Professional Documents
Culture Documents
Revenue Projections:
Service Revenue
Service Revenue Growth
Operating Assumptions
2008
4,194.3
14.0%
2009
4,781.5
14.0%
2010
5,379.2
12.5%
2011
5,917.2
10.0%
2012
6,331.4
7.0%
Equipment Revenue
Equipment Revenue/Service Revenue (1)
314.8
7.5%
358.8
7.5%
403.7
7.5%
444.1
7.5%
475.2
7.5%
Operating Expenses:
System Operating Expenses
System Operating Exp./Service Revenue
838.9
20.0%
956.3
20.0%
1,075.8
20.0%
1,183.4
20.0%
1,266.3
20.0%
755.5
240.0%
861.2
240.0%
968.9
240.0%
1,065.8
240.0%
1,140.4
240.0%
1,803.6
40.0%
2,056.2
40.0%
2,313.2
40.0%
2,544.5
40.0%
2,722.6
40.0%
705.2
15.64%
40.0%
804.0
15.64%
40.0%
867.4
15.00%
40.0%
922.4
14.50%
40.0%
952.9
14.00%
40.0%
41.67x
154.36x
1.38%
35.54x
14.01x
6.85x
41.67x
154.36x
1.38%
35.54x
14.01x
6.85x
41.67x
154.36x
1.38%
35.54x
14.01x
6.85x
41.67x
154.36x
1.38%
35.54x
14.01x
6.85x
41.67x
154.36x
1.38%
35.54x
14.01x
6.85x
631.3
14.0%
719.7
14.0%
867.4
15.0%
970.1
15.3%
1,055.0
15.5%
522
135
595
154
669
173
736
190
788
204
(1) Based on a 360-day year. Days Payable, Deferred Service Revenue, and Days Accrued Liabilities are
based on total cash operating expenses.
(2) Includes investments in property, plant & equipment, as well as licenses and customer lists.
AIRTHREAD ACQUISITION
Licensing Agreemts
AIRTHREAD ACQUISITION
Customer Data:
Net Customer Additions
Cost Per Customer Addition
Cost of New Customer Additions
Cost of Equipment Sold/Equipment Revenue
2005
301
372
111,972
2006
310
385
119,350
2007
477
487
232,299
251.3%
219.9%
239.8%
2.1%
2.1%
1.7%
2005
45.24
625
0.0724
2006
47.23
704
0.0671
2007
51.13
859
0.0595
AIRTHREAD ACQUISITION
Income Statement
Operating Results:
Service Revenue
Plus: Equipment Sales
Total Revenue
Less: System Operating Expenses
Less: Cost of Equipment Sold
Less: Selling, General & Administrative
EBITDA
Less: Depreciation & Amortization
EBIT
Less: Interest Expense
Plus: Equity in Earnings of Affiliates
Plus: Gains (Losses) on Investments
Plus: Other Income
EBT
Less: Taxes
Income Before Minority Interest
Less: Minority Interest
Net Income
2005
2,827.0
203.7
3,030.8
604.1
511.9
1,217.7
697.0
490.1
206.9
84.9
66.7
18.1
54.5
261.3
95.9
165.5
10.5
155.0
2006
3,214.4
258.7
3,473.2
639.7
568.9
1,399.6
865.0
555.5
309.5
93.7
93.1
50.8
(46.6)
313.1
120.6
192.5
13.0
179.5
2007
3,679.2
267.0
3,946.3
717.1
640.2
1,555.6
1,033.3
582.3
451.1
84.7
90.0
83.1
7.0
546.5
216.7
329.8
15.1
314.7
40
12
AIRTHREAD ACQUISITION
Assets:
Cash & Cash Equivalents
Marketable Securities
Accounts Receivable
Inventory
Prepaid Expenses
Deferred Taxes
Other Current Assets
Total Current Assets
Property, Plan & Equipment
Licenses
Customer Lists
Marketable Equity Securities
Investments in Affiliated Entities
Long Term Note Receivable
Goodwill
Other Long Term Assets
Total Assets
Liabilities & Owners' Equity:
Accounts Payable
Deferred Revenue & Deposits
Accrued Liabilities
Taxes Payable
Deferred Taxes
Note Payable
Forward Contract
Derivative Liability
Other Current Liabilities
Total Current Liabilities
Long Term Debt
Forward Contracts
Derivative Liability
Deferred Tax Liability
Asset Retirement Obligation
Other Deferred Liabilities
Minority Interest
Common Stock & Paid-In Capital
Retained Earnings
Total Liabilities & Owners' Equity
Balance Sheet
2005
29.0
0.0
362.4
92.7
32.1
8.2
15.5
539.9
2006
32.9
249.0
407.4
117.2
35.0
0.0
13.4
854.9
2007
204.5
16.4
435.5
101.0
41.6
18.6
16.2
833.8
2,553.0
1,362.3
47.6
225.4
172.1
4.7
481.2
30.0
5,416.2
2,628.8
1,494.3
26.2
4.9
150.3
4.5
485.5
31.1
5,680.6
2,595.1
1,482.4
15.4
0.0
157.7
4.4
491.3
31.8
5,611.9
254.1
111.4
42.9
36.7
0.0
135.0
0.0
0.0
82.6
662.7
254.9
123.3
47.8
26.9
26.3
35.0
159.9
88.8
93.7
856.7
260.8
143.4
59.2
43.1
0.0
0.0
0.0
0.0
97.7
604.2
1,001.4
159.9
25.8
647.1
90.2
46.2
1,001.8
0.0
0.0
601.5
127.6
62.9
1,002.3
0.0
0.0
554.4
126.8
84.5
41.9
36.7
43.4
1,375.0
1,366.0
5,416.2
1,378.9
1,614.4
5,680.6
1,404.1
1,792.1
5,611.9
AIRTHREAD ACQUISITION
Amortization Schedule
Date:
1/31/2008
2/28/2008
3/31/2008
4/30/2008
5/31/2008
6/30/2008
7/31/2008
8/31/2008
9/30/2008
10/31/2008
11/30/2008
12/31/2008
1/31/2009
2/28/2009
3/31/2009
4/30/2009
5/31/2009
6/30/2009
7/31/2009
8/31/2009
9/30/2009
10/31/2009
11/30/2009
12/31/2009
1/31/2010
2/28/2010
3/31/2010
4/30/2010
5/31/2010
6/30/2010
7/31/2010
8/31/2010
9/30/2010
10/31/2010
11/30/2010
12/31/2010
1/31/2011
2/28/2011
3/31/2011
4/30/2011
5/31/2011
Payment
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
Annual
Interest
5.50%
17
17
17
17
17
17
17
16
16
16
16
16
16
16
16
16
15
15
15
15
15
15
15
15
14
14
14
14
14
14
14
14
14
13
13
13
13
13
13
13
12
Principal
24
24
24
24
24
24
24
24
24
25
25
25
25
25
25
25
25
25
26
26
26
26
26
26
26
26
27
27
27
27
27
27
27
27
28
28
28
28
28
28
28
Amortization
Balance
Period
3,758
120
3,734
1
3,710
2
3,687
3
3,663
4
3,639
5
3,615
6
3,590
7
3,566
8
3,542
9
3,517
10
3,492
11
3,468
12
3,443
13
3,418
14
3,393
15
3,367
16
3,342
17
3,317
18
3,291
19
3,265
20
3,239
21
3,214
22
3,188
23
3,161
24
3,135
25
3,109
26
3,082
27
3,055
28
3,029
29
3,002
30
2,975
31
2,948
32
2,920
33
2,893
34
2,865
35
2,838
36
2,810
37
2,782
38
2,754
39
2,726
40
2,698
41
Date:
6/30/2011
7/31/2011
8/31/2011
9/30/2011
10/31/2011
11/30/2011
12/31/2011
1/31/2012
2/28/2012
3/31/2012
4/30/2012
5/31/2012
6/30/2012
7/31/2012
8/31/2012
9/30/2012
10/31/2012
11/30/2012
12/31/2012
Payment
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
41
2,176
Annual
Interest
5.50%
12
12
12
12
12
12
12
11
11
11
11
11
11
11
10
10
10
10
10
Principal
28
29
29
29
29
29
29
29
29
30
30
30
30
30
30
30
31
31
2,166
Amortization
Balance
Period
2,698
84
2,669
42
2,641
43
2,612
44
2,583
45
2,554
46
2,525
47
2,496
48
2,467
49
2,437
50
2,408
51
2,378
52
2,348
53
2,318
54
2,288
55
2,257
56
2,227
57
2,196
58
2,166
59
0
60
AIRTHREAD ACQUISITION
Equity
Comparable Companies:
Market Value
Universal Mobile
118,497
Neuberger Wireless
189,470
Agile Connections
21,079
Big Country Communications
26,285
Rocky Mountain Wireless
7,360
Average
Net
Debt
69,130
79,351
5,080
8,335
3,268
Debt/
Value
36.8%
29.5%
19.4%
24.1%
30.7%
28.1%
Debt/
Equity
58.3%
41.9%
24.1%
31.7%
44.4%
40.1%
Equity
Beta
0.86
0.89
1.17
0.97
1.13
1.00
Revenue
43,882
42,684
34,698
38,896
4,064
EBIT EBITDA
11,795
16,949
7,020
14,099
1,631
9,914
6,702
12,614
510
1,028
Bl= Bu(1+(1-t)D/V)
So
Bu=BL/(1+(1-t)D/V)
Net
Income
3,794
4,103
(30)
3,384
240
unleavered beta
0.637
0.711
1.022
0.815
0.892
0.82
Rf=4.25
Re
8.350
Rpm=5
beta =.82
2008
0.30
859
258
0.0506
156
2008
838.9
20.0%
167.8
0.0%
0.0
2009
0.50
885
442
0.0506
269
2009
956.3
20.0%
191.3
7.0%
13.4
2010
0.70
911
638
0.0506
387
2011
1.00
939
939
0.0506
570
2012
1.20
967
1,160
0.0506
704
2010
1,075.8
20.0%
215.2
12.0%
25.8
2011
1,183.4
20.0%
236.7
22.2%
52.5
2012
1,266.3
20.0%
253.3
30.0%
76.0
#REF!
Revenue Projections:
Service Revenue
Equipment Revenue
Operating Expenses:
System Operating Expenses
Cost of Equipment Sold
Selling, General & Administrative
Depreciation & Amortization
Tax Rate
Working Capital Assumptions (1):
Accounts Receivable
Days Sales Equip. Rev.
Prepaid Expenses
Accounts Payable
Deferred Serv. Revenue
Accrued Liabilities
Capital Expenditures (2):
Capital Expenditures
2008
4,194.3
314.8
2009
4,781.5
358.8
2010
5,379.2
403.7
2011
5,917.2
444.1
2012
6,331.4
475.2
838.9
755.5
1,803.6
705.2
40.0%
956.3
861.2
2,056.2
804.0
40.0%
1,075.8
968.9
2,313.2
867.4
40.0%
1,183.4
1,065.8
2,544.5
922.4
40.0%
1,266.3
1,140.4
2,722.6
952.9
40.0%
41.67x
154.36x
1.38%
35.54x
14.01x
6.85x
41.67x
154.36x
1.38%
35.54x
14.01x
6.85x
41.67x
154.36x
1.38%
35.54x
14.01x
6.85x
41.67x
154.36x
1.38%
35.54x
14.01x
6.85x
41.67x
154.36x
1.38%
35.54x
14.01x
6.85x
631.3
719.7
867.4
970.1
1,055.0
522
135
595
154
669
173
736
190
788
204
EBIDTA
Dep and amortization
EBIT
tax rate
EBIT(1-t)
Accounts Receivable
Days Sales Equip. Rev.
Prepaid Expenses
Accounts Payable
Deferred Serv. Revenue
Accrued Liabilities
521.8951263
134.9679175
46.91482791
335.4213192
163.2542474
64.60903987
594.9604
153.8634
53.4829
382.3803
186.1098
73.65431
669.3305
173.0964
60.16827
430.1778
209.3736
82.86109
736.2635
190.406
66.18509
473.1956
230.3109
91.1472
787.802
203.7344
70.81805
506.3193
246.4327
97.52751
Working capital
Change in WC
Capital Expenditures
Unleavered FCF
PV found by discounting at 8.35%
Interest Expense
Tax sheild
PV of tax sheild @ 5.5%
140.4932652
25.49326522
631.3
292.01
269.50
199
79.6
75.45023697
160.1623
19.66906
719.7
342.28
291.5594
183
73.2
65.76672
180.1826
20.02029
867.4
314.54
247.2793
166
66.4
56.54715
198.2009
18.01826
970.1
321.37
233.1802
148
59.2
47.78723
212.0749
13.87406
1,055.0
318.64
213.3835 1,254.91
128
51.2
39.17488 284.7262
Total Value
1,539.63
Net Reinvestment
116
Growthrate
2.87
Interest Expense
199.000
r= 7.52
growth rate=Rinvestment
Reinvestment Rate*rROIC
Rate*ROIC
Capex+Change in WC-Dep/(EBIT)*EBIT(1-t)/(d+e)
1068.511
Assets:
Cash & Cash Equivalents
Marketable Securities
Accounts Receivable
Inventory
Prepaid Expenses
Deferred Taxes
Other Current Assets
Total Current Assets
Property, Plan & Equipment
Licenses
Customer Lists
Marketable Equity Securities
Investments in Affiliated Entities
Long Term Note Receivable
Goodwill
Other Long Term Assets
Total Assets
Liabilities & Owners' Equity:
Accounts Payable
Deferred Revenue & Deposits
Accrued Liabilities
Taxes Payable
Deferred Taxes
Note Payable
Forward Contract
Derivative Liability
Other Current Liabilities
Total Current Liabilities
Long Term Debt
Forward Contracts
Derivative Liability
Deferred Tax Liability
Asset Retirement Obligation
Other Deferred Liabilities
Minority Interest
Common Stock & Paid-In Capital
Retained Earnings
Total Liabilities & Owners' Equity
2005
29.0
0.0
362.4
92.7
32.1
8.2
15.5
539.9
2006
32.9
249.0
407.4
117.2
35.0
0.0
13.4
854.9
2007
204.5
16.4
435.5
101.0
41.6
18.6
16.2
833.8
2,553.0
1,362.3
47.6
225.4
172.1
4.7
481.2
30.0
5,416.2
2,628.8
1,494.3
26.2
4.9
150.3
4.5
485.5
31.1
5,680.6
2,595.1
1,482.4
15.4
0.0
157.7
4.4
491.3
31.8
5,611.9
254.1
111.4
42.9
36.7
0.0
135.0
0.0
0.0
82.6
662.7
254.9
123.3
47.8
26.9
26.3
35.0
159.9
88.8
93.7
856.7
260.8
143.4
59.2
43.1
0.0
0.0
0.0
0.0
97.7
604.2
1,001.4
159.9
25.8
647.1
90.2
46.2
1,001.8
0.0
0.0
601.5
127.6
62.9
1,002.3
0.0
0.0
554.4
126.8
84.5
41.9
36.7
43.4
1,375.0
1,366.0
5,416.2
1,378.9
1,614.4
5,680.6
1,404.1
1,792.1
5,611.9
2008
87.0
16.0
522.0
135.0
47.0
19.0
16.0
842.0
2009
14.0
16.0
594.0
154.0
53.0
19.0
16.0
866.0
2010
0.0
16.0
670.0
173.0
60.0
19.0
16.0
954.0
2011
0.0
16.0
736.0
190.0
66.0
19.0
16.0
1,043.0
2012
0.0
16.0
787.0 <---- from sheet 1
203.0
70.0
19.0
16.0
1,111.0
2009
2010
2011
2012
14
-97
-207
-2462
PPE
PPE2007+CAPEX08-DEP08