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DIT Appendix

1.
2.
3.
4.
5.
6.
7.

Investment Summary
Additional Company Information
Reformulated Balance Sheet
Adjusted Income Statement
Free Cash Flow
DCF Valuation
IRR Valuation

DIT - Appendix

Investment Summary
Company Name:
Ticker:
Recommendation:

($ in thousands, except per share data)


Amcon Distributing
DIT
LONG

Market Data
Stock Price
Diluted Shares Outstanding
Market Capitalization
Net Debt
Enterprise Value

Equity Valuation
Base Case Valuation
% probability
Downside Valuation
% probability
Adjusted Equity Value
Margin of Safety
Base Case Return Projections
3 YR IRR %
4 YR IRR %
5 YR IRR %

$77.05
762.793
$58,773
$23,039
$81,812

$132.61
80.0%
$81.71
20.0%
$122.43
37.1%

23.4%
21.6%
20.8%

Balance Sheet as of:


Assets
Cash & Equivalents
Current Assets
PP&E
Goodwill & Intangibles
Other
Total

$356.7
67,829.1
11,855.7
10,956.8
1,069.1
$92,067.4

Liabilities & Shareholders' Equity


Current Liabilities
Other
Non-Convertible Debt, incl. ST
Convertible Preferred Stock
Shareholders' Equity
Total

$28,192.6
$1,663.3
24,936.6
4,500.0
32,774.8
$92,067.4

31-De c-10

Financial Data
Sales
EBITDA
EBIT
EPS
FCF per share

FYE

C AGR

CAGR

30-S e p-10

('06-'10)

('10-'15)

4.7%
18.9%
23.4%
63.9%
43.2%

4.3%
9.7%
10.2%
11.5%
9.3%

$1,010,538
$17,263
$15,526
$11.53
$12.76
FYE

Ave .

Ave.

Margins
Gross Margin %
EBIT Margin %
Net Margin %
Dividend Payout %

30-S e p-10

('06-'10)

('11-'15)

FYE

Projected

Projected

Multiples & Ratios


EV/Sales
EV/EBITDA
EV/EBIT
P/E
FCF Yield %

30-S e p-10

30-Sep-11

30-Sep-12

0.1x
4.7x
5.3x
6.8x
16.2%

0.1x
4.3x
4.7x
5.9x
17.7%

0.1x
3.8x
4.2x
5.1x
19.6%

Debt/Total Cap.
Debt/EBITDA
EBIT/Interest

30.5%
1.4x
10.3x

29.4%
1.3x
16.4x

28.7%
1.1x
19.8x

Pre-Tax ROIC
ROE

33.4%
26.3%

34.6%
23.8%

37.0%
22.1%

DIT - Appendix

7.1%
1.5%
0.9%
5.0%

7.4%
1.3%
0.6%
1.9%

7.2%
1.8%
1.1%
3.6%

Additional Company Information


The Amcon Story
Amcon boasts a turnaround story with its current CEO, Chris Atayan, at its center. In 2006, with Amcon on the verge
of bankruptcy, Draupnir, LLC, a Chicago-based private equity firm, structured a $7.5MM capital infusion in exchange for 3 tranches
of convertible preferred stock. Chris Atayan, Senior Managing Director of Slusser Associates, was chosen as Draupnirs executive
representation to lead the companys turnaround. Since Atayan took the helm, Amcon has divested its unprofitable water business
and streamlined operations. Despite the severe economic conditions during this period, core EPS grew from $1.60 in FY 2006 to
$11.53 in FY 2010. In the same period Debt/EBITDA was reduced from 6.5x to 1.4x and pre-tax ROIC increased from 13.9% to
33.4%. In 2009, Atayan invested $4.5MM to buy out the former chairman and an additional $2MM to acquire Draupnirs preferred
stock interest. Atayan currently controls 34% of Amcons fully diluted shares.
Company Overview
Headquartered in Omaha, NE, Amcon Distributing is the 9th largest convenience store wholesale distributer in the
United States with approximately $1 billion in annual sales. Amcons wholesale operations serve approximately 4,300 retail outlets in
the Central, Rocky and Southern regions of the U.S. In addition, the company owns and operates 14 organic health food stores, 6
located in and around Orlando, FL and the remaining 8 located in various parts of the Midwest. Wholesale operations account for
96% of Amcons annual sales with the remainder coming from the Retail Health Food segment. Within the wholesale segment, 72%
of sales are derived from cigarettes, 6.5% from confectionary items, and 17.4% from other tobacco products (such as smokeless tobacco
and cigars), non-alcoholic beverages, food service, and other products.
Industry/Macro Overview
Rising food prices and fuel costs coupled with steadily declining cigarette consumption is forcing the convenience store
distribution industry to consolidate. As suppliers and manufacturers increase prices to compensate for these macro-trends, smaller
distributors who lack bargaining power are becoming less and less competitive. Amcon is large enough to capitalize on this trend going
forward and, down the road, should be a takeover target by a larger company. In addition, Amcon is one of the only publically traded
companies in the industry. Other major competitors in the industry that should benefit from industry consolidation are Core-Mark
(NYSE: CORE) which has $6.5 billion in sales and trades at 6x EBITDA as well as the McLane Company which is private and owned
by Berkshire Hathaway.

DIT - Appendix

Invested Capital - Sources and Uses


Operating Cash

FYE

FYE

FYE

FYE

FYE

Projected

Projected

Projected

Projected

Projected

30-Sep-06

30-Sep-07

30-Sep-08

30-Sep-09

30-Sep-10

30-Sep-11

30-Sep-12

30-Sep-13

30-Sep-14

30-Sep-15

481.1

717.6

457.7

309.9

356.7

425.0

443.2

461.2

479.5

498.3

Receivables

27,815.8

27,848.9

27,198.4

28,393.2

27,903.7

29,690.1

30,965.4

32,224.2

33,499.4

34,811.5

Inventories

42,756.8

29,407.2

29,738.7

37,331.0

34,486.0

35,006.0

36,505.7

38,053.2

39,578.9

41,145.1

Prepaid and Other Current Assets

5,369.2

5,935.2

3,519.7

1,728.6

3,013.5

2,443.6

2,548.6

2,652.2

2,757.1

2,865.1

Operating Current Assets - Total

63,073.2

64,240.4

68,506.7

64,917.7

66,279.9

69,064.4

72,010.4

74,916.5

77,881.1

80,931.7

Accounts Payable

14,633.1

15,253.6

14,738.2

15,222.7

16,656.3

16,655.7

17,361.4

18,056.1

18,770.3

19,505.2

Accrued Expenses

4,687.8

5,293.9

5,275.7

6,768.9

6,007.9

6,693.4

6,980.9

7,264.7

7,552.1

7,848.0

Accrued Wages, Salaries and Bonuses

1,879.7

2,202.6

2,636.7

3,257.8

3,161.8

3,399.8

3,545.8

3,690.0

3,836.0

3,986.3

168.9

367.8

313.0

3,984.3

2,366.7

3,187.3

3,324.2

3,459.4

3,596.3

3,737.1

21,369.5

23,117.9

22,963.6

29,233.7

28,192.6

29,936.1

31,212.4

32,470.1

33,754.7

35,076.6

41,703.7

41,122.6

45,543.1

35,684.0

38,087.2

39,128.3

40,798.0

42,446.4

44,126.4

45,855.1

4,420.5

(9,859.1)

2,403.2

1,041.0

1,669.8

1,648.4

1,680.0

1,728.7
14,823.9

Taxes Payable
Operating Current Liabilities - Total
Net Working Capital
Increase (Decrease) in NWC
Plant, Property & Equip (Net)

(581.1)
12,528.5

11,190.8

10,907.5

11,256.6

11,855.7

12,218.1

12,853.7

13,491.5

14,145.3

1,247.5

1,093.2

1,123.3

1,026.4

481.6

743.7

775.7

807.2

839.1

872.0

Net Fixed Assets

13,776.0

12,283.9

12,030.8

12,283.0

12,337.2

12,961.8

13,629.3

14,298.7

14,984.4

15,695.9

TANGIBLE INVESTED CAPITAL

55,479.7

53,406.5

57,573.9

47,967.0

50,424.5

52,090.0

54,427.3

56,745.1

59,110.8

61,551.1

Goodwill

5,848.8

5,848.8

5,848.8

5,848.8

6,149.2

6,149.2

6,149.2

6,149.2

6,149.2

6,149.2

Indefinite Life Intangibles

3,439.8

3,400.1

3,373.3

3,373.3

3,373.3

3,373.3

3,373.3

3,373.3

3,373.3

3,373.3

Definite Life Intangibles

0.0

0.0

0.0

0.0

1,434.4

1,231.9

1,029.4

826.9

624.4

421.9

Cum. Amortization and Writedowns of Intangibles

0.0

0.0

0.0

0.0

185.6

388.1

590.6

793.1

995.6

1,198.1

64,768.3

62,655.4

66,796.0

57,189.1

61,566.9

63,232.5

65,569.8

67,887.5

70,253.3

72,693.5

0.0

0.0

0.0

0.0

0.0
31,860.2

Net Long Term Operating Assets (Liabilities)

TOTAL INVESTED CAPITAL


NOL's
Disc. Operations Assets (Net of Liabilities)

(7,504.5)

(8,502.2)

(8,533.2)

0.0

0.0

(7,504.5)

(8,502.2)

(8,533.2)

0.0

0.0

Other
Non-Operating Assets (Net of Liabilities)
Beg. Excess Cash
Plus: Net Cash Flow
End. Excess Cash
TOTAL FUNDS INVESTED - USES
Revolving Credit Facility
Long Term Debt
Debt and Debt Equivalents - Total
Deferred Tax Liabilities (Assets)

0.0

7,316.3

15,553.3

20,888.9

7,316.3

8,237.0

5,335.6

10,971.3

12,187.9

7,316.3

15,553.3

20,888.9

31,860.2

44,048.1

57,263.8

54,153.1

58,262.8

57,189.1

61,566.9

70,548.7

81,123.1

88,776.4

102,113.5

116,741.6

48,823.4

38,854.2

35,201.0

22,833.7

18,816.7

18,816.7

18,816.7

18,816.7

18,816.7

18,816.7

7,593.5

7,691.5

7,313.0

6,536.6

6,119.9

5,226.6

4,667.4

0.0

0.0

0.0

56,416.9

46,545.7

42,514.0

29,370.4

24,936.6

24,043.3

23,484.1

18,816.7

18,816.7

18,816.7

(830.1)

(415.1)

(207.5)

(103.8)

(51.9)

0.0

0.0

0.0

0.0

185.6

388.1

590.6

793.1

995.6

1,198.1

Preferred Stock - Convertible Series A

2,438.4

2,438.4

2,438.4

2,500.0

2,500.0

2,500.0

2,500.0

2,500.0

2,500.0

2,500.0

Preferred Stock - Convertible Series B

1,857.6

1,857.6

1,857.6

2,000.0

2,000.0

2,000.0

2,000.0

2,000.0

2,000.0

2,000.0

Preferred Stock - Convertible Series C

1,982.4

1,982.4

1,982.4

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Shareholder's Equity

1,404.2

5,543.5

10,965.2

23,763.6

32,774.8

42,032.4

52,755.9

64,770.4

77,853.0

92,252.7

Cum. Amortization and Writedowns of Intangibles

(6,835.7)

(4,214.4)

(1,494.8)

(444.9)

(25.9)

Less: Treasury Stock


Equity and Equity Equivalents - Total
TOTAL FUNDS INVESTED - SOURCES

846.9

7,607.5

15,748.8

27,818.8

36,630.3

46,505.4

57,639.0

69,959.7

83,296.8

97,924.9

57,263.8

54,153.1

58,262.8

57,189.1

61,566.9

70,548.7

81,123.1

88,776.4

102,113.5

116,741.6

DIT - Appendix

FYE

FYE

FYE

FYE

FYE

Projected

Projected

Projected

Projected

Projected

Adjusted Income Statement

30-Sep-06

30-Sep-07

30-Sep-08

30-Sep-09

30-Sep-10

30-Sep-11

30-Sep-12

30-Sep-13

30-Sep-14

30-Sep-15

Sales (Net)

839,539.8

853,566.5

860,451.1

907,953.0

1,010,538.0

1,062,439.7

1,108,074.2

1,153,120.2

1,198,752.0

1,245,707.2

COGS

779,189.4

789,317.8

795,774.8

839,813.2

938,830.2

987,006.4

1,028,846.9

1,070,095.5

1,112,441.8

1,156,016.2

Gross Profit

60,350.4

64,248.7

64,676.3

68,139.8

71,707.8

75,433.2

79,227.3

83,024.7

86,310.1

89,690.9

7.19%

7.53%

7.52%

7.50%

7.10%

7.10%

7.15%

7.20%

7.20%

7.20%

51,721.5

50,963.6

51,631.3

51,539.8

54,445.2

56,309.3

57,730.7

59,385.7

61,136.4

62,285.4
27,405.6

% margin
SG&A
+/- Non-Recurring Items
Adj. EBITDA

8,628.9

13,285.1

13,045.0

16,600.0

17,262.6

19,123.9

21,496.6

23,639.0

25,173.8

% margin

1.03%

1.56%

1.52%

1.83%

1.71%

1.80%

1.94%

2.05%

2.10%

2.20%

Depreciation & Amortization

1,936.9

1,831.6

1,386.2

1,216.1

1,736.8

1,624.2

1,673.9

1,761.0

1,848.3

1,937.9

202.5

202.5

202.5

202.5

202.5

6,692.0

11,453.4

11,658.8

15,383.9

15,525.8

17,297.2

19,620.3

21,675.5

23,123.0

25,265.2
2.03%

Non-Deductible Intangible Amortization


Adj. EBIT
% margin

0.80%

1.34%

1.35%

1.69%

1.54%

1.63%

1.77%

1.88%

1.93%

Interest Expense

4,858.0

4,816.3

2,986.2

1,627.4

1,504.9

1,054.5

993.1

948.6

658.6

658.6

Pre-Tax Income

1,834.0

6,637.1

8,672.5

13,756.6

14,020.9

16,242.7

18,627.1

20,726.9

22,464.4

24,606.6

% margin

0.22%

0.78%

1.01%

1.52%

1.39%

1.53%

1.68%

1.80%

1.87%

1.98%

Marginal Tax Rate

38.2%

35.7%

36.7%

38.0%

38.5%

38.5%

38.5%

38.5%

38.5%

38.5%

700.9

2,366.8

3,182.8

5,233.0

5,400.8

6,256.7

7,175.2

7,984.0

8,653.3

9,478.5

1,133.0

4,270.3

5,489.7

8,523.6

8,620.0

9,986.0

11,452.0

12,742.9

13,811.1

15,128.1

0.13%

0.50%

0.64%

0.94%

0.85%

0.94%

1.03%

1.11%

1.15%

1.21%

366.0

418.7

419.8

568.7

297.0

297.0

297.0

297.0

297.0

297.0

Net Income Available for Common

767.0

3,851.6

5,069.9

7,954.9

8,323.0

9,689.0

11,154.9

12,445.9

13,514.1

14,831.1

% margin

0.09%

0.45%

0.59%

0.88%

0.82%

0.91%

1.01%

1.08%

1.13%

1.19%

0.0

0.0

91.0

228.2

416.8

431.4

431.4

431.4

431.4

431.4

0.00%

0.00%

1.79%

2.87%

5.01%

4.45%

3.87%

3.47%

3.19%

2.91%

Retained Earnings

767.0

3,851.6

4,978.9

7,726.7

7,906.2

9,257.6

10,723.5

12,014.4

13,082.7

14,399.7

Basic Earnings Per Share

$1.46

$7.31

$9.45

$14.50

$14.75

$16.17

$18.62

$20.77

$22.55

$24.75

Diluted Earnings Per Share

$1.60

$4.96

$6.45

$10.91

$11.53

$13.09

$15.01

$16.71

$18.11

$19.83

Common Dividends Per Share

$0.00

$0.00

$0.16

$0.40

$0.72

$0.72

$0.72

$0.72

$0.72

$0.72

Basic Ave. Shares Outstanding

527.1

527.1

536.3

548.6

564.4

599.2

599.2

599.2

599.2

599.2

Diluted Ave. Shares Outstanding

708.9

860.1

851.3

781.3

747.9

762.8

762.8

762.8

762.8

762.8

0.0

0.0

570.4

573.2

577.4

599.2

599.2

599.2

599.2

599.2

Income Taxes
Adj. Net Income (Loss)
% margin
Preferred Dividends Paid

Common Dividends Paid


% payout

Shares Outstanding at Fiscal Year End

Cash Earnings
Adj. EBITDA
Less: Maintenance CapEx

FYE

FYE

FYE

FYE

FYE

Projected

Projected

Projected

Projected

Projected

30-Sep-06

30-Sep-07

30-Sep-08

30-Sep-09

30-Sep-10

30-Sep-11

30-Sep-12

30-Sep-13

30-Sep-14

30-Sep-15

8,628.9

13,285.1

13,045.0

16,600.0

17,262.6

19,123.9

21,496.6

23,639.0

25,173.8

27,405.6

(920.7)

(346.0)

(762.5)

(1,103.4)

(812.6)

(1,389.7)

(1,780.1)

(1,871.8)

(1,963.6)

(2,057.8)

Less: NWC Inflation


EBITDA - MCX
% margin

7,708.2

12,939.1

12,282.4

15,496.6

16,450.0

17,734.2

19,716.5

21,767.2

23,210.1

0.92%

1.52%

1.43%

1.71%

1.63%

1.67%

1.78%

1.89%

1.94%

DIT - Appendix

25,347.8
2.03%

FYE

FYE

FYE

FYE

FYE

Projected

Projected

Projected

Projected

Projected

30-Sep-06

30-Sep-07

30-Sep-08

30-Sep-09

30-Sep-10

30-Sep-11

30-Sep-12

30-Sep-13

30-Sep-14

30-Sep-15

Adj. Net Income (Loss)

1,133.0

4,270.3

5,489.7

8,523.6

8,620.0

9,986.0

11,452.0

12,742.9

13,811.1

15,128.1

Plus: Depreciation

1,936.9

1,831.6

1,386.2

1,216.1

1,736.8

1,624.2

1,673.9

1,761.0

1,848.3

1,937.9

Plus: Amortization

0.0

0.0

0.0

0.0

0.0

202.5

202.5

202.5

202.5

202.5

3,069.9

6,101.9

6,875.9

9,739.7

10,356.9

11,812.7

13,328.3

14,706.3

15,861.9

17,268.5

(920.7)

(346.0)

(762.5)

(1,103.4)

(812.6)

(1,389.7)

(1,780.1)

(1,871.8)

(1,963.6)

(2,057.8)

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

2,149.3

5,756.0

6,113.4

8,636.2

9,544.2

10,423.0

11,548.2

12,834.6

13,898.3

15,210.7

0.26%

0.67%

0.71%

0.95%

0.94%

0.98%

1.04%

1.11%

1.16%

1.22%

(59.9)

(168.3)

(82.6)

(570.0)

(1,231.0)

(596.9)

(529.4)

(527.0)

(538.5)

(558.8)

0.0

581.1

(4,420.5)

9,859.1

(2,403.2)

(1,041.0)

(1,669.8)

(1,648.4)

(1,680.0)

(1,728.7)

(15.0)

0.0

0.0

0.0

(3,099.8)

0.0

154.3

(30.1)

96.9

544.8

(262.1)

(31.9)

(31.5)

(31.9)

(32.9)

Decrease (Increase) Non-Operating Assets

7,504.5

997.8

30.9

(8,533.2)

0.0

0.0

0.0

0.0

0.0

0.0

Cash Flow for Debt & Preferred

9,578.9

7,320.9

1,611.1

9,489.0

3,355.0

8,523.0

9,317.1

10,627.6

11,647.8

12,890.4

Increase (Decrease) Credit Facility

0.0

(9,969.3)

(3,653.2)

(12,367.3)

(4,017.0)

0.0

0.0

0.0

0.0

0.0

Increase (Decrease) LT Debt

0.0

98.0

(378.5)

(776.4)

(416.8)

(893.3)

(559.2)

(4,667.4)

0.0

0.0

Issuance (Redemption) of Preferred Securities

0.0

0.0

0.0

(1,778.4)

0.0

0.0

0.0

0.0

0.0

0.0

(366.0)

(418.7)

(419.8)

(568.7)

(297.0)

(297.0)

(297.0)

(297.0)

(297.0)

(297.0)

Cash Flow for Common

9,212.8

(2,969.1)

(2,840.4)

(6,001.7)

(1,375.8)

7,332.6

8,460.9

5,663.2

11,350.8

12,593.4

Increase (Decrease) Deferred Tax Liabilities

(6,835.7)

2,621.3

2,719.7

1,049.9

(385.3)

415.1

207.5

103.8

51.9

25.9

0.0

0.0

(91.0)

(228.2)

(416.8)

(431.4)

(431.4)

(431.4)

(431.4)

(431.4)

2,377.2

(347.8)

(211.7)

(5,180.0)

(2,177.8)

7,316.3

8,237.0

5,335.6

10,971.3

12,187.9

Excess Cash - Beg. Balance

0.0

2,377.2

2,029.3

1,817.6

(3,362.4)

(5,540.2)

1,776.1

10,013.1

15,348.7

26,320.0

Excess Cash - End. Balance


Basic FCF per Share
Diluted FCF per Share

2,377.2
$4.08
$3.03

2,029.3
$10.92
$6.69

1,817.6
$11.40
$7.18

(3,362.4)
$15.74
$11.05

(5,540.2)
$16.91
$12.76

1,776.1
$17.40
$13.66

10,013.1
$19.27
$15.14

15,348.7
$21.42
$16.83

26,320.0
$23.20
$18.22

38,507.9
$25.39
$19.94

Free Cash Flow

Gross Cash Flow


Less: Maintenance CapEx
Less: NWC Inflation
Free Cash Flow - Core Operations
% margin
Less: Growth CapEx
Decrease (Increase) in NWC
Less: Acquisitions
Less: Decrease (Increase) Net LT Assets
Plus: Asset Sales

Less: Preferred Dividends

Less: Common Dividends


Less: Treasury Stock Purchase
Net Cash Flow

DIT - Appendix

FYE
30-Sep-10
15,525.8
38.5%
(5,980.5)
9,545.3
1,736.8
0.0
(812.6)
(1,231.0)
(2,403.2)

Enterprise DCF
EBIT
Marginal Tax Rate
Less: Income Taxes
NOPAT
Add back: Depreciation
Add back: Amortization
Less: Maintenance CapEx
Less: Growth CapEx
Decrease (Increase) in NWC
Enterprise Free Cash Flow
% growth
Period
Discounted Cash Flow

EBITDA Multiple Valuation


Discount Rate
Exit Multiple
Ent. Terminal Value
PV of Cash Flows
PV of Terminal Value
Less: Net Debt
Equity Value
Diluted Shares
Value per share

12.0%
5.0x
137,027.8
46,442.6
77,753.2
(23,038.9)
101,157.0
762.8

Projected
30-Sep-11
17,297.2
38.5%
(6,662.9)
10,634.3
1,624.2
202.5
(1,389.7)
(596.9)
(1,041.0)

Projected
30-Sep-12
19,620.3
38.5%
(7,557.7)
12,062.5
1,673.9
202.5
(1,780.1)
(529.4)
(1,669.8)

Projected
30-Sep-13
21,675.5
38.5%
(8,349.4)
13,326.1
1,761.0
202.5
(1,871.8)
(527.0)
(1,648.4)

Projected
30-Sep-14
23,123.0
38.5%
(8,907.0)
14,216.0
1,848.3
202.5
(1,963.6)
(538.5)
(1,680.0)

Projected
30-Sep-15
25,265.2
38.5%
(9,732.1)
15,533.0
1,937.9
202.5
(2,057.8)
(558.8)
(1,728.7)

6,835.2

9,433.4
38.0%

9,959.7
5.6%

11,242.4
12.9%

12,084.7
7.5%

13,328.2
10.3%

0.0

1.0

2.0

3.0

4.0

5.0

6,835.2

8,422.7

7,939.8

8,002.1

7,680.0

7,562.8

Discount
Rate
(WACC)

132.61

4.0x

11.0%
11.5%
12.0%
12.5%
13.0%

$117.36
$114.76
$112.23
$109.76
$107.34

0.02

Discount
Rate
(WACC)

11.0%
11.5%
12.0%
12.5%
13.0%

Equity Value Per Share


EBITDA Multiple
4.5x
5.0x
5.5x

$149.35
$146.04
$142.81
$139.66
$136.59

$160.01
$156.46
$153.00
$149.63
$146.34

Implied Perpetuity Growth Rate


EBITDA Multiple
4.0x
4.5x
5.0x
5.5x

6.0x

-1.0%
-0.6%
-0.1%
0.3%
0.8%

$128.03
$125.19
$122.42
$119.72
$117.09

0.2%
0.6%
1.1%
1.5%
2.0%

$138.69
$135.61
$132.62
$129.69
$126.84

6.0x

1.2%
1.6%
2.1%
2.5%
3.0%

2.0%
2.4%
2.9%
3.4%
3.8%

2.7%
3.1%
3.6%
4.1%
4.5%

Implied Terminal Rates & Multiples


Perpetuity Growth Rate
2.1%
EBITDA-MCX Multiple
5.41x
EBIT Multiple
5.42x
FCF Yield %
15.0%
PE Multiple
6.69x

$132.61

DIT - Appendix

FYE
30-Sep-10
21.57
5.0x
$107.83
(32.69)

Free Cash Flow (IRR)


EBITDA-MCX Per Share
Exit Multiple
Enterprise Value Per Share
Less: Debt
Equity Value Per Share
Excess Cash Per Share
% cash discount
Adjusted Cash Per Share
Period
Equity Cash Flows
Initial Investment
Dividends Per Share
Residual at Exit
Net Cash Flows to Equity
Investment Holding Period
IRR %
EBITDA Per Share
Implied EBITDA Multiple
FCF Per Share
Implied FCF Yield %
Earnings Per Share
Implied PE Multiple
Fully Diluted Shares Outstanding

Projected
30-Sep-11
23.25
5.0x
$116.24
(31.52)

Projected
30-Sep-12
25.85
5.0x
$129.24
(30.79)

Projected
30-Sep-13
28.54
5.0x
$142.68
(24.67)

Projected
30-Sep-14
30.43
5.0x
$152.14
(24.67)

Projected
30-Sep-15
33.23
5.0x
$166.15
(24.67)

CAGR
('10-'15)
9.0%

13.5%

$75.14
$0.00

$84.72
$9.59

$98.45
$20.39

$118.01
$27.38

$127.47
$41.77

$141.48
$57.75

(10.00%)

(10.00%)

(10.00%)

(10.00%)

(10.00%)

(10.00%)

$0.00

$8.63

$18.35

$24.65

$37.59

$51.97

0.0

1.0

2.0

3.0

4.0

5.0

$0.57
$93.36
$0.57

$0.57
$116.80
$0.57

$0.57
$142.66
$143.22

$0.57
$165.06
$0.00

$0.57
$193.45
$0.00

23%

Holding
Period
(Years)

1.0
2.0
3.0
4.0
5.0

Investor IRR
EBITDA-MCX Exit Multiple
4.0x
4.5x
5.0x
5.5x

(8.22%)
9.39%
14.66%
15.60%
16.34%

6.88%
16.83%
19.21%
18.69%
18.63%

21.98%
23.83%
23.43%
21.57%
20.76%

37.08%
30.45%
27.38%
24.25%
22.74%

52.17%
36.75%
31.09%
26.77%
24.60%

($77.05)

($77.05)

3.0
23.4%

22.63
4.76x
12.51

25.07
4.64x
13.66

28.18
4.59x
15.14

30.99
4.60x
16.83

33.00
4.61x
18.22

35.93
4.62x
19.94

16.7%

16.1%

15.4%

14.3%

14.3%

14.1%

11.30
6.65x
762.8

13.09
6.47x

15.01
6.56x

16.71
7.06x

18.11
7.04x

19.83
7.13x

DIT - Appendix

6.0x

9.7%
9.8%
11.9%