revenue20.021.022.123.224.325.5Other current liabilities36.238.039.941.944.046.2Current portion of long-term debt0.00.00.00.00.00.0Total current liabilities95.299.9104.9110.2115.7121.5Revolver15.00.00.00.00.00.0Senior credit facility0.00.00.00.00.00.0Subordinated note45.545.545.545.545.545.5Convertible bond190.0199.0208.5218.4218.4218.4Total debt250.5244.5254.0263.9263.9263.9Net deferred tax liability / (asset)(15.4)10.310.310.310.310.3Other long-term liabilities17.917.917.917.917.917.9Total liabilities348.2372.7387.1402.3407.8413.5Noncontrolling interests0.00.00.00.00.00.0Preferred stock0.00.00.00.00.00.0Common equity113.3167.7226.2288.3359.5436.7Total liabilities & shareholders' equity[$$]461.4[$$]540.4[$$]613.4[$$]690.6[$$]767.2[$$]850.2

Check0.00.00.00.00.00.0

xCash Flow Statement


Operating Activities

Net income$43.5$47.0$49.9$58.4$63.8Depreciation14.715.416.217.017.9Amortization of intangibles11.611.611.62.70.0Stock-based compensation11.311.912.513.113.8Equity income in affiliates0.00.00.00.00.0Cash dividends from equity investments0.00.00.00.00.0PIK accrual Convertible bond9.09.59.90.00.0PIK accrual Preferred stock0.00.00.00.00.0Income statement adjustments46.748.450.232.831.7(Increase) / decrease in working capital(2.9)(3.1)(3.2)(3.4)(3.5)Increase / (decrease) in net DTL25.70.00.00.00.0(Increase) / decrease in other assets0.00.00.00.00.0Increase / (decrease) in other liabilities0.00.00.00.00.0Balance sheet adjustments22.8(3.1)(3.2)(3.4)(3.5)Cash flow from operating activities$112.9$92.3$96.9$87.8$91.9

Investing Activities

Cash flow from investing activities($16.0)($16.8)($17.6)($18.5)($19.4)

Financing Activities

Revolver($15.0)0.00.00.00.0Senior credit facility0.00.00.00.00.0Subordinated note0.00.00.00.00.0Convertible bond0.00.00.00.00.0Preferred stock0.00.00.00.00.0Common dividend(0.4)(0.4)(0.4)(0.4)(0.4)Cash flow from financing activities($15.4)($0.4)($0.4)($0.4)($0.4)

Change in cash$81.6$75.2$79.0$69.0$72.2

xWorking Capital


Net Working Capital

Accounts receivable[$$]136.4[$$]143.3[$$]150.4[$$]157.9[$$]165.8[$$]174.1Inventory0.00.00.00.00.00.0Deferred tax asset, current8.89.39.710.210.711.3Other current assets8.28.69.19.510.010.5Non-cash current assets153.5161.2169.2177.7186.6195.9Accounts payable20.721.722.823.925.126.4Accrued expenses15.416.117.017.818.719.6Client deposits0.00.00.00.00.00.0Income taxes payable2.93.13.23.43.63.7Deferred revenue20.021.022.123.224.325.5Other current liabilities36.238.039.941.944.046.2Non-debt current liabilities95.299.9104.9110.2115.7121.5Net working capital$58.3$61.2$64.3$67.5$70.9$74.4

Working Capital Drivers

Sales$440.8$462.8$486.0$510.3$535.8$562.6COGS234.4246.1258.4271.3284.9299.2Purchases246.1258.4271.3284.9299.2Selector
Ryan MacGregor: Macabacus:1 = Sales, 2 = COGSAccounts receivable / sales130.95%30.95%30.95%30.95%30.95%30.95%Inventory / COGS20.00.00.00.00.00.0Deferred tax asset, current / sales12.00%2.00%2.00%2.00%2.00%2.00%Other current assets / COGS23.51%3.51%3.51%3.51%3.51%3.51%

Accounts payable / COGS28.81%8.81%8.81%8.81%8.81%8.81%Accrued expenses / COGS26.56%6.56%6.56%6.56%6.56%6.56%Client deposits / sales10.00.00.00.00.00.0Income taxes payable / COGS21.25%1.25%1.25%1.25%1.25%1.25%Deferred revenue / sales14.54%4.54%4.54%4.54%4.54%4.54%Other current liabilities / COGS215.44%15.44%15.44%15.44%15.44%15.44%

Accounts receivable days110.3110.3110.3110.3110.3Accounts payable days31.431.431.431.431.4Inventory days0.00.00.00.00.0Inventory turnoverNANANANANA

xDebt Schedule


Beginning cash balance$157.1$238.7$313.9$392.9$461.9( ) Minimum cash balance(100.0)(100.0)(100.0)(100.0)(100.0)Excess cash / (cash deficit)57.1138.7213.9292.9361.9( + ) Cash flow available for debt service96.975.579.369.372.5Total cash available for debt service154.1214.3293.2362.2434.4Senior credit facility0.00.00.00.00.0Subordinated note0.00.00.00.00.0Convertible bond0.00.00.00.00.0( ) Scheduled debt repayment0.00.00.00.00.0Cash available for sweep / (revolver draw-down)$154.1$214.3$293.2$362.2$434.4

Optional debt repaymentRevolver($15.0)0.00.00.00.0Senior credit facility0.00.00.00.00.0Subordinated note0.00.00.00.00.0Total optional debt repayment($15.0)0.00.00.00.0

Debt Schedule

RevolverBeginning balance[$$]15.00.00.00.00.0( + ) Revolver draw-down0.00.00.00.00.0( ) Revolver pay-down(15.0)0.00.00.00.0Ending balance$15.00.00.00.00.00.0

Bank revolver commitment$100.0$100.0$100.0$100.0$100.0$100.0Undrawn revolver balance85.0100.0100.0100.0100.0100.0

Senior credit facilityBeginning balance0.00.00.00.00.0( ) Mandatory repayment0.00.00.00.00.0( ) Optional repayment0.00.00.00.00.0Ending balance0.00.00.00.00.00.0

Subordinated noteBeginning balance[$$]45.5[$$]45.5[$$]45.5[$$]45.5[$$]45.5( ) Scheduled maturity0.00.00.00.00.0( ) Optional repayment0.00.00.00.00.0Ending balance$45.5$45.5$45.5$45.5$45.5$45.5

Convertible bondBeginning balance[$$]190.0[$$]199.0[$$]208.5[$$]218.4[$$]218.4( + ) PIK accretion9.09.59.90.00.0( ) Scheduled maturity0.00.00.00.00.0Ending balance$190.0$199.0$208.5$218.4$218.4$218.4

Preferred stockBeginning balance0.00.00.00.00.0( + ) PIK accretion0.00.00.00.00.0( ) Retirement0.00.00.00.00.0Ending balance0.00.00.00.00.00.0

Scheduled Debt Amortization (%)
Ryan MacGregor: Macabacus:Include only non-PIK instruments here.

Senior credit facility0.00.00.00.00.0Subordinated note0.00.00.00.00.0

Interest Rates

LIBOR3.74%4.16%4.57%4.83%4.98%Cash0.25%0.25%0.25%0.25%0.25%Undrawn commitment fee0.50%0.50%0.50%0.50%0.50%

Revolver7.99%8.41%8.82%9.08%9.23%Senior credit facility8.49%8.91%9.32%9.58%9.73%Subordinated note8.25%8.25%8.25%8.25%8.25%Convertible bond9.50%9.50%9.50%9.50%9.50%Preferred stock10.25%10.25%10.25%10.25%10.25%

Interest Expense / Preferred Dividends

Undrawn commitment fee[$$]0.4[$$]0.5[$$]0.5[$$]0.5[$$]0.5

Revolver[$$]1.20.00.00.00.0Senior credit facility0.00.00.00.00.0Subordinated note[$$]3.8[$$]3.8[$$]3.8[$$]3.8[$$]3.8Convertible bond[$$]18.1[$$]18.1[$$]18.9[$$]19.8[$$]20.7[$$]20.7Preferred stock0.00.00.00.00.00.0

Senior interest expense[$$]1.6[$$]0.5[$$]0.5[$$]0.5[$$]0.5Cash interest expense[$$]14.4[$$]13.7[$$]14.2[$$]25.0[$$]25.0Total interest expense[$$]23.4[$$]23.2[$$]24.1[$$]25.0[$$]25.0Convertible preferred dividends0.00.00.00.00.0Straight preferred dividends0.00.00.00.00.0Total preferred dividends0.00.00.00.00.0

Interest & Dividends Paid-in-Kind (PIK)
Ryan MacGregor: Macabacus:Expressed as a percentage of total interest/dividends. PIK normally applies only to subordinated bonds and preferred stock.

With some forms of junior debt and preferred stock, interest and dividend payments may be made "in-kind", meaning that rather than paying interest or dividends with cash, TargetCo may instead pay with additional amounts of debt or preferred stock, as applicable, that increase the face value of these securities. Payment-in-kind ("PIK") is often structured so that TargetCo has the option to pay either cash or in-kind for the first few years, after which all interest payments and dividends must be paid in cash. TargetCo will often elect to pay in-kind whenever possible to conserve cash. Whether such payments are made in-kind or in cash, the interest expense or dividend payments appear in full on the income statement. Any amounts paid in-kind are added back to net income on the cash flow statement since no cash was actually paid. We assume here that any years PIK are measured from the date the deal closes.

Revolver0.00.00.00.00.0Senior credit facility0.00.00.00.00.0Subordinated note0.00.00.00.00.0Convertible bond50.0%50.0%50.0%0.00.0Preferred stock0.00.00.00.00.0

Debt Triggers

Average interest?0.0
Ryan MacGregor: Macabacus:When average interest is not selected, interest expense is computed using the beginning balance. To break the circular reference, toggle average interest off then back on. After toggling, hit F9 to recalculate.

Fixed Rate /Spread toSeniorPreferredConvertibleConversionCashCoupon
Ryan MacGregor: Macabacus:Enter zero for floating rates.LIBOR
Ryan MacGregor: Macabacus:Enter zero for fixed rates.Debt?Security?Security?PriceSweep

Revolver0.04.25%1.00.00.00.0100.0%Senior credit facility0.04.75%1.00.00.00.0100.0%Subordinated note8.25%0.00.00.00.00.00.0Convertible bond9.50%0.00.00.01.0$26.770.0Preferred stock10.25%0.00.01.00.00.00.0

xEquity Investments


Equity income in affiliates0.00.00.00.00.0( ) Cash dividends received from equity investments0.00.00.00.00.0Undistributed earnings0.00.00.00.00.0

Dividends Received Deduction (DRD)80.0%

Current taxes payable0.00.00.00.00.0Deferred tax expense0.0
Ryan MacGregor: Macabacus:Whether you apply the DRD to deferred taxes is a judgement call. Accountants will generally advise you not to, since companies rarely pay "catch-up" dividends (i.e. they will not likely distribute dividends in the future that were not distributed in the current period). So, these undistributed dividends would never qualify for the DRD because they are not expected to be distributed in the future.

If you do expect undistributed earnings to be paid out in a future period, then you would apply the DRD to the undistrubted earnings.0.00.00.00.00.0Income tax expense0.00.00.00.00.0

Tax benefit from DRD0.00.00.00.00.0

xDepreciation Schedule


Capital expenditures$16.0$16.8$17.6$18.5$19.4

Book Depreciation (straight-line)

Useful life (yrs)10.0Midpoint convention1.0

2013$16.0$0.8$1.6$1.6$1.6$1.62014$16.80.81.71.71.72015$17.60.91.81.82016$18.50.91.82017$19.41.0Book depreciation of capex0.82.44.26.07.8( + ) Book depreciation of existing fixed assets
Ryan MacGregor: Macabacus:This is set up as a plug. If assumptions are reasonable, this row should go to zero.13.913.012.111.110.0Total book depreciation expense$14.7$15.4$16.2$17.0$17.9

Modified Accelerated Cost Recovery System (MACRS) Depreciation

MACRS Property ClassYear357101520

133.33%20.00%14.29%10.00%5.00%3.75%244.45%32.00%24.49%18.00%9.50%7.22%314.81%19.20%17.49%14.40%8.55%6.68%47.41%11.52%12.49%11.52%7.70%6.18%511.52%8.93%9.22%6.93%5.71%65.76%8.92%7.37%6.23%5.29%78.93%6.55%5.90%4.89%84.46%6.55%5.90%4.52%96.56%5.91%4.46%106.55%5.90%4.46%113.28%5.91%4.46%125.90%4.46%135.91%4.46%145.90%4.46%155.91%4.46%162.95%4.46%174.46%184.46%194.46%204.46%212.23%Total100.00%100.00%100.00%100.00%100.00%100.00%Source: IRS Publication 946, Table A-1.

Property class (yrs)10.0

2013$16.0$1.6$2.9$2.3$1.8$1.52014$16.81.73.02.41.92015$17.61.83.22.52016$18.51.83.32017$19.41.9MACRS depreciation of capex$1.6$4.5$7.1$9.3$11.2

Tax Depreciation

Use MACRS depreciation of capex?0.0
Ryan MacGregor: Macabacus:Assume same as book depreciation by default for simplicity and to avoid masking purchase accounting adjustments on a pro forma basis. This might be a valid assumption if the company has no existing DTA/DTL.

In reality tax depreciation might use an accelerated MACRS schedule.

Tax depreciation of capex$0.8$2.4$4.2$6.0$7.8( + ) Tax depreciation of existing fixed assets
Ryan MacGregor: Macabacus:Assume same as book depreciation for simplicity and to avoid masking purchase accounting adjustments on a pro forma basis. This might be a valid assumption if the company has no existing DTA/DTL.

In reality tax depreciation might use an accelerated MACRS schedule.13.913.012.111.110.0Total tax depreciation expense$14.7$15.4$16.2$17.0$17.9

xTax Schedule


Federal tax rate38.1%38.1%38.1%38.1%38.1%State and local tax rate3.0%3.0%3.0%3.0%3.0%Blended tax rate39.8%40.0%40.0%40.0%40.0%40.0%

Cash Taxes & Net DTL

EBITDA$133.1$139.8$146.8$154.1$161.8( ) Tax depreciation(14.7)(15.4)(16.2)(17.0)(17.9)( ) Tax amortization of intangible assets
Ryan MacGregor: Macabacus:Assume same as book amortization for simplicity and to avoid masking purchase accounting adjustments on a pro forma basis. This might be a valid assumption if the company has no existing DTA/DTL.(11.6)(11.6)(11.6)(2.7)0.0( ) Tax amortization of tax-deductible goodwill0.00.00.00.00.0( ) Stock-based compensation
Ryan MacGregor: Macabacus:Assume same as book for simplicity.(11.3)(11.9)(12.5)(13.1)(13.8)( + ) Interest income / (expense)(23.0)(22.6)(23.3)(24.0)(23.8)( + ) Distributed equity income in affiliates0.00.00.00.00.0( + ) Other income / (expense)0.00.00.00.00.0Total taxable income72.578.383.297.3106.3( ) NOL used(64.2)0.00.00.00.0State and local taxable income8.378.383.297.3106.3( ) State and local cash taxes(0.2)(2.3)(2.5)(2.9)(3.2)Federal taxable income$8.0$75.9$80.7$94.4$103.1

Federal cash taxes$3.1$29.0$30.8$36.0$39.3( + ) State and local cash taxes0.22.32.52.93.2Total cash taxes payable3.331.333.338.942.5( + ) Deferred tax expense / (benefit)25.70.00.00.00.0Book tax expense$29.0$31.3$33.3$38.9$42.5

Net DTL beginning balance($15.4)$10.3$10.3$10.3$10.3Increase / (decrease) in net DTL25.70.00.00.00.0Net DTL ending balance($15.4)$10.3$10.3$10.3$10.3$10.3

Acquired NOL Subject to Section 382

Annual Sec. 382 NOL deduction limit0.0
Ryan MacGregor: Macabacus:This is the maximum amount of NOL that can be used to offset taxable income (as calculated for tax purposes) in each lookforward period.Remaining NOL life (yrs)0.00.00.00.00.00.0

Acquired NOL subject to Sec. 382Beginning balance0.00.00.00.00.0( ) NOL used0.00.00.00.00.0( ) NOL expired0.00.00.00.00.0Ending balance0.00.00.00.00.00.0

Unused limitation carryforwardBeginning balance0.00.00.00.00.0( + ) Carryforward created0.00.00.00.00.0( ) Carryforward used0.00.00.00.00.0Ending balance0.00.00.00.00.00.0

Unencumbered NOL

Remaining NOL life (yrs)15.00
Ryan MacGregor: Macabacus:NOL may be be carried forward up to 20 years. In practice, NOL may be accumulated over a span of time, such that the average remaining life of the NOL, in aggregate, is less than 20 years. For simplicity, we assume that all NOL were generated in a single period 5 years ago, such that the remaining life is 20-5=15 years. Ultimately, this is a diligence item.14.0013.0012.0011.0010.00

Beginning balance$64.20.00.00.00.0( + ) NOL created0.00.00.00.00.0( ) NOL used(64.2)0.00.00.00.0( ) NOL expired0.00.00.00.00.0Ending balance$64.20.00.00.00.00.0

DTA attributable to NOL

Beginning balance$25.70.00.00.00.0Increase / (decrease) in DTA attributable to NOL(25.7)0.00.00.00.0Ending balance$25.7
Ryan MacGregor: Macabacus:This is an approximation to ensure the math works for illustrative purposes. The disclosed DTA attributable to NOL may not exactly equal the NOL times the tax rate.0.00.00.00.00.0

Alternative Minimum Tax (AMT)

*** SOME OR ALL OF THIS SECTION MAY NOT APPLY OUTSIDE THE UNITED STATES ***

Corporate AMT tax rate20.0%20.0%20.0%20.0%20.0%Maximum taxable income offset90.0%90.0%90.0%90.0%90.0%Effective AMT tax rate2.0%2.0%2.0%2.0%2.0%

Federal tax at statutory rate (post-NOL)$3.1$29.0$30.8$36.0$39.3Alternative minimum tax (before credits)1.41.51.61.92.1

Tax payable before AMT credit used$3.1$29.0$30.8$36.0$39.3( ) AMT tax credit used0.00.00.00.00.0Federal cash taxes$3.1$29.0$30.8$36.0$39.3Effective federal cash tax rate4.2%38.1%38.1%38.1%38.1%

AMT tax credit carryforwardAMT tax credit beginning balance0.00.00.00.00.0( + ) AMT tax credit generated0.00.00.00.00.0( ) AMT tax credit used0.00.00.00.00.0AMT tax credit ending balance0.00.00.00.00.00.0

xShares Outstanding


Stock Options

Current share price$9.16

Options OutstandingOptions ExercisableNumber ofAverageNumber ofAverageTreasuryOptionsStrikeOptionsStrikeMethod

Tranche 10.402$9.130.209$9.040.003Tranche 20.1209.930.05910.030.0Tranche 30.46611.600.22111.530.0Tranche 40.30012.640.30012.690.0Tranche 50.52019.480.26919.540.0Tranche 60.42227.030.21127.060.0Tranche 70.37545.780.18745.750.0Tranche 80.00.00.00.00.0Tranche 90.00.00.00.00.0Tranche 100.00.00.00.00.0Total Treasury Method shares0.003

Convertible Securities

Face valueConvertible bond$190.0$199.0$208.5$218.4$218.4$218.4Preferred stock0.00.00.00.00.00.0

Conversion priceConvertible bond$26.77$26.77$26.77$26.77$26.77$26.77Preferred stock0.00.00.00.00.00.0

Convertible sharesConvertible bond7.0977.4357.7888.1588.1588.158Preferred stock0.00.00.00.00.00.0

EPS if converted
Ryan MacGregor: Macabacus:Note that we do not tax effect the add-back of preferred dividends.Convertible bond$1.27$1.27$1.35$1.42$1.63$1.75Preferred stock$1.22$1.23$1.33$1.41$1.65$1.81

Basic EPS$1.22$1.23$1.33$1.41$1.65$1.81

Is conversion dilutive?
Ryan MacGregor: Macabacus:If the security is anti-dilutive, it is not included in the fully diluted share count. Conversely, if the security is dilutive, it is included in the fully diluted share count.Convertible bond0.00.00.00.01.01.0Preferred stock0.00.00.00.00.00.0

Fully Diluted Shares Outstanding

Basic shares outstanding (BSO)35.34035.34035.34035.34035.34035.340( + ) In-the-money Treasury Method option shares0.0030.0030.0030.0030.0030.003( + ) Shares from Convertible bond0.00.00.00.08.1588.158( + ) Shares from Preferred stock0.00.00.00.00.00.0Fully diluted shares outstanding (FDSO)35.34335.34335.34335.34343.50043.500

xSummary Credit Metrics


Capitalization

Total debt244.5254.0263.9263.9263.9Net debt5.8(59.9)(129.0)(198.0)(270.1)Senior debt0.00.00.00.00.0Preferred stock0.00.00.00.00.0Total capitalization412.2480.2552.2623.3700.6

Interest Expense

Senior interest expense[$$]1.6[$$]0.5[$$]0.5[$$]0.5[$$]0.5Cash interest expense14.413.714.225.025.0Total interest expense23.423.224.125.025.0Fixed charges (total interest & preferred dividends)23.423.224.125.025.0

Coverage

EBITDA[$$]133.1[$$]139.8[$$]146.8[$$]154.1[$$]161.8EBITDA / senior interest expense82.0x279.6x293.6x308.3x323.7xEBITDA / cash interest expense9.2x10.2x10.4x6.2x6.5xEBITDA / total interest expense5.7x6.0x6.1x6.2x6.5xEBITDA / fixed charges5.7x6.0x6.1x6.2x6.5x

EBITDA capex[$$]117.2[$$]123.0[$$]129.2[$$]135.7[$$]142.4(EBITDA capex) / senior interest expense72.2x246.1x258.4x271.3x284.9x(EBITDA capex) / cash interest expense8.1x9.0x9.1x5.4x5.7x(EBITDA capex) / total interest expense5.0x5.3x5.4x5.4x5.7x(EBITDA capex) / fixed charges5.0x5.3x5.4x5.4x5.7x

EBITDA capex WC[$$]114.3[$$]120.0[$$]126.0[$$]132.3[$$]138.9(EBITDA capex WC) / senior interest expense70.4x240.0x252.0x264.5x277.8x(EBITDA capex WC) / cash interest expense7.9x8.8x8.9x5.3x5.6x(EBITDA capex WC) / total interest expense4.9x5.2x5.2x5.3x5.6x(EBITDA capex WC) / fixed charges4.9x5.2x5.2x5.3x5.6x

Leverage

Senior debt / total capitalization0.00.00.00.00.0Net debt / total capitalization1.41%NMNMNMNM

Senior debt / EBITDA0.00.00.00.00.0Total debt / EBITDA1.84x1.82x1.80x1.71x1.63xNet debt / EBITDA0.04xNMNMNMNMNet debt + preferred / EBITDA0.04xNMNMNMNM

sample financial model

Documents