Professional Documents
Culture Documents
Assets
Cash & Cash Equivlents
Marketable Securitiies
Accounts Recievable
Inventory
Prepaid Expenses
Deferred Taxes
Other Current Assets
Total Current Assets
PPE
Licenses
Customer Lists
Marketable Equity Securities
Investments in Affiliated Entities
Long-Tern Note Recievable
Goodwill
Other Long-Term Assets
Total Assets
Liabilities & Owner's 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
2553.0
1362.3
47.6
225.4
172.1
4.7
481.2
30.0
5416.2
2628.8
1494.3
26.2
4.9
150.3
4.5
485.5
31.1
5680.5
2595.1
1482.4
15.4
0.0
157.7
4.4
491.3
31.8
5611.9
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
856.6
260.8
143.4
59.2
43.1
0.0
0.0
0.0
0.0
97.7
604.2
1001.4
159.9
25.8
647.1
90.2
46.2
1001.8
0.0
0.0
601.5
127.6
62.9
1002.3
0.0
0.0
554.4
126.8
84.5
41.9
36.7
43.4
1375.0
1366.0
5416.2
1378.9
1614.4
5680.4
1404.1
1792.1
5611.8
Assets
Cash & Cash Equivlents
Marketable Securitiies
Accounts Recievable
Inventory
Prepaid Expenses
Deferred Taxes
Other Current Assets
Total Current Assets
PPE
Licenses
Customer Lists
Marketable Equity Securities
Investments in Affiliated Entities
Long-Tern Note Recievable
Goodwill
Other Long-Term Assets
Total Assets
Liabilities & Owner's 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
Net Income
2005
29.0
0.0
362.4
92.7
32.1
8.2
15.5
539.9
Difference
3.9
249.0
45.0
24.5
2.9
(8.2)
(2.1)
315.0
2553.0
1362.3
47.6
225.4
172.1
4.7
481.2
30.0
5416.2
75.8
132.0
(21.4)
(220.5)
(21.8)
(0.2)
4.3
1.1
264.3
2628.8
1494.3
26.2
4.9
150.3
4.5
485.5
31.1
5680.5
(33.7)
(11.9)
(10.8)
(4.9)
7.4
(0.1)
5.8
0.7
(68.6)
254.1
111.4
42.9
36.7
0.0
135.0
0.0
0.0
82.6
662.7
0.8
11.9
4.9
(9.8)
26.3
(100.0)
159.9
88.8
11.1
193.9
254.9
123.3
47.8
26.9
26.3
35.0
159.9
88.8
93.7
856.6
5.9
20.1
11.4
16.2
(26.3)
(35.0)
(159.9)
(88.8)
4.0
(252.4)
1001.4
159.9
25.8
647.1
90.2
46.2
0.4
(159.9)
(25.8)
(45.6)
37.4
16.7
1001.8
0.0
0.0
601.5
127.6
62.9
0.5
0.0
0.0
(47.1)
(0.8)
21.6
41.9
(5.2)
36.7
1375.0
1366.0
5416.2
155
3.9
248.4
264.2
2006
Difference
32.9
171.6
249.0
(232.6)
407.4
28.1
117.2
(16.2)
35.0
6.6
0.0
18.6
13.4
2.8
854.9
(21.1)
1378.9
1614.4
5680.4
179.5
6.7
25.2
177.7
(68.6)
2007
2008
204.5
16.4
435.5
101.0
41.6
18.6
16.2
833.8 952.736197
985.697729
2595.1
1482.4
15.4
0.0
157.7
4.4
491.3
31.8
5611.9
2009
2010
1086.103629 1221.87979
1142.941143 1303.64974
Current Assets
Current Liab
Working Capital
Change Wk Cap
2005
539.9
662.7
-122.8
2011
2012
1344.091009 1438.17928
1464.527378 1586.92876
2006
854.9
856.6
-1.7
2007
833.8
604.2
229.6
231.300
260.8
143.4
Working Capital
229.6
59.2
Change Wk Capital
231.3
43.1
0.0
0.0
0.0
0.0
97.7
604.2 690.385236 787.0278394 885.415889
973.9743196 1042.1539
714.27029 828.2142466 944.669196
1061.246632 1149.94286
1002.3
0.0
0.0
554.4
126.8
84.5
43.4
1404.1
1792.1
5611.8
314.7
(w/o synergies)
(with synergies)
2008
952.7
690.4
262.4
32.751
2011
1344.1
974.0
370.1
33.653
2012
1438.2
1042.2
396.0
25.909
436.9859
33.7
(w/o synergies)
(with synergies)
2009
1086.1
787.0
299.1
36.725
2010
1221.9
885.4
336.5
37.388
2005
3.6%
5.7%
87.3%
2006
5.0%
6.0%
94.4%
2007
7.1%
9.8%
103.4%
$155.00
$3,030.80
$179.50
$3,473.20
$314.70
$3,946.30
2719.3
3471.7
2991.7
3679.2
3211.2
3816.5
2008
$839.90
20.0%
168.0
0.0%
$0.0
2009
$956.30
20.0%
191.3
7.0%
$13.4
2010
$1,075.80
20.0%
215.2
12.0%
$25.8
2008
0.30
859
258
0.0506
156
2009
0.50
885
443
0.0506
269
2010
0.70
911
638
0.0506
387
Potential Synergies
Table 4
Backhaul Savings
System Operating Expenses
Backhaul Percentage
Estinated Backhaul Costs
Reduction in Backhaul Costs
Backhaul Savings
Table 5
2011
$1,183.40
20.0%
236.7
22.2%
$52.5
2012
$1,266.30
20.0%
253.3
30.0%
$76.0
2011
1.00
939
939
0.0506
570
2012
1.20
967
1160
0.0506
704
$65,173
$97,735
$37,942
$47,314
$5,299
Comparable Companies
EBIT Margin
Universal Mobile
26.90%
Neuberger Wireless
16.40%
Agile Connections
4.70%
Big Country Communications
17.20%
Rocky Mountain Wireless
12.60%
Average
15.60%
AirThread
11.40%
Universal Mobile
Market Value Ratios
EV/Revenue
EV/EBIT
EV/EBITDA
EV/Net Income
AirThread's Numbers:
2007 Numbers
60,160
27,757
9,144
15,003
2,353
Neuberger Wireless
Agile Connections Big Country Communications
$2.94
$17.88
$8.90
$30.59
EBIT
3,946.30
11,795
7,020
1,631
6,702
510
46.80%
Table 3
EBITDA MarginNet Income Margin
38.60%
8.60%
33.00%
9.60%
28.60%
-0.10%
32.40%
8.70%
25.30%
5.90%
31.60%
6.60%
26.20%
8.00%
$2.86
$10.63
$7.39
$33.03
Revenue
43,882
42,684
34,698
38,896
4,064
30.30%
$1.36
$28.87
$4.75
($1,569.53)
EBITDA
451.1
$1.60
$9.30
$4.94
$18.42
Net Income
582.3
314.7
$7,170.47
EV/Revenue
EV/EBIT
EV/EBITDA
$1.82
$15.90
Enterprise Value
Revenue
EBIT
$7,170.47
3,946.30
$7,652
4,064
$12.31
EBITDA
451.1
510
582.3
1,028
EBITDA
Net Income
16,949
14,099
9,914
12,614
1,028
3,794
4,103
-30
3,384
240
Enterprise Value
$125,333
$125,492
$47,086
$62,317
$7,652
$2.13
$16.33
$6.69
($291.12)
Using Median
Using Universal Mobile
Using Neuberger Wireless
Using Agile Communications
Using Big Country Communications
Using Rocky Mountain Wireless
$3,893.12
$4,303.20
$4,305.94
$5,182.92
$2,765.60
$2,876.74
$4,334.40
$3,951.70
$4,607.75
$1.88
$15.00
$7.39
$30.59
Using Median
Using Universal Mobile
Using Neuberger Wireless
Using Agile Communications
Using Big Country Communications
Using Rocky Mountain Wireless
EV/Net Income
$22.79
Net Income
314.7
240
($91,616.40)
$9,626.67
$10,395.97
$9,625.23
($493,932.14)
$5,795.26
$10,033.69
($77,153.10)
$8,962.54
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
2827.0
203.7
3030.7
604.1
511.9
1217.7
697.0
490.1
206.9
84.9
66.7
18.1
54.5
261.3
95.9
165.4
10.5
154.9
2006
3214.4
258.7
3473.1
639.7
568.9
1399.6
864.9
555.5
309.4
93.7
93.1
50.8
-46.6
313.0
120.6
192.4
13.0
179.4
2007
3679.2
267
3946.2
717.1
640.2
1555.6
1033.3
582.3
451.0
84.7
90.0
83.1
7.0
546.4
216.7
329.7
15.1
314.6
2008
4194.3
314.8
156
4665.1
839.9
0.0
755.5
1803.6
1266.1
705.2
560.9
2009
4781.5
358.8
269
5409.3
956.3
13.4
861.2
2056.2
1549.0
804
745.0
2010
5379.2
403.7
387
6169.9
1075.8
25.8
968.9
2313.2
1837.8
867.4
970.4
With Synergies
Operating Results
Service Revenue
Plus: Equipment Sales
Plus: Business Revenue Increase
Total Revenue
Less: System Operating Expenses
Plus: Backhaul Savings
Less: Cost of Equipment Sold
Less: Selling, General & Administrative
EBITDA
Less: Depreciation & Amortization
EBIT
2008
4194.3
314.8
4509.1
839.9
755.5
1803.6
1110.1
705.2
404.9
2009
4781.5
358.8
5140.3
956.3
861.2
2056.2
1266.6
804
462.6
2010
5379.2
403.7
5782.9
1075.8
968.9
2313.2
1425.0
867.4
557.6
2011
5917.2
444.1
6361.3
1183.4
1065.8
2544.5
1567.6
922.4
645.2
2012
6331.4
475.2
6806.6
1266.3
1140.4
2722.6
1677.3
952.9
724.4
2011
5917.2
444.1
570
6931.3
1183.4
52.5
1065.8
2544.5
2190.1
922.4
1267.7
2012
6331.4
475.2
704
7510.6
1266.3
76.0
1140.4
2722.6
2457.3
952.9
1504.4
2012
0.07000141
1.07000141
2012
8.36%
1.0835774
WACC CALCULATION
$65,173
$97,735
$37,942
$47,314
$5,299
60,160
27,757
9,144
15,003
2,353
4.25%
5%
4.25 + 5(1.08)
WdRd(1-T) + WeRe
.4227(5.5)(1-.4) + .5773(9.65)
WACC =
0.069656266
Discount Rate
92.30%
41.40%
24.10%
31.70%
44.40%
46.80%
0.0965 Or
WACC
48%
29.30%
19.40%
24.10%
30.70%
30.30%
73.23%
40%
Levered Beta = Unlevered Beta ( 1+ D/E (1-T))
.9625 = Unlevered Beta (1 + .468(1-.4))
Unlevered Beta =
0.751483448
6.97%
9.65%
Weight of Debt:
Weight Equity
Cost of Debt
42.27%
57.73%
5.50%
Levered Beta
0.86
0.89
1.17
0.97
1.13
1
0.9625
Unlevered Beta
0.553481787
0.712912528
1.022191158
0.814989077
0.892293114
604.2
1002.3
554.4
126.8
84.5
Minority Interest
Common Stock
Retained Earnings
43.4
1404.1
1792.1
Total Debt
Total Equity
Total Liabilities and Equity
Calculated Ratios:
D/E
D/V
E/V
2372.2
3239.6
5611.9
0.732250895
0.422708886
0.577273294
Return on Capital =
NOPAT/BV Assets
Growth =
DATA of Airthread:
EBIT
NOPAT
CAPEX
Working Capital
Depreciation
BV Assets
451.1
270.66
548.6
229.6
582.3
5611.9
Reinvestment Rate
0.7237863
Return on Capital
0.048229655
Growth
0.034907963
Working Capital =
NOPAT =
3.49%
AirThread Projections
Working Capital Assumptions
Accounts Recievable
Days Sales Equip. Rev.
Prepaid Expenses
Accounts Payable
Deferred Serv. Revenue
Accrued Liabilities
2008
41.67x
154.36x
1.38%
35.54x
14.01x
6.85x
2009
41.67x
154.36x
1.38%
35.54x
14.01x
6.85x
2010
41.67x
154.36x
1.38%
35.54x
14.01x
6.85x
2011
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%
2007
Revenue Projections
Service Revenue
3679.2
Service Revenue Growth
Equipment Revenue
267.0
Equipment Rev/Service Rev
Total Revenue
3946.2
Total Rev Growth
Operating Expenses
System Operating Expenses
System Operating Exp/Service Revenue
Cost of Equipment Sold
Equipment COGS
Selling, General & Administrative
SG&A/Total Revenue
Depreciation & Amortization
2008
2009
2010
4194.3
14.0%
314.8
7.5%
4509.1
14.3%
4781.5
14.0%
358.8
7.5%
5140.3
14.0%
5379.2
12.5%
403.7
7.5%
5782.9
12.5%
839.9
20.0%
755.5
240.0%
1803.6
40.0%
705.2
956.3
20.0%
861.2
240.0%
2056.2
40.0%
804
1075.8
20.0%
968.9
240.0%
2313.2
40.0%
867.4
40.0%
40.0%
40.0%
Capital Expenditures
Cap-X/Total Revenue
Tax Rate
2012
41.67x
154.36x
1.38%
35.54x
14.01x
6.85x
1055
15.5%
2011
Service Revenue
Equipmet Revenue
Total Revenue
2008
3679.2
267.0
4665.1
2009
4194.3
314.8
5409.3
2010
4781.5
358.8
6169.9
5917.2
10.0%
444.1
7.5%
6361.3
10.0%
6331.4
7.0%
475.2
7.5%
6806.6
7.0%
1183.4
20.0%
1065.8
240.0%
2544.5
40.0%
922.4
1266.3
20.0%
1140.4
240.0%
2722.6
40.0%
952.9
40.0%
40.0%
2011
5379.2
403.7
6931.3
2012
5917.2
444.1
7510.6
802.297975
869.35195
DCF Valuation
Sales
EBIT
EBIT (With Synergies)
PPE
Capital Expenditures
Depreciation
Working Capital (w/o Synergies)
Change in Working Capital (w/o Synergies)
Working Capital with Synergies
Change in Working Capital with Synergies
2007
2008
2009
3946.2
4509.1
5140.3
451
404.9
462.6
451
560.9
744.9882
2595.1
3226.4
3946.1
548.6
631.3
719.7
582.3
705.2
804
229.6
262.35096 299.075789
231.3 32.7509604 36.7248289
229.6 271.427439 314.726897
231.3 41.8274391 43.2994577
Before Synergies
2007
EBIT
Less: Taxes
NOPAT
Plus: Deprectiation & Amortization
Less: Capital Expenditures
Less: Change in Working Capital
Free Cash Flow
NPV
After Synergies
EBIT (With Synergies)
Less: Taxes
NOPAT
Plus: Deprectiation & Amortization
Less: Capital Expenditures
Less: Change in Working Capital
Free Cash Flow
NPV
2008
2009
451
404.9
462.6
180.4
161.96
185.04
270.6
242.94
277.56
582.3
705.2
804
548.6
631.3
719.7
231.3 32.7509604 36.7248289
73
284.08904 325.135171
PV's 265.55341 284.09184
$7,733.61
2007
451
180.4
270.6
582.3
548.6
231.3
73
PV's
$13,848.97
$6,115.36
$1,244.63
2008
2009
560.9
744.9882
224.36
297.99528
336.54
446.99292
705.2
804
631.3
719.7
41.8274391 43.2994577
368.612561 487.993462
344.56212 426.39177
$2,268.10
2010
5782.9
557.6
970.4192
4813.5
867.4
867.4
336.463899
37.3881101
358.980548
44.2536516
2011
2012
6361.3
6806.6
645.2
724.4
1267.74296
1504.378
5783.6
6838.6
970.1
1055
922.4
952.9
370.116689 396.025381
33.65279 25.9086919
403.280746
436.9859
44.3001977 33.7051543
Enterprise Value
WACC
Terminal Growth Rate
6.98%
3.49%
2010
2011
2012
557.6
645.2
724.4
223.04
258.08
289.76
334.56
387.12
434.64
Terminal Value= sum(PV CF's)/(wacc-g)
867.4
922.4
952.9
867.4
970.1
1055
37.3881101
33.65279 25.9086919
297.17189
305.76721 306.631308 Terminal Value
242.71686 233.44283 218.82832
$9,092.63
$6,488.98
2010
970.4192
388.16768
582.25152
867.4
867.4
44.2536516
537.997868
439.41287
2011
2012
1267.74296
1504.378
507.097184
601.7512
760.645776
902.6268
922.4
952.9
970.1
1055
44.3001977 33.7051543
668.645578 766.821646 Terminal Value
510.48808 547.24449 $16,227.60
$11,580.88
3758
48.59%
PV CF's)/(wacc-g)
0.56939394
4758
34.36%
APV Valuation
2007
Sales
EBIT
EBIT (With Synergies)
PPE
Capital Expenditures
Depreciation
Working Capital (w/o Synergies)
Change in Working Capital (w/o Synergies)
Working Capital with Synergies
Change in Working Capital with Synergies
Before Synergies
3946.2
451
451
2595.1
548.6
582.3
229.6
231.3
229.6
231.3
2007
EBIT
Less: Taxes
NOPAT
Plus: Deprectiation & Amortization
Less: Capital Expenditures
Less: Change in Working Capital
Free Cash Flow
2009
5140.3
462.6
744.9882
3946.1
719.7
804
299.075789
36.7248289
314.726897
43.2994577
2008
2009
451
404.9
462.6
180.4
161.96
185.04
270.6
242.94
277.56
582.3
705.2
804
548.6
631.3
719.7
231.3 32.7509604 36.7248289
73
284.08904 325.135171
PV's 263.02738 278.71281
NPV
PV of Tax Shield
$5,990.14
Enterprise Value
$7,493.34
After Synergies
2007
2008
4509.1
404.9
560.9
3226.4
631.3
705.2
262.35096
32.7509604
271.427439
41.8274391
$1,210.90
$1,503.20
2008
2009
451
560.9
744.9882
180.4
224.36
297.99528
270.6
336.54
446.99292
582.3
705.2
804
548.6
631.3
719.7
231.3 41.8274391 43.2994577
73 368.612561 487.993462
PV's 341.28454 418.31841
NPV
PV of Tax Shield
$10,331.11
Enterprise Value
Increase in ATC Value after buyout
$11,834.31
$1,503.20
$4,340.97
$2,199.64
2010
5782.9
557.6
970.4192
4813.5
867.4
867.4
336.463899
37.3881101
358.980548
44.2536516
2011
2012
6361.3
6806.6
645.2
724.4
1267.74296
1504.378
5783.6
6838.6
970.1
1055
922.4
952.9
370.116689 396.025381
33.65279 25.9086919
403.280746
436.9859
44.3001977 33.7051543
0.75148
4.25%
5%
40%
3758
5.50%
2010
2011
2012
557.6
645.2
724.4
223.04
258.08
289.76
334.56
387.12
434.64
Terminal Value= sum(PV CF's)/(wacc-g)
867.4
922.4
952.9
867.4
970.1
1055
37.3881101
33.65279 25.9086919
297.17189
305.76721 306.631308 Terminal Value
235.85614 224.68644 208.61664
$7,024.68
$4,779.24
2010
970.4192
388.16768
582.25152
867.4
867.4
44.2536516
537.997868
426.99228
2011
2012
1267.74296
1504.378
507.097184
601.7512
760.645776
902.6268
922.4
952.9
970.1
1055
44.3001977 33.7051543
668.645578 766.821646 Terminal Value
491.33978 521.70717 $11,951.89
$8,131.47
V CF's)/(wacc-g)
PMT
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
6/30/2011
7/31/2011
8/31/2011
9/30/2011
10/31/2011
11/30/2011
Interest
5.50%
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
41
41
41
41
41
41
Principal
17
17
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
13
13
13
13
13
13
13
13
12
12
12
12
12
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
28
29
29
29
29
29
Balance
Amortization Pd.
3758
120
3734
1
3710
2
3686
3
3662
4
3638
5
3614
6
3590
7
3566
8
3542
9
3517
10
3492
11
3467
12
3442
13
3417
14
3392
15
3367
16
3342
17
3317
18
3291
19
3265
20
3239
21
3213
22
3187
23
3161
24
3135
25
3109
26
3082
27
3055
28
3028
29
3001
30
2974
31
2947
32
2920
33
2893
34
2865
35
2837
36
2809
37
2781
38
2753
39
2725
40
2697
41
2669
42
2640
43
2611
44
2582
45
2553
46
2524
47
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
41
41
41
41
41
41
41
41
41
41
41
41
2176
12
12
12
11
11
11
11
11
11
11
10
10
10
29
29
29
30
30
30
30
30
30
30
31
31
2166
2495
2466
2437
2407
2377
2347
2317
2287
2257
2227
2196
2165
-1
48
49
50
51
52
53
54
55
56
57
58
59
60