Landmark Facilityexcel12s
Landmark Facilityexcel12s
Landmark Facilityexcel12s
$ millions)
2010
2011
Income statement
Net sales
289.9
304.1
COGS
259.4
273.1
Gross profit
30.5
31.0
Operating expenses
20.9
21.6
Depreciation and amortization
1.6
1.6
Operating profit
8.0
7.8
Interest expense
0.0
0.0
Income taxes
2.8
2.7
Net income
5.2
5.1
EPS
$1.30
$1.27
Dividend
$0.20
$0.20
2012
2013
2014 [E]
316.4
284.1
32.3
26.7
1.7
3.9
0.3
1.3
2.3
$0.58
$0.20
329.0
295.3
33.7
28.6
1.7
3.4
0.2
1.1
2.1
$0.52
$0.20
345.5
310.4
35.1
30.3
1.8
3.0
0.0
1.1
2.0
$0.49
$0.20
Balance sheet
Cash
Accounts receivable
Other current assets
Current assets
Net PP&E
Investments and other assets
Total assets
3.6
20.7
6.3
30.6
3.1
45.0
78.7
4.2
22.0
5.1
31.3
5.1
47.1
83.6
3.3
29.3
4.9
37.5
7.2
47.3
92.0
1.5
30.4
5.0
36.9
9.2
47.6
93.7
0.4
31.0
4.9
36.3
11.2
47.2
94.6
Accounts payable
Bank borrowing
Current Liabilities
Accrued expenses and deferred taxes
Other non-current liabilities
Total liabilities
Shareholders' equity
Total liabilities and equity
5.6
0.0
5.6
13.9
16.6
36.1
42.6
78.7
5.3
0.0
5.3
13.9
17.5
36.7
46.9
83.6
7.6
4.0
11.6
15.0
17.0
43.6
48.4
92.0
8.9
2.5
11.4
15.3
17.3
44.0
49.7
93.7
10.4
0.0
10.4
15.5
17.9
43.8
50.8
94.6
2012
2013
149.5
137.1
12.4
2.9
2.5
7.0
0.4
2.3
4.3
$1.22
$0.24
155.3
142.5
12.8
3.0
2.8
7.0
0.4
2.3
4.3
$1.23
$0.24
1.8
13.1
2.8
17.7
16.0
35.9
69.6
1.0
13.5
4.0
18.5
17.4
38.6
74.5
1.9
14.6
4.1
20.6
18.6
41.8
81.1
1.5
15.2
4.2
20.9
19.7
43.2
83.8
9.3
0.4
9.7
8.2
11.6
11.0
40.5
29.1
69.6
9.9
0.4
10.3
7.7
12.8
11.2
42.0
32.5
74.5
10.4
0.4
10.8
8.7
13.1
12.5
45.1
36.0
81.1
11.0
0.4
11.4
8.3
13.3
11.4
44.4
39.4
83.8
2014 [E]
161.9
148.6
13.3
3.0
2.9
7.4
0.4
2.5
4.6
$1.30
$0.24
2.1
16.2
4.2
22.5
20.9
43.5
86.8
11.5
0.4
11.9
7.9
13.0
10.9
43.7
43.1
86.8
Exhibit 3a Five-year Forecast of Landmark's Income and Cash Flow, 2015-2019 (U.S. $ millions)*
2015
2016
2017
Net sales
362.8
380.9
400.0
Operating profit
5.4
5.7
6.0
Net income
3.5
3.7
3.9
Depreciation and amortization
2.1
2.4
2.7
Change in net working capital
1.3
1.3
1.4
Capital expenditure
3.6
3.8
4.0
Total FCF
0.7
1.0
1.2
2018
420.0
6.3
4.1
3.0
1.5
4.2
1.4
Exhibit 3b Five-year Forecast of Broadway's Income and Cash Flow, 2015-2019 (U.S. $ millions)*
2015
2016
2017
Net sales
168.4
175.1
182.1
Operating profit
6.7
7.0
7.3
Interest expense
0.4
0.4
0.4
Net income
4.1
4.3
4.5
Depreciation and amortization
3.1
3.3
3.5
Change in net working capital
0.4
0.4
0.4
Capital expenditure
4.2
4.4
4.6
Total FCF
2.8
3.1
3.3
2018
189.4
7.6
0.4
4.7
3.7
0.4
4.7
3.5
*Numbers in the exhibits are based on the assumption Broadway does not acquire Landmark.
2019
441.0
6.6
4.3
3.3
1.6
4.4
1.6
2019
197.0
7.9
0.4
4.9
3.9
0.4
4.9
3.7
$26.76
231.2
$6,186.9
$5,887.0
$10,267.1
1.69
Comparable Company 2
$6,417.2
$123.8
$1.84
$46.83
67.3
$3,151.7
$355.0
$3,465.9
1.25
Comparable Company 3
$836.9
$12.1
$0.55
$22.73
22.0
$500.1
$289.0
$862.4
1.56
0.04%
0.10%
2.56%
4.16%
4.34%
4.52%
4.70%
5.90%
2015
8.36%
5.0%
1.5%
7.0%
1.0%
362.8
5.4
1.9
3.5
2.1
25.4
-0.1
3.6
2.1
2016
8.36%
5.0%
2.0%
6.5%
1.0%
380.9
7.6
2.7
5.0
2.4
24.8
-0.6
3.8
4.2
2017
8.36%
5.0%
2.5%
6.3%
1.0%
400.0
10.0
3.5
6.5
2.7
25.2
0.4
4.0
4.8
2018
8.36%
5.0%
3.0%
6.0%
1.0%
420.0
12.6
4.4
8.2
3.0
25.2
0.0
4.2
7.0
2019
8.36%
5.0%
3.0%
5.5%
1.0%
441.0
13.2
4.6
8.6
3.3
24.3
-0.9
4.4
8.4
$160.2
2020
8.36%
4.0%
3.0%
5.5%
1.0%
458.6
13.8
4.8
8.9
3.6
25.2
1.0
4.6
7.0
2021
8.36%
4.0%
3.0%
5.5%
1.0%
476.9
14.3
5.0
9.3
3.9
26.2
1.0
4.8
2022
8.36%
4.0%
3.0%
5.5%
1.0%
496.0
14.9
5.2
9.7
4.2
27.3
1.0
5.0
-10.0%
8.5%
2.0%
2.1%
145.7
12.4
6.4
2.2
4.1
3.1
0.4
3.1
3.8
-10.0%
8.5%
2.0%
2.1%
131.1
11.1
5.2
1.8
3.4
3.3
0.4
2.8
3.6
9.0%
9.0%
2.0%
2.1%
142.9
12.9
6.5
2.3
4.2
3.5
0.4
3.0
4.4
9.0%
9.0%
2.0%
2.1%
155.8
14.0
7.2
2.5
4.7
3.7
0.4
3.3
4.7
9.0%
9.5%
2.0%
2.1%
169.8
16.1
8.8
3.1
5.7
3.9
0.4
3.6
5.7
$154.4
4.5%
9.5%
2.0%
2.1%
177.5
16.9
9.2
3.2
6.0
4.1
0.4
3.7
6.0
4.5%
9.5%
2.0%
2.1%
185.5
17.6
9.6
3.4
6.2
4.3
0.4
3.9
4.5%
9.5%
2.0%
2.1%
193.8
18.4
10.0
3.5
6.5
4.5
0.4
4.1
$120.5
2.8
3.1
3.3
3.5
3.7
$88.1
3.8
$127.2
$71.9
$48.6
$175.8
2023
8.36%
4.0%
3.0%
5.5%
1.0%
515.9
15.5
5.4
10.1
4.5
28.4
1.1
5.2
4.5%
9.5%
2.0%
2.1%
202.5
19.2
10.5
3.7
6.8
4.7
0.4
4.3
2016
2017
2018
2019
WACC
Revenue growth
8.36%
8.36%
8.36%
8.36%
8.36%
5.0%
5.0%
5.0%
5.0%
5.0%
Operating margin
1.50%
1.50%
1.50%
1.50%
1.50%
Net WC
7.40%
7.40%
7.40%
7.40%
7.40%
Capex
1.00%
1.00%
1.00%
1.00%
1.00%
Revenue
362.8
380.9
400.0
420.0
441.0
Operating profits
5.4
5.7
6.0
6.3
6.6
Taxes
1.9
2.0
2.1
2.2
2.3
NOPAT
3.5
3.7
3.9
4.1
4.3
2.1
2.4
2.7
3.0
3.3
Net WC
26.8
28.2
29.6
31.1
32.6
Chg in net WC
1.3
1.3
1.4
1.5
1.6
Capex
3.6
3.8
4.0
4.2
4.4
FCF
0.7
1.0
1.2
1.4
1.6
Terminal value
PV (Landmark)
$42.5
$32.9
2020
8.36%
4.0%
1.50%
7.40%
1.00%
463.0
6.9
2.4
4.5
3.6
34.3
1.6
4.6
1.9
Line
Income statement
Net sales
Operating profit
Income taxes
Net income (unlevered)
Add: Depreciation and amortization
Less: Change in Net WC
Less: Capex
FCF
Interest expense (original debt)
Interest expense (new debt)
Less: after-tax interest expense
Less: retirement of LT debt
Cumulative debt cushion
2015
3.1
Balance sheet
Cash
Starting NWC
Change in NWC
Ending NWC
Goodwill
Net PP&E
Investments and other assets
Total assets less current liabilities
Long-term debt
Accrued expenses and deferred taxes
Other non-current liabilities
Total non-current liabilities
Shareholders 'equity
Total non-current liabilities and equity
Debt-related Ratios
2015
2016
3.8
6.2
8.6
2019
10.2
5.2
0.3
8.0
(6.7)
0.0
(6.7)
(0.4)
0.0
0.8
(1.2)
0.1
2.5
2.6
5.7
-0.3
9.8
(6.6)
0.0
(6.6)
(0.4)
0.0
0.8
(1.2)
2.0
2.6
4.6
6.2
0.8
11.6
(7.0)
0.0
(7.0)
(5.4)
0.0
0.8
(6.2)
(1.6)
4.6
2.9
6.7
0.4
14.9
(7.5)
0.0
(7.5)
(5.4)
0.0
0.8
(6.2)
1.2
2.9
4.1
7.2
-0.5
18.0
(8.0)
0.0
(8.0)
(5.4)
0.0
0.8
(6.2)
3.7
4.1
7.8
2016
4.6
34.3
(0.3)
34.0
69.2
34.4
90.7
232.9
127.1
28.5
28.8
184.4
48.4
232.8
2016
2017
2.9
34.0
0.8
34.8
69.2
35.2
90.7
232.8
121.7
28.5
28.8
179.0
53.8
232.8
2017
2018
4.1
34.8
0.4
35.2
69.2
35.9
90.7
235.2
116.3
28.5
28.8
173.6
61.5
235.1
2018
2019
7.8
35.2
(0.5)
34.7
69.2
36.7
90.7
239.1
110.9
28.5
28.8
168.2
70.9
239.1
2019
2.6
34.0
0.3
34.3
69.2
33.5
90.7
230.3
127.5
28.5
28.8
184.8
45.4
230.2
2015
2017
2018
1.69
2.81
74%
0.06
1.85
2.62
72%
0.08
2.38
2.26
69%
0.10
2.98
1.89
65%
0.13
3.47
1.56
61%
0.16
xpected scenario
2020
636.1
23.0
8.0
14.9
7.7
1.4
8.3
12.9
0.3
5.8
3.9
5.4
13.2
2021
661.5
23.9
8.4
15.5
6.8
1.4
8.7
12.3
0.3
5.5
3.7
5.4
16.3
2022
688.0
24.9
8.7
16.2
7.1
1.5
9.0
12.8
0.2
5.2
3.6
5.4
20.2
2023
715.5
26.0
9.1
16.9
7.4
1.5
9.4
13.4
0.2
5.0
3.4
90.4
(60.2)
2015
500.4
10.7
3.8
7.0
5.2
0.3
6.9
5.0
0.4
6.6
4.5
0.4
0.0
2016
497.9
11.5
4.0
7.4
5.7
1.6
6.6
4.9
0.4
6.6
4.5
0.4
(0.0)
2017
526.3
14.2
5.0
9.2
6.2
1.7
7.1
6.7
0.3
6.6
4.5
5.4
(3.2)
Pessimistic scenario
2018
2019
2020
556.4
588.3
611.8
15.8
16.8
17.4
5.5
5.9
6.1
10.3
11.0
11.3
6.7
7.2
7.7
-0.3
1.8
1.5
7.5
7.9
8.2
9.8
8.4
9.2
0.3
0.3
0.3
6.3
6.1
5.8
4.3
4.1
3.9
5.4
5.4
5.4
(3.2)
(4.2)
(4.3)
2021
636.3
18.0
6.3
11.7
8.2
1.6
8.6
9.8
0.3
5.5
3.7
5.4
(3.7)
2020
11.0
2021
11.8
2022
12.6
2023
13.5
2015
2016
2017
2018
2021
7.7
1.4
17.3
(8.3)
0.0
(8.3)
(5.4)
0.0
0.8
(6.2)
2.8
7.8
10.6
6.8
1.4
17.2
(8.7)
0.0
(8.7)
(5.4)
0.0
0.8
(6.2)
2.3
10.6
12.9
7.1
1.5
18.3
(9.0)
0.0
(9.0)
(5.4)
0.0
0.8
(6.2)
3.0
12.9
15.9
2020
10.6
34.7
1.4
36.1
69.2
37.3
90.7
243.9
105.5
28.5
28.8
162.8
81.0
243.8
2020
2021
12.9
36.1
1.4
37.5
69.2
39.2
90.7
249.4
100.1
28.5
28.8
157.4
92.0
249.4
2021
2022
15.9
37.5
1.5
38.9
69.2
41.1
90.7
255.8
94.7
28.5
28.8
152.0
103.8
255.8
2022
2019
2020
2.4
2.9
4.7
6.0
6.8
7.4
8.0
7.4
1.5
19.4
(9.4)
0.0
(9.4)
(90.4)
0.0
0.8
(91.2)
(81.2)
15.9
(65.3)
5.2
0.3
7.3
(6.9)
0.0
(6.9)
(0.4)
0.0
0.8
(1.2)
(0.8)
2.5
1.7
5.7
1.6
7.0
(6.6)
0.0
(6.6)
(0.4)
0.0
0.8
(1.2)
(0.9)
1.7
0.8
6.2
1.7
9.2
(7.1)
0.0
(7.1)
(5.4)
0.0
0.8
(6.2)
(4.1)
0.8
(3.3)
6.7
-0.3
13.0
(7.5)
0.0
(7.5)
(5.4)
0.0
0.8
(6.2)
(0.8)
(3.3)
(4.1)
7.2
1.8
12.3
(7.9)
0.0
(7.9)
(5.4)
0.0
0.8
(6.2)
(1.9)
(4.1)
(6.0)
7.7
1.5
13.5
(8.2)
0.0
(8.2)
(5.4)
0.0
0.8
(6.2)
(0.9)
(6.0)
(6.9)
8.2
1.6
14.6
(8.6)
0.0
(8.6)
(5.4)
0.0
0.8
(6.2)
(0.2)
(6.9)
(7.1)
2023
(65.3)
38.9
1.5
40.4
69.2
43.1
90.7
178.1
4.3
28.5
28.8
61.6
116.5
178.1
2023
2015
1.7
34.0
0.3
34.3
69.2
33.7
90.7
229.6
127.5
28.5
28.8
184.8
44.7
229.5
2015
2016
0.8
34.3
1.6
35.9
69.2
34.6
90.7
231.3
127.1
28.5
28.8
184.4
46.8
231.2
2016
2017
(3.3)
35.9
1.7
37.6
69.2
35.5
90.7
229.7
121.7
28.5
28.8
179.0
50.7
229.7
2017
2018
(4.1)
37.6
(0.3)
37.3
69.2
36.3
90.7
229.5
116.3
28.5
28.8
173.6
55.8
229.4
2018
2019
(6.0)
37.3
1.8
39.1
69.2
37.0
90.7
230.0
110.9
28.5
28.8
168.2
61.8
230.0
2019
2020
(6.9)
39.1
1.5
40.6
69.2
37.6
90.7
231.2
105.5
28.5
28.8
162.8
68.4
231.2
2020
2021
(7.1)
40.6
1.6
42.2
69.2
37.9
90.7
232.9
100.1
28.5
28.8
157.4
75.5
232.9
2021
3.79
1.30
57%
0.16
4.15
1.09
52%
0.17
4.55
0.91
48%
0.19
5.01
0.04
4%
4.52
1.54
2.85
74%
0.06
1.65
2.71
73%
0.06
2.05
2.40
71%
0.08
2.38
2.08
68%
0.11
2.65
1.79
64%
0.11
2.88
1.54
61%
0.13
3.13
1.33
57%
0.15
2022
661.8
18.7
6.5
12.1
8.7
1.6
8.9
10.3
0.2
5.2
3.6
5.4
(2.4)
2023
688.2
19.4
6.8
12.6
9.2
1.7
9.2
10.9
0.2
5.0
3.4
90.4
(85.3)
2022
2023
8.6
9.2
8.7
1.6
15.6
(8.9)
0.0
(8.9)
(5.4)
0.0
0.8
(6.2)
0.5
(7.1)
(6.6)
9.2
1.7
16.7
(9.2)
0.0
(9.2)
(90.4)
0.0
0.8
(91.2)
(83.7)
(6.6)
(90.4)
2022
(6.6)
42.2
1.6
43.9
69.2
38.1
90.7
235.3
94.7
28.5
28.8
152.0
83.2
235.2
2022
2023
(90.4)
43.9
1.7
45.6
69.2
38.2
90.7
153.3
4.3
28.5
28.8
61.6
91.6
153.2
2023
3.41
1.14
53%
0.17
3.74
0.05
4%
3.89
Exhibit D: Projected Financial Statements of Broadway with Mix of Debt and Equity Financing
Debt terms
Income statement
Net sales
Operating profit
Income taxes
Net income (unlevered)
Add: Depreciation and amortization
Less: Change in Net WC
Less: Capex
FCF
Interest expense (original debt)
Interest expense (new debt)
Less: after-tax interest expense
Less: retirement of LT debt
Cumulative debt cushion
2015
2016
2017
Balance sheet
Cash
Starting NWC
Change in NWC
Ending NWC
Goodwill
Net PP&E
Investments and other assets
Total assets less current liabilities
Long-term debt
Accrued expenses and deferred taxes
Other non-current liabilities
Total non-current liabilities
Shareholders 'equity
Total non-current liabilities and equity
Debt-related Ratios
2015
2016
4.9
34.0
0.3
34.3
69.2
33.5
90.7
232.6
67.5
28.5
28.8
124.8
107.8
232.6
2015
9.2
34.3
(0.3)
34.0
69.2
34.4
90.7
237.5
67.1
28.5
28.8
124.4
113.1
237.5
2016
5.5
6.2
8.6
5.2
0.3
10.4
(6.7)
0.0
(6.7)
(0.4)
0.0
0.8
(1.2)
2.4
2.5
4.9
5.7
(0.3)
12.1
(6.6)
0.0
(6.6)
(0.4)
0.0
0.8
(1.2)
4.3
4.9
9.2
6.2
0.8
13.9
(7.0)
0.0
(7.0)
(0.4)
0.0
0.8
(1.2)
5.7
9.2
14.9
2017
14.9
34.0
0.8
34.8
69.2
35.2
90.7
244.9
66.7
28.5
28.8
124.0
120.8
244.8
2017
3.50
0.63
39%
0.15
3.83
0.59
37%
0.18
4.95
0.55
36%
0.21
aid at maturity
Expected scenario
2018
575.8
19.8
6.9
12.9
6.7
0.4
7.5
11.7
0.3
3.0
2.2
0.4
24.2
2019
610.8
22.1
7.7
14.3
7.2
(0.5)
8.0
14.1
0.3
3.0
2.1
0.4
35.7
2020
636.1
23.0
8.0
14.9
7.7
1.4
8.3
12.9
0.3
3.0
2.1
60.4
(13.9)
2015
500.4
10.7
3.8
7.0
5.2
0.3
6.9
5.0
0.4
3.0
2.2
0.4
2.4
2016
497.9
11.5
4.0
7.4
5.7
1.6
6.6
4.9
0.4
3.0
2.2
0.4
4.7
2018
10.7
2019
12.2
2020
12.8
2015
2016
6.7
0.4
17.0
(7.5)
0.0
(7.5)
(0.4)
0.0
0.8
(1.2)
8.3
14.9
23.3
7.2
(0.5)
19.9
(8.0)
0.0
(8.0)
(0.4)
0.0
0.8
(1.2)
10.7
23.3
34.0
7.7
1.4
19.1
(8.3)
0.0
(8.3)
(60.4)
0.0
0.8
(61.2)
(50.4)
34.0
(16.4)
2018
23.3
34.8
0.4
35.2
69.2
35.9
90.7
254.3
66.3
28.5
28.8
123.6
130.7
254.3
2018
2019
34.0
35.2
(0.5)
34.7
69.2
36.7
90.7
265.3
65.9
28.5
28.8
123.2
142.1
265.3
2019
2020
(16.4)
34.7
1.4
36.1
69.2
37.3
90.7
216.9
5.5
28.5
28.8
62.8
154.0
216.8
2020
Pessimistic scenario
2017
2018
526.3
556.4
14.2
15.8
5.0
5.5
9.2
10.3
6.2
6.7
1.7
(0.3)
7.1
7.5
6.7
9.8
0.3
0.3
3.0
3.0
2.2
2.2
0.4
0.4
8.8
16.0
2017
2018
2019
588.3
16.8
5.9
11.0
7.2
1.8
7.9
8.4
0.3
3.0
2.1
0.4
21.9
2020
611.1
17.4
6.1
11.3
7.7
1.5
8.2
9.2
0.3
3.0
2.1
60.4
(31.4)
2019
2020
4.8
5.3
7.1
8.1
8.8
9.2
5.2
0.3
9.7
(6.9)
0.0
(6.9)
(0.4)
0.0
0.8
(1.2)
1.5
2.5
4.0
5.7
1.6
9.3
(6.6)
0.0
(6.6)
(0.4)
0.0
0.8
(1.2)
1.5
4.0
5.5
6.2
1.7
11.6
(7.1)
0.0
(7.1)
(0.4)
0.0
0.8
(1.2)
3.3
5.5
8.7
6.7
(0.3)
15.1
(7.5)
0.0
(7.5)
(0.4)
0.0
0.8
(1.2)
6.4
8.7
15.1
7.2
1.8
14.2
(7.9)
0.0
(7.9)
(0.4)
0.0
0.8
(1.2)
5.1
15.1
20.2
7.7
1.5
15.3
(8.2)
0.0
(8.2)
(60.4)
0.0
0.8
(61.2)
(54.1)
20.2
(34.0)
2018
15.1
37.6
(0.3)
37.3
69.2
36.3
90.7
248.6
66.3
28.5
28.8
123.6
125.0
248.6
2018
2019
20.2
37.3
1.8
39.1
69.2
37.0
90.7
256.2
65.9
28.5
28.8
123.2
133.0
256.2
2019
2020
(34.0)
39.1
1.5
40.6
69.2
37.6
90.7
204.2
5.5
28.5
28.8
62.8
141.3
204.1
2020
2015
2016
2017
4.0
34.0
0.3
34.3
69.2
33.7
90.7
231.9
67.5
28.5
28.8
124.8
107.1
231.9
2015
5.5
34.3
1.6
35.9
69.2
34.6
90.7
235.9
67.1
28.5
28.8
124.4
111.5
235.9
2016
8.7
35.9
1.7
37.6
69.2
35.5
90.7
241.8
66.7
28.5
28.8
124.0
117.7
241.7
2017
5.97
0.51
34%
0.26
6.68
0.46
32%
0.30
7.00
0.04
3%
3.48
3.18
0.63
39%
0.14
3.41
0.60
38%
0.14
4.26
0.57
36%
0.17
4.76
0.53
35%
0.23
5.10
0.50
33%
0.22
5.31
0.04
4%
2.79