TargetCo LBO Valuation

($ in millions, except per share data)

Sources & Uses of Funds

% of Mult. of Interest
$ mm Total EBITDA Rate Spread
Sources of Funds
Excess Cash $116.6 14.3% 0.97x 2.00%
Debt Assumed 230.0 28.2% 1.91x 2.50%
Noncontrolling Interest Assumed 0.0 0.0% 0.00x
Debt
Revolver 0.0 0.0% 0.00x 7.03% L + 425
Term Loan - A 150.0 18.4% 1.24x 7.57% L + 479
Term Loan - B 0.0 0.0% 0.00x 8.78% L + 600
Senior Note 75.0 9.2% 0.62x 9.28% L + 650
Subordinated Note 0.0 0.0% 0.00x 10.25%
Mezzanine 0.0 0.0% 0.00x 10.50%
Seller Note 0.0 0.0% 0.00x 10.50%
Preferred
Preferred Stock - A 10.0 1.2% 0.08x 14.00%
Preferred Stock - B 0.0 0.0% 0.00x 14.25%
Equity
Common - Sponsor 233.6 28.7% 1.94x Current Interest Rates
Management Rollover 0.0 0.0% 0.00x
Investor Rollover 0.0 0.0% 0.00x 3-Month LIBOR
Other 0.0 0.0% 0.00x 10-Year Treasury
Total Sources $815.2 100.0% 6.76x Interest on Excess Cash
Average Interest?
Uses of Funds
Equity Purchase Price Refinance Target Debt
Existing Shareholders $563.0 69.1% 4.67x
Investor Rollover 0.0 0.0% 0.00x Refinance?
Other Uses
Fund Cash Balance 0.0 0.0% 0.00x Minimum Cash / Revolver
Assume Debt 230.0 28.2% 1.91x
Refinance Debt 0.0 0.0% 0.00x Minimum Cash Balance
Assume Noncontrolling Int. 0.0 0.0% 0.00x Total Bank Commitment
Purchase Noncontrolling Int. 0.0 0.0% 0.00x
Fees & Expenses 22.3 2.7% 0.18x Scenario
Other 0.0 0.0% 0.00x
Total Uses $815.2 100.0% 6.76x Financing Case

Income
($ in millions, except per share data)
LTM 2 Mos.
Year 0 Ended Ending
2007 3/31/2008 9/30/2008
Net Sales $402.5 $420.4 $76.4
% Growth 2.7% NA NA
COGS 207.7 219.3 39.9
% of Sales 51.6% 52.2% 52.3%
SG&A 74.8 80.5 14.7
% of Sales 18.6% 19.1% 19.3%
Other 0.0 0.0 0.0
% of Sales 0.0% 0.0% 0.0%
EBITDA $120.0 $120.6 $21.7
% Margin 29.8% 28.7% 28.4%

Bala
($ in millions, except per share data)
Historical Adjustments Pro Forma
Year 0 Mar 31 GAAP/ Closing
2007 2008 Financing Other 7/31/2008
Assets
Cash & Equivalents $132.8 $146.6 ($116.6) $30.0
Accounts Receivable 120.2 131.4 131.4
Inventories 0.0 0.0 0.0
Deferred Income Taxes 10.7 8.8 8.8
Prepaid Expenses & Other 8.5 8.2 8.2
Total Current Assets $272.2 $295.1 $178.5
PP&E, gross $168.9 $175.4 $15.0 $190.4
(Accumluated Depreciation) (136.2) (142.4) (142.4)
PP&E, net $32.7 $33.0 $48.0
Equity Investments 0.0 0.0 0.0
Capitalized Financing Costs 0.0 0.0 6.4 6.4
Goodwill, net 60.7 61.1 379.8 440.9
Intangible Assets, net 40.2 37.5 116.3 153.8
Operating Rights, net 0.0 0.0 0.0
Other Long-Term Assets 16.6 14.3 14.3
Total Assets $422.4 $440.9 $841.9

Liabilities
Short-Term Debt $0.0 $0.0 $0.0 $0.0
Accounts Payable 18.4 20.7 20.7
Accrued Liabilities 21.0 15.4 15.4
Client Deposits 26.7 0.0 0.0
Other Current Liabilities 25.1 59.1 59.1
Total Current Liabilities $91.2 $95.2 $95.2
Deferred Income Taxes $0.0 $0.0 45.9 $45.9
Capital Leases 0.0 0.0 0.0
Other Long-Term Liabilities 18.7 17.9 17.9
Revolver 0.0 0.0 0.0 0.0
Existing LT Debt (excl. current portion) 230.0 230.0 0.0 230.0
 Term Loan - A 0.0 0.0 150.0 150.0
Term Loan - B 0.0 0.0 0.0 0.0
Senior Note 0.0 0.0 75.0 75.0
Subordinated Note 0.0 0.0 0.0 0.0
Mezzanine 0.0 0.0 0.0 0.0
Seller Note 0.0 0.0 0.0 0.0
Total Liabilities $339.9 $343.1 $614.0

Shareholders' Equity
Existing Shareholders' Equity $82.5 $97.9 ($97.9) $0.0
Noncontrolling (Minority) Interest 0.0 0.0 0.0 0.0
Preferred Stock - A 0.0 0.0 10.0 10.0
Preferred Stock - B 0.0 0.0 0.0 0.0
Common - Sponsor 0.0 0.0 233.6 233.6
Management Rollover 0.0 0.0 0.0 0.0
Investor Rollover 0.0 0.0 0.0 0.0
Other 0.0 0.0 0.0 0.0
Additional Paid-In Capital 0.0 0.0 0.0
Retained Earnings 0.0 0.0 (15.8) (15.8)
Total Shareholders' Equity $82.5 $97.9 $227.8

Liabilities & S/H Equity $422.4 $440.9 $841.9

Check 0.000 0.000 0.000

Debt
($ in millions, except per share data)
2 Mos.
Ending
9/30/2008
LIBOR Curve 2.78%

Interest Rate Assumptions LIBOR +

Assumed Debt 2.50%
Revolver 4.25% 7.03%
Term Loan - A 4.79% 7.57%
Term Loan - B 6.00% 8.78%
Senior Note 6.50% 9.28%
Subordinated Note 10.25%
Mezzanine 10.50%
Seller Note 10.50%
Preferred Stock - A 14.00%
Preferred Stock - B 14.25%

Revolver Undrawn Commitment Fee 0.50%

Debt Amortization Schedule

Beginning Scheduled
Balance Amort. Prepay? Bullet Year Years PIK
 Assumed Debt 230.0 0.0% no 5 0 0.0%
Term Loan - A 150.0 20.0% yes 5 0 3.3%
Term Loan - B 0.0 5.0% yes 6 0 0.8%
Senior Note 75.0 0.0% no 4 0 0.0%
Subordinated Note 0.0 0.0% no 4 5 0.0%
Mezzanine 0.0 0.0% no 0 0 0.0%
Seller Note 0.0 0.0% yes 8 2 0.0%

Working Cap
($ in millions, except per share data)
Historical
LTM
3/31/2008
Sales $420.4
COGS 219.3
Assumptions
Non-Cash Current Asset Projections Method Metric
Accounts Receivable % of Sales 31.3% $131.4
Inventories % of COGS 0.0% 0.0
Deferred Income Taxes % of Sales 2.1% 8.8
Prepaid Expenses & Other % of COGS 3.7% 8.2
Non-Debt Current Liabilities Projections
Accounts Payable % of COGS 9.4% $20.7
Accrued Liabilities % of COGS 7.0% 15.4
Client Deposits % of Sales 0.0% 0.0
Other Current Liabilities % of COGS 27.0% 59.1

Net Working Capital $53.3

Change in Net Working Capital

Book Depre
($ in millions, except per share data)
2 Mos.
Ending
Existing Fixed Assets 9/30/2008
Beginning Remain. Salvage
Classification Amount Life Value
PP&E $175.4 14.0 $0.0 $2.1
Class 2 0.0 0.0 0.0 0.0
Class 3 0.0 0.0 0.0 0.0
Class 4 0.0 0.0 0.0 0.0
Subtotal $2.1
Capital Expenditures
Useful Salvage
Year CapEx Life Value
2008 $16.0 20.0 $0.0 $0.1
2009 14.1 20.0 0.0
2010 14.2 20.0 0.0
2011 14.3 20.0 0.0
 2012 14.5 20.0 0.0
2013 14.6 20.0 0.0
2014 14.8 20.0 0.0
2015 14.9 20.0 0.0
2016 15.0 20.0 0.0
2017 15.2 20.0 0.0
Subtotal $0.1

Manual or Computed Total Computed Depreciation Expense $2.2

Depreciation Analyst-Projected (Manual) Depreciation Expense 2.4
0=Manual, 1=Computed
0 Computed Book Depreciation Expense $2.4

Tax
($ in millions, except per share data)
2 Mos.
Ending
9/30/2008
Income Tax Rate 35.0%

Book
Book Taxable Income
+ Adjustments Intangibles Amortization 0.0
= Adjusted Book Taxable Income Book Tax $0.0
Income Tax Expense Period (yrs) 5.0 15.0 0.0
Expense $23.3 $0.0
Tax
Book Taxable Income Goodwill Amortization $0.0
+ Book Amortization of Intangibles Book Tax 3.9
+ Book Amortization of Goodwill Period (yrs) NA 15.0 0.0
+ Book Depreciation Expense $0.0 $0.0 0.3
+ Book (Gain) / Loss on Sale of Assets 0.0
+ Non-Deductible Expenses Fixed Asset Depreciation 0.0
- Tax Amortization of Intangibles Book Tax 0.0
- Tax Amortization of Goodwill Period (yrs) 8.0 6.0 0.0
- Tax Depreciation Expense $1.9 $0.0 0.0
- Tax (Gain) / Loss on Sale of Assets 0.0
= Pre-NOL Taxable Income $4.2

Operating
($ in millions, except per share data)

Revenue Growth
Management Case
Analyst Case
Downside Case
Analyst Case
COGS (% of Sales)
Management Case
Analyst Case
Downside Case
Analyst Case

SG&A (% of Sales)
Management Case
Analyst Case
Downside Case
Analyst Case

Other (% of Sales)
Management Case
Analyst Case
Downside Case
Analyst Case

Capital Struc
($ in millions, except per share data)

Financing Scenarios
Case 1 2 3 4 5

Description No deal Refi A Refi B LBO A LBO B

Sources of Funds
Excess Cash $0.0 $0.0 $0.0 $116.6 $116.6
Debt Assumed 0.0 230.0 230.0 230.0 230.0
Noncontrolling Interest Assumed 0.0 0.0 0.0 0.0 0.0
Revolver 0.0 0.0 0.0 0.0 0.0
Term Loan - A 0.0 (29.2) (74.0) 150.0 0.0
Term Loan - B 0.0 0.0 0.0 0.0 75.0
Senior Note 0.0 50.0 100.0 75.0 100.0
Subordinated Note 0.0 0.0 0.0 0.0 0.0
Mezzanine 0.0 0.0 0.0 0.0 0.0
Seller Note 0.0 0.0 0.0 0.0 0.0
Preferred Stock - A 0.0 0.0 0.0 10.0 75.0
Preferred Stock - B 0.0 0.0 0.0 0.0 0.0
Common - Sponsor 0.0 0.0 0.0 233.6 217.5
Management Rollover 0.0 0.0 0.0 0.0 0.0
Investor Rollover 0.0 0.0 0.0 0.0 0.0
Other 0.0 0.0 0.0 0.0 0.0
Total Sources $0.0 $250.8 $256.0 $815.2 $814.1

Uses of Funds
Existing Shareholders $0.0 $0.0 $0.0 $563.0 $563.0
Investor Rollover 0.0 0.0 0.0 0.0 0.0
 Fund Cash Balance 0.0 10.0 15.0 0.0 0.0
Assume Debt 0.0 230.0 230.0 230.0 230.0
Refinance Debt 0.0 0.0 0.0 0.0 0.0
Tender / Call Premium 0.0 0.0 0.0 0.0 0.0
Assume Noncontrolling Interest 0.0 0.0 0.0 0.0 0.0
Purchase Noncontrolling Interest 0.0 0.0 0.0 0.0 0.0
Expensed Transaction Costs 0.0 8.5 8.5 15.8 15.8
Capitalized Financing Costs 0.0 2.3 2.5 6.4 5.3
Other 0.0 0.0 0.0 0.0 0.0
Total Uses $0.0 $250.8 $256.0 $815.2 $814.1

LBO? no no no yes yes

Check 0.000 0.000 0.000 0.000 0.000

Transaction Fees &

($ in millions, except per share data)
Fees (%) Computation Metric
M&A / Sponsor Fees
Bank Fee 0.65% of Transaction Value (excl. Fees & Expenses):
Sponsor Fee 0.65% of Transaction Value (excl. Fees & Expenses):
Financing Fees
Revolver 1.75% of Total Facility Size (Commitment):
Term Loan - A 2.00% of Total Principal Amount:
Term Loan - B 1.75% of Total Principal Amount:
Senior Note 2.25% of Total Principal Amount:
Subordinated Note 3.00% of Total Principal Amount:
Mezzanine 0.00% of Total Principal Amount:
Seller Note 0.00% of Total Principal Amount:
Preferred Stock - A 0.00% of Total Principal Amount:
Preferred Stock - B 0.00% of Total Principal Amount:
Other Miscellaneous Fees
Legal
Accounting
Printing
Other
Target's Expenses

Amortization of Capitalized Financing Costs 2 Mos.

Amort. Annual Ending
Period Expense 9/30/2008
Revolver 5.0 $0.4 $0.1
Term Loan - A 5.0 0.6 0.1
Term Loan - B 6.0 0.0 0.0
Senior Note 4.0 0.4 0.1
Subordinated Note 4.0 0.0 0.0
Mezzanine 0.0 0.0 0.0
Seller Note 8.0 0.0 0.0
Total Annual Amortization $0.2
 Valuation Summary Purchase Price Allocation / Good

Years Current Target Stock Price $12.81 % of Excess PP Allocated to Intangibles

PIK Offer Premium 25.0% Intangibles Amortization Period (yrs)
Offer Price Per Target Share $16.01 Fixed Asset Write-Up
Fixed Asset Depreciation Period (yrs)
0 Fully Diluted Shares Outstanding (mm) 35.159
Equity Purchase Price $563.0 Tax Rate
Target Pro Forma Net Debt 83.4 Deal Structure (0=Stock Deal, 1=Asset Deal)
Pro Forma Enterprise Value $646.4
0 Recap Accounting?
0 Pro Forma Enterprise Value Multiples
0 Metric Multiple Equity Purchase Price
5 LTM Sales $420.4 1.54x Transaction Fees
0 FY 2008 PF Sales 458.1 1.41x Book Value of Net Assets
2 FY 2009 PF Sales 468.0 1.38x Excess Purchase Price to Allocate
Net Asset Step-Ups:
3 LTM EBITDA $120.6 5.4x Fixed Asset Write-Up
3 FY 2008 PF EBITDA 130.2 5.0x Indentifiable Intangibles Write-Up
FY 2009 PF EBITDA 156.5 4.1x Write Off Target's Existing Goodwill
ent Interest Rates Write Off Target's Existing DTL
Operating Performance Drivers DTL from Asset Write-Ups
2.78% Goodwill Created
4.50% Operating Case: Analyst Case 2
2.00% Model Detail
yes COGS Savings $10.0
SG&A Savings 20.0 Target Code Name
nance Target Debt Total Savings $30.0 Model Created / Modified by:

no Calendarization / Timing Last Modified:

File Name: 'file:///conversion/tmp/scratch/42469
um Cash / Revolver Last Fiscal Year End 9/30/2007
LTM End Date 3/31/2008
$30.0 Current Date 5/17/2008
$100.0 Expected Closing Date 7/31/2008
Months from Last FYE to LTM End 6
Scenario Months from Closing to Next FYE 2
Stub Allocation 16.7%
4

Income Statement

Projected Fiscal Years Ending September 30,

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
2008 2009 2010 2011 2012 2013 2014
 $458.1 $468.0 $470.5 $475.2 $480.0 $484.8 $489.6
13.8% 2.2% 0.5% 1.0% 1.0% 1.0% 1.0%
239.6 239.8 242.2 244.7 247.3 249.8 252.4
52.3% 51.2% 51.5% 51.5% 51.5% 51.5% 51.6%
88.3 71.7 72.4 73.3 74.3 75.2 76.2
19.3% 15.3% 15.4% 15.4% 15.5% 15.5% 15.6%
0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
$130.2 $156.5 $155.9 $157.2 $158.4 $159.7 $161.0
28.4% 33.4% 33.1% 33.1% 33.0% 32.9% 32.9%

Balance Sheet

Pro Forma Projected Fiscal Years Ending September 30,

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
2008 2009 2010 2011 2012 2013 2014

143.2 146.3 147.1 148.6 150.1 151.6 153.1

0.0 0.0 0.0 0.0 0.0 0.0 0.0
9.6 9.8 9.9 10.0 10.1 10.2 10.3
9.0 9.0 9.1 9.2 9.3 9.4 9.5
$161.8 $165.1 $166.1 $167.7 $169.4 $171.1 $172.8

22.6 22.6 22.8 23.1 23.3 23.5 23.8

16.8 16.8 17.0 17.2 17.3 17.5 17.7
0.0 0.0 0.0 0.0 0.0 0.0 0.0
64.6 64.7 65.3 66.0 66.7 67.4 68.1
$104.0 $104.1 $105.1 $106.2 $107.3 $108.4 $109.6
 Debt Schedule

Projected Fiscal Years Ending September 30,

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
2008 2009 2010 2011 2012 2013 2014
3.45% 4.03% 4.36% 4.65% 4.81% 4.95% 5.05%

2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50%

7.70% 8.28% 8.61% 8.90% 9.06% 9.20% 9.30%
8.24% 8.82% 9.15% 9.44% 9.60% 9.74% 9.84%
9.45% 10.03% 10.36% 10.65% 10.81% 10.95% 11.05%
9.95% 10.53% 10.86% 11.15% 11.31% 11.45% 11.55%
10.25% 10.25% 10.25% 10.25% 10.25% 10.25% 10.25%
10.50% 10.50% 10.50% 10.50% 10.50% 10.50% 10.50%
10.50% 10.50% 10.50% 10.50% 10.50% 10.50% 10.50%
14.00% 14.00% 14.00% 14.00% 14.00% 14.00% 14.00%
14.25% 14.25% 14.25% 14.25% 14.25% 14.25% 14.25%
 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 0.0%
3.3% 20.0% 20.0% 20.0% 20.0% 16.7% 0.0%
0.8% 5.0% 5.0% 5.0% 5.0% 5.0% 74.2%
0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0%
0.0% 0.0% 0.0% 0.0% 100.0% 0.0% 0.0%
0.0% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0%
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Working Capital Assumptions

Projected Fiscal Years Ending September 30,

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
2008 2009 2010 2011 2012 2013 2014
$458.1 $468.0 $470.5 $475.2 $480.0 $484.8 $489.6
239.6 239.8 242.2 244.7 247.3 249.8 252.4

$143.2 $146.3 $147.1 $148.6 $150.1 $151.6 $153.1

0.0 0.0 0.0 0.0 0.0 0.0 0.0
9.6 9.8 9.9 10.0 10.1 10.2 10.3
9.0 9.0 9.1 9.2 9.3 9.4 9.5

$22.6 $22.6 $22.8 $23.1 $23.3 $23.5 $23.8

16.8 16.8 17.0 17.2 17.3 17.5 17.7
0.0 0.0 0.0 0.0 0.0 0.0 0.0
64.6 64.7 65.3 66.0 66.7 67.4 68.1

$57.8 $61.1 $61.0 $61.5 $62.1 $62.7 $63.3

4.5 3.2 (0.1) 0.6 0.6 0.6 0.6

Book Depreciation Schedule

Projected Fiscal Years Ending September 30,

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
2008 2009 2010 2011 2012 2013 2014

Depreciation of Existing Fixed Assets

$12.5 $12.5 $12.5 $12.5 $12.5 $12.5 $12.5
0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0
$12.5 $12.5 $12.5 $12.5 $12.5 $12.5 $12.5

Depreciation of Capital Expenditures

$0.8 $0.8 $0.8 $0.8 $0.8 $0.8 $0.8
0.7 0.7 0.7 0.7 0.7 0.7
0.7 0.7 0.7 0.7 0.7
0.7 0.7 0.7 0.7
 0.7 0.7 0.7
0.7 0.7
0.7

$0.8 $1.5 $2.2 $2.9 $3.7 $4.4 $5.1

$13.3 $14.0 $14.7 $15.5 $16.2 $16.9 $17.6

14.1 14.1 14.1 14.2 14.4 14.5 14.7

$14.1 $14.1 $14.1 $14.2 $14.4 $14.5 $14.7

Tax Schedule

Projected Fiscal Years Ending September 30,

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
2008 2009 2010 2011 2012 2013 2014
35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0%

0.0 0.0 0.0 0.0 0.0 0.0 0.0

$0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0

$0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0

3.9 23.3 23.3 23.3 23.3 19.4 0.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.3 1.9 1.9 1.9 1.9 1.9 1.9
0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0
$4.2 $25.1 $25.1 $25.1 $25.1 $21.3 $1.9

Operating Assumptions

Projected Fiscal Years Ending September 30,

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
2008 2009 2010 2011 2012 2013 2014

14.0% 4.5% 3.6% 2.4% 2.4% 2.4% 2.4%

13.8% 2.2% 0.5% 1.0% 1.0% 1.0% 1.0%
11.0% 2.0% 0.5% 0.5% 0.5% 0.5% 0.5%
13.8% 2.2% 0.5% 1.0% 1.0% 1.0% 1.0%
 52.0% 51.5% 51.5% 51.0% 51.0% 51.0% 51.0%
52.3% 53.4% 53.6% 53.6% 53.6% 53.6% 53.6%
52.5% 53.9% 54.2% 54.5% 54.5% 54.5% 54.5%
52.3% 53.4% 53.6% 53.6% 53.6% 53.6% 53.6%

19.0% 19.0% 18.9% 18.8% 18.7% 18.7% 18.7%

19.3% 19.6% 19.6% 19.6% 19.6% 19.6% 19.6%
19.6% 20.0% 20.2% 20.4% 20.5% 20.5% 20.5%
19.3% 19.6% 19.6% 19.6% 19.6% 19.6% 19.6%

0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Capital Structure Assumptions

Active
Case
6 4

LBO C LBO A

$116.6 $116.6
230.0 230.0
0.0 0.0
0.0 0.0
50.0 150.0
0.0 0.0
100.0 75.0
50.0 0.0
0.0 0.0
0.0 0.0
0.0 10.0
0.0 0.0
248.7 233.6
20.0 0.0
0.0 0.0
0.0 0.0
$815.3 $815.2

$563.0 $563.0
0.0 0.0
 0.0 0.0
230.0 230.0
0.0 0.0
0.0 0.0
0.0 0.0
0.0 0.0
15.8 15.8
6.5 6.4
0.0 0.0
$815.3 $815.2

yes yes yes

0.000 0.000

Transaction Fees & Expenses Assumptions

tric Fees ($) Notes / Assumptions

Expensed as incurred (in current period) in accordance with FAS 141r

Expensed as incurred (in current period) in accordance with FAS 141r

$100.0 $1.8 Capitalized / amortized over life of financing

150.0 3.0 Capitalized / amortized over life of financing
0.0 0.0 Capitalized / amortized over life of financing
75.0 1.7 Capitalized / amortized over life of financing
0.0 0.0 Capitalized / amortized over life of financing
0.0 0.0 Capitalized / amortized over life of financing
0.0 0.0 Capitalized / amortized over life of financing
10.0 0.0 Reduction in Gross Proceeds. Reduction in APIC.
0.0 0.0 Reduction in Gross Proceeds. Reduction in APIC.

$3.0 Expensed as incurred (in current period) in accordance with FAS 141r
2.5 Expensed as incurred (in current period) in accordance with FAS 141r
1.0 Expensed as incurred (in current period) in accordance with FAS 141r
2.0 Expensed as incurred (in current period) in accordance with FAS 141r
0.0 Expensed as incurred (in current period) in accordance with FAS 141r

Projected Fiscal Years Ending September 30,

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
2008 2009 2010 2011 2012 2013 2014
$0.1 $0.4 $0.4 $0.4 $0.4 $0.3 $0.0
0.1 0.6 0.6 0.6 0.6 0.5 0.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.1 0.4 0.4 0.4 0.4 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0
$0.2 $1.4 $1.4 $1.4 $1.3 $0.8 $0.0
 Options
Number of Average Treasury
Purchase Price Allocation / Goodwill Options (m) Strike Shares
Tranche 1 0.209 $9.04 0.091
P Allocated to Intangibles 25.0% Tranche 2 0.059 10.03 0.022
ortization Period (yrs) 5.0 Tranche 3 0.221 11.53 0.062
$15.0 Tranche 4 0.300 12.69 0.062
preciation Period (yrs) 8.0 Tranche 5 0.269 19.54 0.000
Tranche 6 0.211 27.06 0.000
35.0% Tranche 7 0.187 45.75 0.000
(0=Stock Deal, 1=Asset Deal) 0 Tranche 8 0.000 0.00 0.000
Tranche 9 0.000 0.00 0.000
no Tranche 10 0.000 0.00 0.000

$563.0 Convertible Debt

0.0 Convert 1 Convert 2
(97.9) Face Value $230.0 $0.0
hase Price to Allocate $465.1 Conversion Price $26.77 NA
Convertible Shares 8.592 0.000
$15.0 Interest Rate 2.5% 0.0%
Intangibles Write-Up 116.3
get's Existing Goodwill (61.1) Fully Diluted Shares Outstanding
get's Existing DTL 0.0 Basic Shares Outstanding 34.922
set Write-Ups (45.9) ($24.2) Treasury Method Shares 0.237
$440.9 In-the-Money Convertible Shares 0.000
Fully Diluted Shares Outstanding 35.159
Model Detail
Net Debt
TargetCo Non-Convertible Debt $0.0
/ Modified by: Chris P. Chicken Convertible Debt 230.0
212-555-1212 Minority Interest 0.0
6/18/2019 2:29 PM Cash & Cash Equivalents (146.6)
ile:///conversion/tmp/scratch/424693922.xls'#$LBO Net Debt $83.4

LTM Inputs
6 Mos. 6 Mos.
ber 30, Ended Ended
Year 8 Year 9 Year 10 Mar-31 Mar-31
2015 2016 2017 2007 2008
 $494.5 $499.4 $504.4 $197.4 $215.3
1.0% 1.0% 1.0% NA 9.1%
255.1 257.7 260.4 100.8 112.4
51.6% 51.6% 51.6% 51.1% 52.2%
77.1 78.1 79.1 35.5 41.2
15.6% 15.6% 15.7% 18.0% 19.1%
0.0 0.0 0.0 0.0 0.0
0.0% 0.0% 0.0% 0.0% 0.0%
$162.3 $163.6 $165.0 $61.1 $61.7
32.8% 32.8% 32.7% 31.0% 28.7%

ber 30,
Year 8 Year 9 Year 10
2015 2016 2017

154.6 156.2 157.7

0.0 0.0 0.0
10.4 10.5 10.6
9.6 9.7 9.8
$174.6 $176.3 $178.1

24.0 24.3 24.5

17.9 18.1 18.3
0.0 0.0 0.0
68.8 69.5 70.2
$110.7 $111.8 $113.0
ber 30,
Year 8 Year 9 Year 10
2015 2016 2017
5.08% 5.15% 5.13%

2.50% 2.50% 2.50%

9.33% 9.40% 9.38%
9.87% 9.94% 9.92%
11.08% 11.15% 11.13%
11.58% 11.65% 11.63%
10.25% 10.25% 10.25%
10.50% 10.50% 10.50%
10.50% 10.50% 10.50%
14.00% 14.00% 14.00%
14.25% 14.25% 14.25%
 0.0% 0.0% 0.0%
0.0% 0.0% 0.0%
0.0% 0.0% 0.0%
0.0% 0.0% 0.0%
0.0% 0.0% 0.0%
0.0% 0.0% 0.0%
0.0% 100.0% 0.0%

ber 30,
Year 8 Year 9 Year 10
2015 2016 2017
$494.5 $499.4 $504.4
255.1 257.7 260.4

$154.6 $156.2 $157.7

0.0 0.0 0.0
10.4 10.5 10.6
9.6 9.7 9.8

$24.0 $24.3 $24.5

17.9 18.1 18.3
0.0 0.0 0.0
68.8 69.5 70.2

$63.9 $64.5 $65.1

0.6 0.6 0.6

ber 30,
Year 8 Year 9 Year 10
2015 2016 2017

$12.5 $12.5 $12.5

0.0 0.0 0.0
0.0 0.0 0.0
0.0 0.0 0.0
$12.5 $12.5 $12.5

$0.8 $0.8 $0.8

0.7 0.7 0.7
0.7 0.7 0.7
0.7 0.7 0.7
 0.7 0.7 0.7
0.7 0.7 0.7
0.7 0.7 0.7
0.7 0.7 0.7
0.8 0.8
0.8
$5.9 $6.6 $7.4

$18.4 $19.1 $19.9

14.8 15.0 15.1

$14.8 $15.0 $15.1

ber 30,
Year 8 Year 9 Year 10
2015 2016 2017
35.0% 35.0% 35.0%

0.0 0.0 0.0

$0.0 $0.0 $0.0
0.0 0.0 0.0

$0.0 $0.0 $0.0

0.0 0.0 0.0
0.0 0.0 0.0
1.9 1.6 0.0
0.0 0.0 0.0
0.0 0.0 0.0
0.0 0.0 0.0
0.0 0.0 0.0
0.0 0.0 0.0
0.0 0.0 0.0
$1.9 $1.6 $0.0

ber 30,
Year 8 Year 9 Year 10
2015 2016 2017

2.4% 2.4% 2.4%

1.0% 1.0% 1.0%
0.5% 0.5% 0.5%
1.0% 1.0% 1.0%
51.0% 51.0% 51.0%
53.6% 53.6% 53.6%
54.5% 54.5% 54.5%
53.6% 53.6% 53.6%

18.7% 18.7% 18.7%

19.6% 19.6% 19.6%
20.5% 20.5% 20.5%
19.6% 19.6% 19.6%

0.0% 0.0% 0.0%

0.0% 0.0% 0.0%
0.0% 0.0% 0.0%
0.0% 0.0% 0.0%
mptions

ber 30,
Year 8 Year 9 Year 10
2015 2016 2017
$0.0 $0.0 $0.0
0.0 0.0 0.0
0.0 0.0 0.0
0.0 0.0 0.0
0.0 0.0 0.0
0.0 0.0 0.0
0.0 0.0 0.0
$0.0 $0.0 $0.0
TargetCo Income Statement
($ in millions, except per share data)

FY Ended September 30, FY Ending Septem

2005A 2006A 2007A 2008P 2009P
Total Revenue $370.8 $380.8 $402.5 $458.1 $468.0
% Growth NA 2.7% 5.7% 13.8% 2.2%
COGS 182.5 188.6 207.7 239.6 249.8
% of Sales 49.2% 49.5% 51.6% 52.3% 53.4%
Gross Profit $188.3 $192.2 $194.8 $218.5 $218.2
% Margin 50.8% 50.5% 48.4% 47.7% 46.6%
SG&A 46.6 61.9 74.8 88.3 91.7
% of Sales 12.6% 16.3% 18.6% 19.3% 19.6%

EBITDA $141.7 $130.3 $120.0 $130.2 $126.5

% Margin 38.2% 34.2% 29.8% 28.4% 27.0%
Depreciation 14.0 11.1 12.1 14.1 14.1
% of Sales 3.8% 2.9% 3.0% 3.1% 3.0%
Amortization 25.7 18.2 18.6 19.6 19.9
% of Sales 6.9% 4.8% 4.6% 4.3% 4.3%
Total D&A $39.7 $29.3 $30.7 $33.7 $34.0
% of Sales 10.7% 7.7% 7.6% 7.4% 7.3%
Stock-Based Comp 16.5 13.4 11.3 10.8 10.6
% of Sales 4.4% 3.5% 2.8% 2.4% 2.3%
EBIT $85.5 $87.6 $78.0 $85.7 $81.9
% Margin 23.1% 23.0% 19.4% 18.7% 17.5%
EBITA $127.7 $119.2 $107.9 $116.1 $112.4
% Margin 34.4% 31.3% 26.8% 25.3% 24.0%

Interest (Income) / Expense 4.9 0.9 - (2.4) -

Equity (Income) - - - - -
Minority Interest - - - - -
Other (Income) / Expense 0.1 - - (0.1) -
Income Before Taxes $122.7 $118.3 $107.9 $118.6 $112.4
Provision for Tax 42.9 41.4 37.8 41.5 39.3
% Tax Rate 35.0% 35.0% 35.0% 35.0% 35.0%
Cash Net Income $79.8 $76.9 $70.1 $77.1 $73.1
% Margin 21.5% 20.2% 17.4% 16.8% 15.6%
Cash Diluted EPS $2.27 $2.27 $1.97 $2.14 $2.00
Diluted Shares Out 35.064 33.880 35.580 36.080 36.580

Cash to GAAP Reconciliation:

Amortization $16.7 $11.8 $12.1 $12.7 $12.9
Stock-Based Comp 10.7 8.7 7.3 7.0 6.9
One-Time Charges 8.2 3.4 0.7 0.1 -
GAAP Net Income $44.1 $53.0 $50.0 $57.2 $53.2
% Margin 11.9% 13.9% 12.4% 12.5% 11.4%
GAAP Diluted EPS $1.26 $1.56 $1.41 $1.59 $1.46

Capex $26.0 $12.5 $18.0 $16.0 $14.1

% of Sales 7.0% 3.3% 4.5% 3.5% 3.0%
FY Ending September 30, CAGR
2010P 2011E 2012E 2008-2012
$470.5 $475.2 $480.0 1.2%
0.5% 1.0% 1.0%
252.2 254.7 257.3
53.6% 53.6% 53.6%
$218.3 $220.5 $222.7 0.5%
46.4% 46.4% 46.4%
92.4 93.3 94.3
19.6% 19.6% 19.6%

$125.9 $127.2 $128.4 (0.3%)

26.8% 26.8% 26.8%
14.1 14.2 14.4
3.0% 3.0% 3.0%
20.0 20.0 20.0
4.3% 4.2% 4.2%
$34.1 $34.2 $34.4
7.2% 7.2% 7.2%
10.7 10.8 10.9
2.3% 2.3% 2.3%
$81.1 $82.1 $83.1 (0.8%)
17.2% 17.3% 17.3%
$111.8 $112.9 $114.0 (0.4%)
23.8% 23.8% 23.8%

- - -
- - -
- - -
- - -
$111.8 $112.9 $114.0 (1.0%)
39.1 39.5 39.9
35.0% 35.0% 35.0%
$72.7 $73.4 $74.1 (1.0%)
15.4% 15.4% 15.4%
$1.99 $2.01 $2.03 (1.3%)
36.580 36.580 36.580

$13.0 $13.0 $13.0

7.0 7.0 7.1
- - -
 $52.7 $53.4 $54.0 (1.4%)
11.2% 11.2% 11.3%
$1.44 $1.46 $1.48 (1.8%)

$14.2 $14.3 $14.5

3.0% 3.0% 3.0%