Professional Documents
Culture Documents
Operating Results:
Revenue
Less: Cost of Goods Sold
Gross Profit
Less: Selling, General & Administrative
EBITDA
Less: Depreciation
EBIT
Less: Interest Expense
EBT
Less: Taxes
Net Income
Revenue Growth
Gross Margin
Selling, General & Administrative/Revenue
EBITDA Margin
EBIT Margin
Net Income Margin
Effective Tax Rate
2003
$503.4
405.2
98.2
37.8
60.4
6.8
53.6
5.5
48.1
19.2
$28.9
Margins:
NA
19.5%
7.5%
12.0%
10.6%
5.7%
39.9%
2004
$543.7
432.3
111.4
44.6
66.8
6.2
60.6
5.8
54.8
22.0
$32.8
8.0%
20.5%
8.2%
12.3%
11.1%
6.0%
40.1%
2005
$587.2
496.2
91.0
45.8
45.2
6.0
39.2
5.9
33.3
13.3
$20.0
8.0%
15.5%
7.8%
7.7%
6.7%
3.4%
39.9%
2006
$636.1
513.4
122.7
51.5
71.2
5.9
65.3
5.3
60.0
24.0
$36.0
8.3%
19.3%
8.1%
11.2%
10.3%
5.7%
40.0%
2007
$680.7
558.2
122.5
49.0
73.5
6.1
67.4
3.3
64.1
25.6
$38.5
7.0%
18.0%
7.2%
10.8%
9.9%
5.7%
39.9%
Income Statement
Assets:
Cash & Cash Equivalents
Accounts Receivable
Inventory
Total Current Assets
2003
$4.3
62.1
57.7
124.1
2004
$5.1
70.1
58.0
133.2
2005
$4.8
78.8
61.2
144.8
2006
$7.8
87.1
61.9
156.8
2007
$5.0
93.3
67.3
165.6
201.4
12.3
$337.8
202.9
12.1
$348.2
203.1
11.8
$359.7
202.3
12.5
$371.6
204.4
10.8
$380.8
$42.2
$45.0
$51.6
$53.4
$58.1
91.6
82.8
73.8
65.8
54.8
204.0
$337.8
220.4
$348.2
234.3
$359.7
252.4
$371.6
267.9
$380.8
62.1
57.7
42.2
77.6
70.1
58.0
45.0
83.1
78.8
61.2
51.6
88.4
87.1
61.9
53.4
95.6
93.3
67.3
58.1
102.5
15.4%
15.3%
15.1%
15.0%
15.1%
44.4x
41.3x
34.3x
51.4x
46.4x
38.4x
34.0x
50.8x
48.3x
37.5x
34.3x
51.6x
49.3x
35.0x
34.0x
50.3x
49.3x
35.6x
34.4x
50.5x
Balance Sheet
2003
$28.9
6.8
3.1
0.5
0.3
$32.4
$7.3
0.5
$7.8
2004
$32.8
6.2
8.0
0.3
2.8
$33.5
$7.7
(0.2)
$7.5
2005
$20.0
6.0
8.7
3.2
6.6
$20.7
$6.2
(0.3)
$5.9
2006
$36.0
5.9
8.3
0.7
1.8
$34.7
$5.1
0.7
$5.8
2007
$38.5
6.1
6.2
5.4
4.7
$37.7
$8.2
(1.7)
$6.5
$8.0
14.4
$22.4
$8.8
16.4
$25.2
$9.0
6.1
$15.1
$8.0
17.9
$25.9
$11.0
23.0
$34.0
$2.2
$0.8
($0.3)
$3.0
($2.8)
Cash Flow
ho
Company:
Cathleen Sinclair
General Health & Beauty
Women's Care Company
Skin Care Enterprises
Company:
Cathleen Sinclair
General Health & Beauty
Women's Care Company
Skin Care Enterprises
Average
Market
Value
298.9
319.3
498.6
1,204.2
Net
Debt
1,329.6
63.1
55.3
371.9
Enterprise
Value
1,628.5
382.4
553.9
1,576.1
Equity
Beta
2.22
1.95
1.14
1.35
Revenue
1,346.8
446.1
397.3
1,247.6
EBITDA
255.3
61.9
52.7
155.8
EBIT
163.4
51.9
49.3
125.4
Net
Income
21.5
23.8
77.0
65.3
Book
Value
(1,112.8)
204.2
43.7
316.2
EBITDA
19.0%
13.9%
13.3%
12.5%
14.6%
EBIT
12.1%
11.6%
12.4%
10.1%
11.6%
Earnings
1.6%
5.3%
19.4%
5.2%
7.9%
Revenue
1.2x
0.9x
1.4x
1.3x
1.2x
EBITDA
6.4x
6.2x
10.5x
10.1x
8.3x
EBIT
10.0x
7.4x
11.2x
12.6x
10.3x
P/E
13.9x
13.4x
6.5x
18.4x
13.1x
P/B
NM
1.6x
11.4x
3.8x
5.6x
Comparable Companies
Company:
Cathleen Sinclair
General Health & Beauty
Women's Care Company
Skin Care Enterprises
Average
Debt/
Value
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Debt/
Equity
0.0%
5.3%
11.1%
17.6%
25.0%
33.3%
Weighted Ave
Debt/
Value
81.6%
16.5%
10.0%
23.6%
32.9%
Debt/
Equity
444.9%
19.8%
11.1%
30.9%
49.1%
Equity
Beta
2.22
1.95
1.14
1.35
1.67
Debt
Beta
0.25
0.00
0.00
0.00
0.06
Asset
Beta
0.79
1.74
1.07
1.14
1.18
Asset
Beta
1.18
1.18
1.18
1.18
1.18
1.18
Equity
Beta
1.18
1.22
1.26
1.31
1.36
1.42
Cost of
Equity
9.67%
9.86%
10.07%
10.30%
10.56%
10.86%
Cost of
Debt
7.75%
7.75%
7.75%
7.75%
7.75%
7.75%
WACC
9.67%
9.60%
9.53%
9.45%
9.38%
9.31%
Assumptions:
10-Year Treasury
Market Risk Premium
3.75%
5.00%
Tax Rate
40.0%
7.0x
514.5
49.8
57.9
107.7
Existing D/V
Estimated New D/V
9.7%
20.9%
0.00
7.75%
2009
80,000
60.0%
48,000
1.77
84,960
2010
80,000
65.0%
52,000
1.81
93,881
1.0%
3.0%
3.0%
0.94
3,600
2,250
0.95
3,708
2,318
0.96
3,819
2,387
0.97
3,934
2,459
0.98
4,052
2,532
0.99
4,173
2,608
1.00
4,299
2,687
1.01
4,428
2,767
1.02
4,560
2,850
3.5%
4
160.0
640.0
4
165.6
662.4
6
171.4
1,028.4
6
177.4
1,064.4
6
183.6
1,101.6
6
190.0
1,140.2
6
196.7
1,180.1
6
203.6
1,221.4
6
210.7
1,264.1
20.00
2,000
40,000
450
18,000.0
20.70
2,000
41,400
473
19,570.9
21.42
2,000
42,849
509
21,814.0
22.17
2,000
44,349
545
24,190.2
22.95
2,000
45,901
582
26,706.0
23.75
2,000
47,507
618
29,368.2
24.59
2,000
49,170
618
30,396.1
25.45
2,000
50,891
618
31,460.0
26.34
2,000
52,672
618
32,561.1
18,640.0
20,233.3
22,842.4
25,254.6
27,807.6
30,508.4
31,576.2
32,681.4
33,825.2
2.0%
3.5%
2011
80,000
70.0%
56,000
1.84
103,124
2012
80,000
75.0%
60,000
1.88
112,700
2013
80,000
80.0%
64,000
1.92
122,618
2014
80,000
85.0%
68,000
1.95
132,887
2015
80,000
85.0%
68,000
1.99
135,545
2016
80,000
85.0%
68,000
2.03
138,256
2017
80,000
85.0%
68,000
2.07
141,021
7.8%
7.8%
7.8%
7.8%
7.8%
7.8%
7.8%
7.8%
7.8%
47.6x
37.6x
34.2x
47.6x
37.6x
34.2x
47.6x
37.6x
34.2x
47.6x
37.6x
34.2x
47.6x
37.6x
34.2x
47.6x
37.6x
34.2x
47.6x
37.6x
34.2x
47.6x
37.6x
34.2x
47.6x
37.6x
34.2x
0.38
0.38
0.39
0.40
0.42
0.43
0.45
0.46
0.48
0.05
0.06
0.06
0.06
0.06
0.06
0.06
0.06
0.06
Operating Assumptions
2018
80,000
85.0%
68,000
2.12
143,841
1.03
4,697
2,936
6
218.1
1,308.4
27.26
2,000
54,516
618
33,700.7
35,009.1
7.8%
47.6x
37.6x
34.2x
0.50
3.15%
0.06
0.34%
Cost Components:
Facility Expansion
Manufacturing Equipment
Packaging Equipment
Working Capital (1)
Total Investment
Amount
$10,000
20,000
15,000
12,868
57,868
Est. Life
20yrs.
10yrs.
10yrs.
Percent
Cost of
Depr' Maintenance Maintenance
500
5.0%
500
2,000
5.0%
1,000
1,500
5.0%
750
0
0.0%
0
4,000
2,250
Investment
2004
2005
2006
2007
5.7%
8.6%
14.2%
10.9%
19.5%
6.0%
9.4%
14.9%
12.0%
20.5%
3.4%
5.6%
8.5%
7.6%
15.5%
5.7%
9.7%
14.3%
12.3%
19.3%
5.7%
10.1%
14.4%
12.5%
18.0%
7.76
7.45
4.08
2.68
1.56
7.45
8.11
4.06
2.89
1.63
7.30
8.29
4.06
3.14
1.71
7.30
8.29
4.11
3.33
1.79
2.96
1.67
0.11
0.37
0.58
1.6x
10.45
11.52
0.64
2.81
1.62
0.09
0.35
0.54
1.5x
6.64
7.66
0.61
2.94
1.78
0.15
0.32
0.47
1.5x
12.32
13.43
0.58
2.85
1.69
0.09
0.30
0.42
1.4x
20.42
22.27
0.56
Profitability Ratios
Profit Margin
Return on Assets (ROA)
Return on Equity (ROE)
Return on Invested Capital (ROIC)
Gross Margin
2.94
1.57
0.10
0.40
0.66
1.7x
9.75
10.98
0.67
Year: 2007
Company:
Market Value
Cathleen Sinclair
298.9
General Health & Beauty
319.3
Women's Care Company
498.6
Skin Care Enterprises
1,204.2
Average (Excluding Cathleen Sinclair)
674.0
Median (Excluding Cathleen Sinclair)498.6
Max (Excluding Cathleen Sinclair) 1,204.2
Min (Excluding Cathleen Sinclair) 319.3
Hansson Private Label
406.8
Company:
EBITDA/Revenue
EBIT/Renevue
Earnings/RevenueEV/RevenueEV/EBITDAEV/EBIT
Cathleen Sinclair
19.0%
12.1%
1.6%
1.2x
6.4x
10.0x
General Health & Beauty
13.9%
11.6%
5.3%
0.9x
6.2x
7.4x
Women's Care Company
13.3%
12.4%
19.4%
1.4x
10.5x
11.2x
Skin Care Enterprises
12.5%
10.1%
5.2%
1.3x
10.1x
12.6x
Average (Exluding Cathleen Sinclair)13.2%
11.4%
10.0%
1.2x
8.9x
10.4x
Median (Excluding Cathleen Sinclair)13.3%
11.6%
5.3%
1.3x
10.1x
11.2x
Max (Excluding Cathleen Sinclair) 13.9%
12.4%
19.4%
1.4x
10.5x
12.6x
Min (Excluding Cathleen Sinclair) 12.5%
10.1%
5.2%
0.9x
6.2x
7.4x
Hansson Private Label
10.8%
9.9%
5.7%
0.8x
7.0x
7.6x
P/E
13.9x
13.4x
6.5x
18.4x
12.8x
13.4x
18.4x
6.5x
10.6x
P/B
NM
1.6x
11.4x
3.8x
5.6x
3.8x
11.4x
1.6x
1.5x
Book Value
Time Period
2008
2009
2010
2011
2012
2013
2014
2015
2016
84,960
45,120
18,640
3,600
2,250
6,627
8,723
4,000
4,723
1,889
2,834
93,881
49,369
20,233
3,708
2,318
7,323
10,930
4,000
6,930
2,772
4,158
103,124
53,698
22,842
3,819
2,387
8,044
12,334
4,000
8,334
3,334
5,000
112,700
58,109
25,255
3,934
2,459
8,791
14,154
4,000
10,154
4,061
6,092
122,618
62,603
27,808
4,052
2,532
9,564
16,059
4,000
12,059
4,824
7,235
132,887
67,181
30,508
4,173
2,608
10,365
18,051
4,000
14,051
5,620
8,431
135,545
67,852
31,576
4,299
2,687
10,573
18,559
4,000
14,559
5,823
8,735
138,256
68,531
32,681
4,428
2,767
10,784
19,065
4,000
15,065
6,026
9,039
2,834
4,000
12,865
4,158
4,000
1,473
5,000
4,000
1,443
6,092
4,000
1,529
7,235
4,000
1,586
8,431
4,000
1,644
8,735
4,000
425
9,039
4,000
432
Operating Results:
Revenue
Less: Raw Material Costs
Less: Labor Expense
Less: Manufacturing Overhead
Less: Maintenance Expense
Less: Selling, General & Administrative Expense
EBITDA
Less: Depreciation
EBIT
Less: Taxes
NOPAT
Un-Levered Free Cash Flow
NOPAT
Plus: Depreciation
Less: Change in Net Working Capital
Plus: Net Working Capital Recovery
Less: Initial Investment
Un-Levered Free Cash Flow
45,000
######
(6,031)
6,685
7,558
8,563
9,649
10,787
12,310
12,607
9.38%
######
######
(5,514)
(50,514)
5,588
(44,926)
5,775
(39,151)
5,982
(33,168)
6,164
(27,005)
6,299
(20,705)
6,573
(14,133)
6,154
(7,979)
NPV
IRR
Payback Period (Break even point)
12,255
13%
9.15
11,234
8,874
7,243
12,865
12,413
9,805
7,880
14,338
13,635
10,771
8,625
15,781
14,901
11,771
9,362
17,310
16,213
12,807
10,123
18,896
17,571
13,879
10,909
20,541
17,922
14,157
11,114
20,965
18,280
14,440
11,323
21,397
Accounts Receivable
Plus: Inventory
Less: Accounts Payable
Net Working Capital
10
2017
2018
141,021
69,216
33,825
4,560
2,850
11,000
19,569
4,000
15,569
6,228
9,342
143,841
69,908
35,009
4,697
2,936
11,220
20,071
4,000
16,071
6,429
9,643
9,342
4,000
440
9,643
4,000
447
22,284
12,902
35,480
5,758
(2,221)
14,476
12,255
18,646
14,729
11,538
21,837
19,019
15,023
11,758
22,284
Revenue (Cashflow)
NPV
Original Assumption+10%
Utilization rate assumption *1.1
Original Assumption Original utilization rate assumption
Original Assumption-10%
Utilization rate assumption *0.9
Variance/Sensitivity
(measured by standard
20,776
12,255
3,734
8521
1st
Original Assumption+10%
Selling Price Per Unit - Growing at 2.0%*1.1
15,548
Original Assumption Selling Price Per Unit - Growing at 2.0% 12,255
Original Assumption-10%
Selling Price Per Unit - Growing at 2.0%*0.9
8,996
3276
4th
Costs (Cashflow)
NPV
Variance/Sensitivity
(measured by standard
Original Assumption+10%
Average Fully Loaded Hourly Cost at 3.5%*1.1
10,840
Original Assumption Average Fully Loaded Hourly Cost at 3.5%
12,255
Original Assumption-10%
Average Fully Loaded Hourly Cost at 3.5%*0.9
13,646
1403
6th
Original Assumption+10%
Raw Materials Per Unit Growing at 1.0%*1.1
11,339
Original Assumption Raw Materials Per Unit Growing at 1.0% 12,255
Original Assumption-10%
Raw Materials Per Unit Growing at 1.0%*0.9
13,167
914
7th
Working Capital
NPV
Variance/Sensitivity
(measured by standard
11,493
12,255
13,018
763
8th
11,653
12,255
12,857
602
9th
12,734
12,255
11,777
479
10th
NPV
8,723
12,255
15,695
NPV
7,755
12,255
16,755
NPV
10,304
12,255
14,360
Variance/Sensitivity
(measured by standard
3486
3rd
Variance/Sensitivity
(measured by standard
4500
2nd
Variance/Sensitivity
(measured by standard
2029
5th