Kinetic Concepts, Inc. - Basic LBO Model ($ in Millions, Except Per Share Amounts in Dollars as Stated) Input & Assumptions Company Name: !"a#e $#ice:
Kinetic Concepts, Inc. $ !#.#
!" %es % es
Tax ate: Allo% Ci#cula# ee#ences' (iluted !"a#es Calculations:
Basic !"a#es Outstandin): Basic *+uity alue: (iluted !"a#es Outstandin): (iluted *+uity alue: 0ess+ Cash 1 Short23erm In4estments+ In4estm ents+ Plus+ De7t+ Plus+ 8oncontrollin Interests+ Plus+ Pre9erred Stoc6+ Plus+ -ther De7t20i6e 0ia7ilities+ *nte#p#ise alue:
$
&.'! ,&' !. /,/01 (') ','! 2 2 2 4, 4 ,250
Name: *arrants+ -ptions -utstandin+ 5estricted Stoc6+ Total:
*xe#cise Nume#: $#ice: '. ' . $ . .' ' !. !. $ /.& / .& '.''
(ilution . '.#&& '.'' 2.321
T#ansaction Assumptions & Model Output !umma#y Current Share Price+ ->er Premium+ ->er Price Per Share+ " De7t+ " E:uit;+
$
Enterprise
$
,
$
&.'! ,/& .'&
$u#c"ase $#ice Calculations: Basic !"a#es Outstandin): Basic *+uity alue: (iluted !"a#es Outstandin):
$
!#.# '.!" #.! !." &!."
E:uit;
$ $
!,&# ,!&
De7t 5e:uired+ E:uit; @sed+
$ $
,#/ ','
EI3DA Purchase Multiple+ aseline EI3DA Exit Multiple+ Cash2on2Cash 5eturn+ Internal 5ate o9 5eturn (I55)+
/ . x '. x &. x '/.&"
Ad4isor; ?ee "+ ?inancin ?ee "+
.&!" '."
(iluted !"a#e Calculations 6 $u#c"ase $#ice: (iluted *+uity alue: 0ess+ Cash 1 Short23erm In4estments+ Plus+ De7t+ Plus+ 8oncontrollin Interests+ Plus+ Pre9erred Stoc6+ Plus+ -ther De7t20i6e 0ia7ilities+ *nte#p#ise alue:
4,278 (') ','! 2 2 2 8,59/
Name: *arrants+ -ptions -utstandin+ 5estricted Stoc6+ Total:
*xe#cise Nume#: $#ice: '. $ .' !. $ /.& '.''
(ilution '.!#& &. '.'' 4.522
(et Assumptions (et $e#centa)es: 3otal De7t Percentae+ an6 De7t+ Bih2%ield De7t+
(et Amounts: !." !!." !."
an6 De7t Interest 5ate+ Bih2%ield De7t Interest 5ate+
3otal De7t 5e:uired+ an6 De7t+ Bih2%ield De7t+
." /."
$
an6 De7t Principal 5epa;ment "+ Bih2%ield De7t Principal 5epa;ment "+
,#/ &,& &,'# '." ."
!ou#ces & ses o ;unds !ou#ces: an6 De7t+ Bih2%ield De7t+ Assume Existin De7t+ In4estor E:uit;+ Total !ou#ces:
$
ses: E:uit;
&,& &,'# 2 ',' 8,/42
$
!,&# ','! 2 ' # 8,/42
Ope#atin) Assumptions Initial Cash alance+ Minimum Cash alance+
$
' !
Prior %ear & 5e4enue roth "+ C-S " 5e4enue+ S1A " 5e4enue+ 51D " 5e4enue+
Approximate Interest 5ate on Existin De7t+
Last >ea#
%ear '
./"
$#o=ections %ear
%ear &
%ear
%ear !
'." #.!" &.&" ."
.'" ." &." ."
0.1? /1./? 27.2? /.4?
!." !.!" &." ."
!." !.!" &." ."
." !.!" &." ."
." !.!" &." ."
." !.!" &." ."
Stoc62ased Compensation " 5e4enue+ Depreciation 1 AmortiFation " 5e4enue+ E>ecti4e Cash Interest 5ate+
'." .#" &."
'." #.#" ."
0.8? 7.7? 5.1?
'." #.!" ."
'." #.!" ."
'." #.!" ."
'." #.!" ."
'." #.!" ."
AmortiFation o9 Intani7les+ Chane in -peratin Assets and 0ia7ilities " 5e4enue+ CapEx " 5e4enue+
&!
'
./" ."
(.'") !.&"
19 @8.2? /.1?
!' (&.#") !.!"
!' (&.#") !.!"
! (&.#") !.!"
(&.#") !.!"
(&.#") !.!"
Income !tatement Historical
eenue: Cost o9 oods Sold+ #oss $#oDt: -peratin Expenses+ Sellin, eneral 1 Administrati4e+ 5esearch 1 De4elopment+ AmortiFation o9 Intani7les+ Total Ope#atin) *xpenses:
Projections
Prior %ear
Prior %ear &
Prior %ear '
Last >ea#
0,805
0,797 /'& 388 !! &! 448
Ope#atin) Income: Interest Income+ Interest Expense 2 Existin De7t+ Interest Expense 2 8e De7t+ $#e-Tax Income: Income 3ax Pro4ision+
!& /& ' 884
/05 (#') 2 114 '/
Net Income: *BIT(A:
229 448
0,331 ##! 0,057
//2 ' ('!) 2 117 '
211 807
%ear '
2,507 798 0,0/2
2,003 / 0,048
%ear &
2,224 ','' 0,201
%ear
2,10/ ',!& 0,282
%ear
2,/58 ',/ 0,102
%ear !
2,/97 ','& 0,142
487 35 19 838
!!/ / !' 952
!# / !' 914
' '' ! 949
! '! 993
! '# 752
//8 0 @79 185 055
/41 ' 2 () 053 #
/97 2 (&/) 045 !&
454 2 (&) 074 !
411 2 (') 221 #
445 2 (&/#) 242 ##
280 82/
90 811
39 889
025 950
0/4 919
08/ 985
Cas" ;lo% !tatement Historical
Prior %ear &
Prior %ear '
Projections
%ear '
Last >ea#
%ear &
%ear
%ear
%ear !
Ope#atin) Actiities: Net Income: Depreciation 1 AmortiFation+ Stoc62ased Compensation+ Chane in -peratin Assets 1 0ia7ilities+ Cas" ;lo% #om Ope#ations: Inestin) Actiities: Capital Expenditures+ -ne23ime and -ther Items+ Cas" ;lo% #om Inestin):
229 ' & ' /08
('') (',!) @0,779
211 ' (') 175
(') (!) @041
280 097 11 @024 1/8
@78 @7 @3/
;#ee Cas" ;lo%: einnin Cash alance+ Plus+ ?ree Cash ?lo+ 0ess+ Minimum Cash alance+
$
Cash A4aila7le 9or 8e De7t 5epa;ment+ Cash @sed 9or 8e De7t 5epa;ment+ einnin Cash alance+ 8et Chane in Cash+ *ndin) Cas" Balance:
90 '# ( !/) 22/
288
2/7
281
109
025 '/ (!) 277
0/4 & () 103
08/ &' # (/) 1/1
('') 2 @008
('&&) 2 @022
('&) 2 @029
('&) 2 @012
(') 2 @018
057
018
080
079
257
' $ '# (!)
! $ ' (!)
! '' (!)
! (!) $
39 '## ! (&) 247
' $ (&) 45
' (') ! 2 45
$
'' ('') $
! 2 45
! '# (!)
$
'# ('#) $
! 2 45
! &# (!) &# (&#)
$
! 2 45
(et & Inte#est !c"edules Historical
Prior %ear &
Projections
Prior %ear '
%ear '
Last >ea#
%ear &
%ear
%ear
%ear !
einnin an6 De7t+ Mandator; 5epa;ment+ -ptional 5epa;ment+ *ndin) BanE (et:
$
&,& $ (&) (#) 2,279
&,&# $ (&) ('') 2,040
&,'!' $ (&) (') 0,335
',// $ (&) ('') 0,752
',#& (&) ('#') 0,434
einnin Bih2%ield De7t+ Mandator; 5epa;ment+ -ptional 5epa;ment+ *ndin) ield (et:
$
&,'# 2 2 2,097
&,'# 2 2 2,097
&,'# 2 2 2,097
&,'# 2 2 2,097
$
&,'# 2 2 2,097
Interest Paid on 8e De7t+
$
(&/#)
$
$
$
() $
(&/) $
(&) $
(') $
2
2
2
2
Existin De7t alance+
2
Inesto# etu#ns Historical
Prior %ear &
Projections
Prior %ear '
EI3DA+ EI3DA Multiple+ Enterprise
Last >ea#
Cas"-on-Cas" etu#n @etu#ns Multiple: I:
%ear '
%ear &
%ear
%ear
%ear !
2
2
'. x ,& ,##
*BIT(A *xit Multiple: 3.4 x 05.5 x 05.4 x '/.&" '/.&" '/.&" '/.&" '/.&" '/.&" '/.&" '/.&" '/.&" '/.&" '/.&" '/.&" '/.&" '/.&" '/.&" '/.&" '/.&" '/.&" '/.&" '/.&" '/.&"
00.5 x '/.&" '/.&" '/.&" '/.&" '/.&" '/.&" '/.&"
00.4 x '/.&" '/.&" '/.&" '/.&" '/.&" '/.&" '/.&"
02.5 x '/.&" '/.&" '/.&" '/.&" '/.&" '/.&" '/.&"
? (et: 94.5? '/.&" '/.&" '/.&" '/.&" '/.&" '/.&" '/.&"
74.5? '/.&" '/.&" '/.&" '/.&" '/.&" '/.&" '/.&"
35.5? '/.&" '/.&" '/.&" '/.&" '/.&" '/.&" '/.&"
34.5? '/.&" '/.&" '/.&" '/.&" '/.&" '/.&" '/.&"
82/ 3.9 x 8,59/ @0,801
$
2
2
2./ x 03.2?
!ensitiity Analysis - 4->ea# I and $u#c"ase $#emium s. *xit Multiple:
# e e c e $ s F i # a $ " m c u e # i # u a " $ m e # ! $
98./0 91./7 95.4/ 89.85 8/.88 80.92 47.97
'/.&" 15.5? 24.5? 25.5? 04.5? 05.5? 4.5? 5.5?
7.5 x '/.&" '/.&" '/.&" '/.&" '/.&" '/.&" '/.&"
7.4 x '/.&" '/.&" '/.&" '/.&" '/.&" '/.&" '/.&"
3.5 x '/.&" '/.&" '/.&" '/.&" '/.&" '/.&" '/.&"
!ensitiity Analysis - 4->ea# I and $u#c"ase $#emium s. ? (et:
# e e c e $ s F i # a $ " m c u e # i # u a " $ m e # ! $
98./0 91./7 95.4/ 89.85 8/.88 80.92 47.97
'/.&" 15.5? 24.5? 25.5? 04.5? 05.5? 4.5? 5.5?
44.5? '/.&" '/.&" '/.&" '/.&" '/.&" '/.&" '/.&"
85.5? '/.&" '/.&" '/.&" '/.&" '/.&" '/.&" '/.&"
84.5? '/.&" '/.&" '/.&" '/.&" '/.&" '/.&" '/.&"
95.5? '/.&" '/.&" '/.&" '/.&" '/.&" '/.&" '/.&"
75.5? '/.&" '/.&" '/.&" '/.&" '/.&" '/.&" '/.&"
