All values in 000's
Sources of Funds
Access to capital from Equity
Asset based Loan
Sellers Note
Mezzanine
Total
Capital composition % of Bid Price
15,000
22%
34,611
50%
10,350
15%
9,039
13%
69,000
2013 Purchase Multiples
Enterprise Value/EBITDA
Enterprise Value/EBIT
Enterprise Value/Revenues
4.3x
4.7x
0.7x
Calculation of Asset Based Loan
2012 (A)
A/R
Inventory
Net Fixed Assets
Enterprise Value/EBITDA
IRR for PE Firm
Book Value
10,610
9,421
12,979
FMV
10,610
9,421
25,958
Exit Multiple Sensitivity Table
Rollover to another Sell to Strategic Buyer
Financial Buyer
(conservative Case)
4.3x
5.6x
21%
29%
2013
(60,000)
(60,000)
2014
0
0
(60,000)
Uses of Funds
Interest rate
Bid Price
Growth capital Cushion
Refinancing of current Debt
Total
10%
5%
14%
d Loan
Loan to value ratio
@85%
@65%
@75%
Total 1
Loan Value
9,019
6,124
19,469
34,611
Sell to Strategic Buyer
(best Case)
7.8x
40%
2015
0
0
2016
0
0
2017
127,716
166,031
Amount
60,000
5,000
4,000
69,000
231,540
% of Total
87%
7%
6%
Historical and Expected Income Statements ($000s)
Historical
2011(A)
Total revenues
% Growth
COGS
% of Sales
Projections
2012(A)
2013(P)
2014(P)
2015(P)
$66,458
$82,833
$97,329
$111,929
$128,718
NA
24.6%
17.5%
15.0%
15.0%
45,472
56,378
67,033
76,198
86,978
68.4%
68.1%
68.9%
68.1%
67.6%
20,986
26,455
30,296
35,731
41,740
31.6%
31.9%
31.1%
31.9%
32.4%
14,761
17,482
16,186
18,305
20,916
22%
21%
17%
16%
16%
6,225
(2,415)
(1,051)
$9,691
8,973
(2,363)
(1,385)
$12,721
14,110
0
0
$14,110
17,426
0
0
$17,426
20,824
0
0
$20,824
14.6%
15.4%
14.5%
15.6%
16.2%
EBIAT
Addback Depreciation
+/- Change in WC
- CapEX
Cash Flows
9,172
1,052
(1,320)
(1,300)
7,604
11,327
1,158
(726)
(1,300)
10,459
13,536
1,273
(762)
(1,300)
12,747
Total Principal
Total Interest
5,334
5,022
5,853
4,504
6,429
3,927
Coverage Statistics
EBIT/ (Principal + Interest)
Cash Flow / (Principal + Interest)
EBITDA / (Total Interest)
1.4x
0.7x
3.0x
1.7x
1.0x
4.1x
2.0x
1.2x
5.6x
Leverage Statistics
Total Debt / EBITDA
0.7x
0.6x
0.5x
Total gross profit
% Margin
SG&A
% of Sales
Operating income
Restate for Baloleum
Other restatements
Adjusted EBIT
% Margin EBIT
Returns
ROE
Extra cash Flow needed for 2:1
with Cashflow
27.7%
3,065
35.6%
37.0%
1,246
112
EBIAT
Interest
Net Income
9,172
5,022
4,149
11,327
4,504
6,823
13,536
3,927
9,608
Asset Based Loan (120 Months)
1
Principal
$34,611
Interest rate (monthly)
0.83%
Monthly Payment for Amortization $457
Interest payment
$288
Reduction to Principle
$169
2
$34,442
3
$34,271
4
$34,100
5
$33,926
$457
$287
$170
$457
$286
$172
$457
$284
$173
$457
$283
$175
Year 1
$3,366
$2,123
$5,489
Year 2
$3,143
$2,345
$5,489
Year 3
$2,898
$2,591
$5,489
Year 4
$2,626
$2,862
$5,489
Year 5
$2,327
$3,162
$5,489
2
$8,934
3
$8,828
4
$8,721
5
$8,612
$210
$104
$106
$210
$103
$107
$210
$102
$109
$210
$100
$110
Year 1
$1,182
$1,342
$2,524
Year 2
$981
$1,543
$2,524
Year 3
$751
$1,773
$2,524
Year 4
$486
$2,038
$2,524
Year 5
$181
$2,343
$2,524
1
Principal
$10,350
Interest rate (monthly)
0.42%
Monthly Payment for Amortization $195
2
$10,198
3
$10,045
4
$9,892
5
$9,737
$195
$195
$195
$195
Total Interest
Total Principal
Principal + Interest
Mezzanine Loan (60 Months, without PIK)
1
Principal
$9,039
Interest rate (monthly)
1.17%
Monthly Payment for Amortization $210
Interest payment
$105
Reduction to Principle
$105
Total Interest
Total Principal
Principal + Interest
Sellers note (60 Months)
Interest payment
Reduction to Principle
$43
$152
$42
$153
$42
$153
$41
$154
$41
$155
Total Interest
Total Principal
Principal + Interest
Year 1
$475
$1,869
$2,344
Year 2
$379
$1,964
$2,344
Year 3
$279
$2,065
$2,344
Year 4
$173
$2,170
$2,344
Year 5
$62
$2,282
$2,344
TOTAL P+I
$10,356
$10,356
$10,356
$10,356
$10,356
Option
Projections
2016(P)
2017(P)
$148,026
$170,229
15.0%
15.0%
99,494
114,502
67.2%
67.3%
48,532
55,727
32.8%
32.7%
23,959
27,491
16%
16%
24,573
0
0
$24,573
28,236
0
0
$28,236
16.6%
16.6%
15,972
1,401
(800)
(1,300)
15,273
18,353
1,541
(840)
(1,300)
17,754
7,071
3,285
7,786
2,570
2.4x
1.5x
7.9x
2.7x
1.7x
11.6x
0.4x
0.3x
35.7%
32.7%
(1,132)
(2,182)
15,972
3,285
12,687
18,353
2,570
15,783
6
$33,752
7
$33,576
8
$33,398
9
$33,219
118
$1,350
119
$903
120
$454
$457
$281
$176
$457
$280
$178
$457
$278
$179
$457
$277
$181
$457
$11
$446
$457
$8
$450
$457
$4
$454
6
$8,503
7
$8,391
8
$8,279
9
$8,165
$210
$99
$111
$210
$98
$112
$210
$97
$114
$210
$95
$115
6
$9,583
7
$9,427
8
$9,271
9
$9,115
$195
$195
$195
$195
End
($0)
$40
$155
$39
$156
$39
$157
$38
$157
