LBO Valuation Model

LBO Valuation Model - Table 11-7: California Kool Income...

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Unformatted text preview: Table 11-7: California Kool Income Statements and Forecast Assumptions Income Statement and Forecast Assumptions Projections: Twelve Months Ending December 31, Income Statement Assumptions: 2003 2004 2005 2006 2007 2008 2009 2010 Net Sales Growth (%) 0.038 0.035 0.040 0.045 0.045 0.045 0.045 0.045 Cost of Sales as % of Sales 0.780 0.765 0.758 0.755 0.750 0.750 0.750 0.750 SG&A as % of Sales 0.142 0.135 0.130 0.125 0.120 0.120 0.120 0.120 Effective Tax Rate (%) 0.400 0.400 0.400 0.400 0.400 0.400 0.400 0.400 Balance Sheet Assumptions: Cash & Mkt. Securities (%Sales) 0.020 0.020 0.020 0.020 0.020 0.020 0.020 0.020 Accounts Receivable (%Sales) 0.167 0.155 0.155 0.155 0.155 0.155 0.155 0.155 Other Current Assets (%Sales) 0.063 0.055 0.055 0.055 0.055 0.055 0.055 0.055 Gross Prop., Plant & Equip (%Sales) 0.520 0.520 0.520 0.520 0.520 0.520 0.520 0.520 Accumulated Depreciation (%GP&E) 0.700 0.700 0.700 0.700 0.700 0.700 0.700 0.700 Accounts Payable (%Sales) 0.084 0.078 0.078 0.078 0.078 0.078 0.078 0.078 Other Current Liabilities (%Sales) 0.076 0.070 0.070 0.070 0.070 0.070 0.070 0.070 Net Sales $190.4 $197.1 $205.0 $214.2 $223.8 $233.9 $244.4 $255.4 Cost of Sales 148.5 150.8 155.4 161.7 167.9 175.4 183.3 191.6 Gross Profit 41.9 46.3 49.6 52.5 56.0 58.5 61.1 63.9 Depreciation 5.1 2.4 2.9 3.4 3.5 3.7 3.8 4.0 Amortization of Financing Fees 0.5 0.5 0.5 0.5 Total Depreciation & Amortization 5.1 2.9 3.4 3.9 4.0 3.7 3.8 4.0 SG&A 27.0 26.6 26.6 26.8 26.9 28.1 29.3 30.7 Management Fee 0.1 0.1 0.1 0.1 0.1 0.1 0.1 Operating Income (EBIT) 9.7 16.7 19.5 21.7 25.0 26.6 27.8 29.1 (Interest Income) 0.1 0.0 0.1 0.1 0.1 0.1 0.1 0.1 New Revolver Interest Expense 0.7 0.2 0.0 0.0 0.0 0.0 0.0 New Senior Debt Interest Expense 1.6 1.4 1.2 0.9 0.6 0.3 0.0 Subordinated Debt Interest Expense 1.7 1.5 1.3 1.1 0.9 0.6 0.3 Total Interest Expense 3.9 3.1 2.5 2.0 1.5 0.9 0.3 Earnings Before Taxes 9.8 12.8 16.4 19.3 23.0 25.1 26.9 28.8 Taxes @40% 3.9 5.1 6.5 7.7 9.2 10.1 10.8 11.5 Net Income $5.9 $7.7 $9.8 $11.6 $13.8 $15.1 $16.1 $17.3 PIK Preferred Dividend 2.6 3.7 4.3 4.9 5.6 6.5 7.4 Net Income to Common $5.9 $5.0 $6.1 $7.3 $8.9 $9.5 $9.7 $9.8 Closing Projections: Twelve Months Ended December, 2003 2004 2005 2006 2007 2008...
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LBO Valuation Model - Table 11-7: California Kool Income...

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