You are on page 1of 20

Step 1

Fractional years per period


x

1.00

1.00

1.00

1.00

1.00

Income Statement
($ in millions)

Total revenue
COGS
Gross profit
SG&A
EBITDA
Depreciation
Amortization
Stock-based comp
EBIT
EBITA
Interest (income) / expense
Cash
Revolver interest
Revolver undrawn commitment fee
Senior credit facility
Subordinated note
Convertible bond
Interest (income) / expense
Equity income in affiliates
Other (income) / expense
Income before taxes
Provision for tax
GAAP net income
Net income attributable to noncontrolling interests
Preferred dividends
GAAP net income available to common
Capital expenditures

0.50

MRY
2012

2013

Fiscal Years Ending December 31,


2014
2015
2016

2017

2013

Fiscal Years Ending December 31,


2014
2015
2016

2017

$440.8
234.4
206.4
79.6
126.8
14.0
11.6
10.8
90.4
112.8
NA
NA
NA
NA
NA
NA
19.0

71.4
28.4
43.0

$43.0
$15.2

Balance Sheet
($ in millions)

MRY
2012

Assets
Cash and equivalents
Accounts receivable
Inventory
Deferred tax asset, current
Other current assets
Total current assets
PP&E, gross
( ) Accumulated depreciation
PP&E, net
Goodwill
Other intangible assets
Equity investments
Other assets
Total assets

$157.1
136.4

8.8
8.2
310.6
44.0
(6.0)
38.0
61.1
37.5

14.3
$461.4

Liabilities & Shareholders' Equity


Accounts payable
Accrued expenses
Client deposits
Income taxes payable
Deferred revenue
Other current liabilities
Current portion of long-term debt
Total current liabilities
Revolver
Senior credit facility
Subordinated note
Convertible bond
Total debt
Net deferred tax liability / (asset)
Other long-term liabilities
Total liabilities
Noncontrolling interests
Preferred stock
Common equity
Total liabilities & shareholders' equity
Check

$20.7
15.4

2.9
20.0
36.2

95.2
15.0

45.5
190.0
250.5
(15.4)
17.9
348.2

113.3
$461.4

Page 1 of 20

Step 2
x

Income Statement
($ in millions)

Total revenue
COGS
Gross profit
SG&A
EBITDA
Depreciation
Amortization
Stock-based comp
EBIT
EBITA
Interest (income) / expense
Cash
Revolver interest
Revolver undrawn commitment fee
Senior credit facility
Subordinated note
Convertible bond
Interest (income) / expense
Equity income in affiliates
Other (income) / expense
Income before taxes
Provision for tax
GAAP net income
Net income attributable to noncontrolling interests
Preferred dividends
GAAP net income available to common
Capital expenditures

MRY
2012

2013

Fiscal Years Ending December 31,


2014
2015
2016

2017

$440.8
234.4
206.4
79.6
126.8
14.0
11.6
10.8
90.4
112.8

$462.8
246.1
216.7
83.6
133.1
14.7
11.6
11.3
95.5
118.4

$486.0
258.4
227.6
87.8
139.8
15.4
11.6
11.9
100.9
124.4

$510.3
271.3
238.9
92.1
146.8
16.2
11.6
12.5
106.5
130.6

$535.8
284.9
250.9
96.8
154.1
17.0
11.6
13.1
112.4
137.1

$562.6
299.2
263.4
101.6
161.8
17.9
11.6
13.8
118.6
144.0

NA
NA
NA
NA
NA
NA
19.0

71.4
28.4
43.0

$43.0

95.5
38.2
57.3

100.9
40.3
60.5

106.5
42.6
63.9

112.4
45.0
67.4

118.6
47.4
71.1

$57.3

$60.5

$63.9

$67.4

$71.1

$15.2

$16.0

$16.8

$17.6

$18.5

$19.4

Key Performance Metrics & Drivers


Sales growth

4.9%

5.0%

5.0%

5.0%

5.0%

5.0%

COGS / sales
SG&A / sales
Depreciation / sales
Amortization / sales
Stock-based comp / sales
Capex / sales

53.2%
18.1%
3.2%
2.6%
2.5%
3.4%

53.2%
18.1%
3.2%
2.5%
2.5%
3.4%

53.2%
18.1%
3.2%
2.4%
2.5%
3.4%

53.2%
18.1%
3.2%
2.3%
2.5%
3.4%

53.2%
18.1%
3.2%
2.2%
2.5%
3.4%

53.2%
18.1%
3.2%
2.1%
2.5%
3.4%

Tax rate

39.8%

40.0%

40.0%

40.0%

40.0%

40.0%

Balance Sheet

Page 2 of 20

Step 3
x
x

Income Statement
Balance Sheet
($ in millions)

MRY
2012

Fiscal Years Ending December 31,


2014
2015
2016

2013

2017

Assets
Cash and equivalents
Accounts receivable
Inventory
Deferred tax asset, current
Other current assets
Total current assets
PP&E, gross
( ) Accumulated depreciation
PP&E, net
Goodwill
Other intangible assets
Equity investments
Other assets
Total assets

$157.1
136.4

8.8
8.2
310.6
44.0
(6.0)
38.0
61.1
37.5

14.3
$461.4

60.0
(20.7)
39.2
61.1
25.9

76.7
(36.2)
40.6
61.1
14.3

94.3
(52.4)
41.9
61.1
2.7

112.8
(69.4)
43.4
61.1

132.2
(87.3)
44.9
61.1

14.3
$140.5

14.3
$130.2

14.3
$120.0

14.3
$118.8

14.3
$120.3

17.9
17.9

17.9
17.9

17.9
17.9

17.9
17.9

17.9
17.9

181.9
$199.8

254.3
$272.2

330.7
$348.6

416.6
$434.5

508.5
$526.4

(59.305)
(142.002)
Page 3 of 20

(228.602)

(315.736)

(406.097)

Liabilities & Shareholders' Equity


Accounts payable
Accrued expenses
Client deposits
Income taxes payable
Deferred revenue
Other current liabilities
Current portion of long-term debt
Total current liabilities
Revolver
Senior credit facility
Subordinated note
Convertible bond
Total debt
Net deferred tax liability / (asset)
Other long-term liabilities
Total liabilities
Noncontrolling interests
Preferred stock
Common equity
Total liabilities & shareholders' equity
Check

$20.7
15.4

2.9
20.0
36.2

95.2
15.0

45.5
190.0
250.5
(15.4)
17.9
348.2

113.3
$461.4

Step 4
x
x

Income Statement
Balance Sheet
MRY
2012

($ in millions)

Fiscal Years Ending December 31,


2014
2015
2016

2013

2017

Assets
Cash and equivalents
Accounts receivable
Inventory
Deferred tax asset, current
Other current assets
Total current assets
PP&E, gross
( ) Accumulated depreciation
PP&E, net
Goodwill
Other intangible assets
Equity investments
Other assets
Total assets

$157.1
136.4

8.8
8.2
310.6
44.0
(6.0)
38.0
61.1
37.5

14.3
$461.4

143.3

9.3
8.6
161.2
60.0
(20.7)
39.2
61.1
25.9

150.4

9.7
9.1
169.2
76.7
(36.2)
40.6
61.1
14.3

157.9

10.2
9.5
177.7
94.3
(52.4)
41.9
61.1
2.7

165.8

10.7
10.0
186.6
112.8
(69.4)
43.4
61.1

174.1

11.3
10.5
195.9
132.2
(87.3)
44.9
61.1

14.3
$301.7

14.3
$299.5

14.3
$297.7

14.3
$305.4

14.3
$316.2

$21.7
16.1

3.1
21.0
38.0

99.9

$22.8
17.0

3.2
22.1
39.9

104.9

$23.9
17.8

3.4
23.2
41.9

110.2

$25.1
18.7

3.6
24.3
44.0

115.7

$26.4
19.6

3.7
25.5
46.2

121.5

Liabilities & Shareholders' Equity


Accounts payable
Accrued expenses
Client deposits
Income taxes payable
Deferred revenue
Other current liabilities
Current portion of long-term debt
Total current liabilities
Revolver
Senior credit facility
Subordinated note
Convertible bond
Total debt
Net deferred tax liability / (asset)
Other long-term liabilities
Total liabilities
Noncontrolling interests
Preferred stock
Common equity
Total liabilities & shareholders' equity

$20.7
15.4

2.9
20.0
36.2

95.2
15.0

45.5
190.0
250.5
(15.4)
17.9
348.2

113.3
$461.4

Check

17.9
117.9

17.9
122.8

17.9
128.1

17.9
133.6

17.9
139.4

181.9
$299.7

254.3
$377.2

330.7
$458.8

416.6
$550.2

508.5
$647.9

1.930

(77.705)

(161.090)

(244.849)

(331.665)

Working Capital
($ in millions)

MRY
2012

2013

Fiscal Years Ending December 31,


2014
2015
2016

2017

$136.4

8.8
8.2
153.5
20.7
15.4

2.9
20.0
36.2
95.2
$58.3

$143.3

9.3
8.6
161.2
21.7
16.1

3.1
21.0
38.0
99.9
$61.2

$150.4

9.7
9.1
169.2
22.8
17.0

3.2
22.1
39.9
104.9
$64.3

$157.9

10.2
9.5
177.7
23.9
17.8

3.4
23.2
41.9
110.2
$67.5

$165.8

10.7
10.0
186.6
25.1
18.7

3.6
24.3
44.0
115.7
$70.9

$174.1

11.3
10.5
195.9
26.4
19.6

3.7
25.5
46.2
121.5
$74.4

$440.8
234.4

$462.8
246.1
246.1

$486.0
258.4
258.4

$510.3
271.3
271.3

$535.8
284.9
284.9

$562.6
299.2
299.2

Net Working Capital


Accounts receivable
Inventory
Deferred tax asset, current
Other current assets
Non-cash current assets
Accounts payable
Accrued expenses
Client deposits
Income taxes payable
Deferred revenue
Other current liabilities
Non-debt current liabilities
Net working capital
Working Capital Drivers
Sales
COGS
Purchases
Accounts receivable / sales
Inventory / COGS
Deferred tax asset, current / sales
Other current assets / COGS
Accounts payable / COGS
Accrued expenses / COGS
Client deposits / sales
Income taxes payable / COGS
Deferred revenue / sales
Other current liabilities / COGS
Accounts receivable days
Accounts payable days
Inventory days
Inventory turnover

Selector
1
2
1
2

30.95%

2.00%
3.51%

30.95%

2.00%
3.51%

30.95%

2.00%
3.51%

30.95%

2.00%
3.51%

30.95%

2.00%
3.51%

30.95%

2.00%
3.51%

2
2
1
2
1
2

8.81%
6.56%

1.25%
4.54%
15.44%

8.81%
6.56%

1.25%
4.54%
15.44%

8.81%
6.56%

1.25%
4.54%
15.44%

8.81%
6.56%

1.25%
4.54%
15.44%

8.81%
6.56%

1.25%
4.54%
15.44%

8.81%
6.56%

1.25%
4.54%
15.44%

110.3
31.4

NA

110.3
31.4

NA

110.3
31.4

NA

110.3
31.4

NA

110.3
31.4

NA

Page 4 of 20

Step 5
x
x

Income Statement
Balance Sheet
($ in millions)

MRY
2012

2013

Fiscal Years Ending December 31,


2014
2015
2016

2017

$248.6
143.3

9.3
8.6
409.7
60.0
(20.7)
39.2
61.1
25.9

$328.2
150.4

9.7
9.1
497.4
76.7
(36.2)
40.6
61.1
14.3

$411.6
157.9

10.2
9.5
589.3
94.3
(52.4)
41.9
61.1
2.7

$495.3
165.8

10.7
10.0
681.9
112.8
(69.4)
43.4
61.1

$582.2
174.1

11.3
10.5
778.1
132.2
(87.3)
44.9
61.1

14.3
$550.2

14.3
$627.7

14.3
$709.3

14.3
$800.7

14.3
$898.4

$21.7
16.1

3.1
21.0
38.0

99.9

$22.8
17.0

3.2
22.1
39.9

104.9

$23.9
17.8

3.4
23.2
41.9

110.2

$25.1
18.7

3.6
24.3
44.0

115.7

$26.4
19.6

3.7
25.5
46.2

121.5

Assets
Cash and equivalents
Accounts receivable
Inventory
Deferred tax asset, current
Other current assets
Total current assets
PP&E, gross
( ) Accumulated depreciation
PP&E, net
Goodwill
Other intangible assets
Equity investments
Other assets
Total assets

$157.1
136.4

8.8
8.2
310.6
44.0
(6.0)
38.0
61.1
37.5

14.3
$461.4

Liabilities & Shareholders' Equity


Accounts payable
Accrued expenses
Client deposits
Income taxes payable
Deferred revenue
Other current liabilities
Current portion of long-term debt
Total current liabilities
Revolver
Senior credit facility
Subordinated note
Convertible bond
Total debt
Net deferred tax liability / (asset)
Other long-term liabilities
Total liabilities
Noncontrolling interests
Preferred stock
Common equity
Total liabilities & shareholders' equity

$20.7
15.4

2.9
20.0
36.2

95.2
15.0

45.5
190.0
250.5
(15.4)
17.9
348.2

113.3
$461.4

Check

17.9
117.9

17.9
122.8

17.9
128.1

17.9
133.6

17.9
139.4

181.9
$299.7

254.3
$377.2

330.7
$458.8

416.6
$550.2

508.5
$647.9

250.500

250.500

250.500

250.500

250.500

Cash Flow Statement


($ in millions)

MRY
2012

Fiscal Years Ending December 31,


2014
2015
2016

2013

2017

Operating Activities
Net income
Depreciation
Amortization of intangibles
Stock-based compensation
Equity income in affiliates
Cash dividends from equity investments
Non-cash noncontrolling (minority) interest
Income statement adjustments
(Increase) / decrease in working capital
Increase / (decrease) in net DTL
(Increase) / decrease in other assets
Increase / (decrease) in other liabilities
Balance sheet adjustments
Cash flow from operating activities

$57.3
14.7
11.6
11.3

$60.5
15.4
11.6
11.9

$63.9
16.2
11.6
12.5

$72.8
17.0
2.7
13.1

$78.1
17.9

13.8

37.6
(2.9)
15.4

12.5
$107.4

38.9
(3.1)

(3.1)
$96.4

40.3
(3.2)

(3.2)
$101.0

32.8
(3.4)

(3.4)
$102.2

31.7
(3.5)

(3.5)
$106.2

($16.0)

($16.8)

($17.6)

($18.5)

($19.4)

$91.5

$79.6

$83.4

$83.8

$86.8

Investing Activities
Cash flow from investing activities
Financing Activities
Revolver
Senior credit facility
Subordinated note
Convertible bond
Preferred stock
Cash flow from financing activities
Change in cash

Working Capital

Page 5 of 20

Step 6
x
x
x
x
x

Income Statement
Balance Sheet
Cash Flow Statement
Working Capital
Debt Schedule
MRY
2012

($ in millions)

Fiscal Years Ending December 31,


2014
2015
2016

2013

2017

Scheduled Debt Amortization (%)


Senior credit facility
Subordinated note

Debt Triggers
Average interest?

No
Fixed Rate /
Coupon

Revolver
Senior credit facility
Subordinated note
Convertible bond
Preferred stock

8.25%
9.50%
10.25%

Spread to
LIBOR
4.25%
4.75%

Senior
Debt?
Yes
Yes
No
No
No

Page 6 of 20

Preferred
Security?
No
No
No
No
Yes

Convertible
Security?
No
No
No
Yes
No

Conversion
Price

$26.77

Cash
Sweep
100.0%
100.0%

Step 7
x
x

Income Statement
Balance Sheet
MRY
2012

($ in millions)

2013

Fiscal Years Ending December 31,


2014
2015
2016

2017

$248.6
143.3

9.3
8.6
409.7
60.0
(20.7)
39.2
61.1
25.9

$328.2
150.4

9.7
9.1
497.4
76.7
(36.2)
40.6
61.1
14.3

$411.6
157.9

10.2
9.5
589.3
94.3
(52.4)
41.9
61.1
2.7

$495.3
165.8

10.7
10.0
681.9
112.8
(69.4)
43.4
61.1

$582.2
174.1

11.3
10.5
778.1
132.2
(87.3)
44.9
61.1

14.3
$550.2

14.3
$627.7

14.3
$709.3

14.3
$800.7

14.3
$898.4

$21.7
16.1

3.1
21.0
38.0

99.9
15.0

45.5
190.0
250.5

$22.8
17.0

3.2
22.1
39.9

104.9
15.0

45.5
190.0
250.5

$23.9
17.8

3.4
23.2
41.9

110.2
15.0

45.5
190.0
250.5

$25.1
18.7

3.6
24.3
44.0

115.7
15.0

45.5
190.0
250.5

$26.4
19.6

3.7
25.5
46.2

121.5
15.0

45.5
190.0
250.5

17.9
368.4

181.9
$550.2

17.9
373.3

254.3
$627.7

17.9
378.6

330.7
$709.3

17.9
384.1

416.6
$800.7

17.9
389.9

508.5
$898.4

Assets
Cash and equivalents
Accounts receivable
Inventory
Deferred tax asset, current
Other current assets
Total current assets
PP&E, gross
( ) Accumulated depreciation
PP&E, net
Goodwill
Other intangible assets
Equity investments
Other assets
Total assets

$157.1
136.4

8.8
8.2
310.6
44.0
(6.0)
38.0
61.1
37.5

14.3
$461.4

Liabilities & Shareholders' Equity


Accounts payable
Accrued expenses
Client deposits
Income taxes payable
Deferred revenue
Other current liabilities
Current portion of long-term debt
Total current liabilities
Revolver
Senior credit facility
Subordinated note
Convertible bond
Total debt
Net deferred tax liability / (asset)
Other long-term liabilities
Total liabilities
Noncontrolling interests
Preferred stock
Common equity
Total liabilities & shareholders' equity

$20.7
15.4

2.9
20.0
36.2

95.2
15.0

45.5
190.0
250.5
(15.4)
17.9
348.2

113.3
$461.4

Check

x
x
x

Cash Flow Statement


Working Capital
Debt Schedule
MRY
2012

($ in millions)

Fiscal Years Ending December 31,


2014
2015
2016

2013

2017

Debt Schedule
Revolver
Beginning balance
( + ) Revolver draw-down
( ) Revolver pay-down
Ending balance

$15.0

Bank revolver commitment


Undrawn revolver balance
Senior credit facility
Beginning balance
( ) Mandatory repayment
( ) Optional repayment
Ending balance

$15.0

$15.0

$15.0

$15.0

$15.0

$15.0

$15.0

$15.0

$15.0

$15.0

$100.0
85.0

$100.0
85.0

$100.0
85.0

$100.0
85.0

$100.0
85.0

$100.0
85.0

Subordinated note
Beginning balance
( ) Scheduled maturity
( ) Optional repayment
Ending balance

$45.5

$45.5

$45.5

$45.5

$45.5

$45.5

$45.5

$45.5

$45.5

$45.5

$45.5

Convertible bond
Beginning balance
( ) Scheduled maturity
Ending balance

$190.0

$190.0

$190.0

$190.0

$190.0

$190.0

$190.0

$190.0

$190.0

$190.0

$190.0

Preferred stock
Beginning balance
( ) Retirement
Ending balance
Scheduled Debt Amortization (%)
Senior credit facility
Subordinated note
Debt Triggers
Average interest?

No
Fixed Rate /
Coupon

Revolver
Senior credit facility
Subordinated note
Convertible bond
Preferred stock

8.25%
9.50%
10.25%

Spread to
LIBOR
4.25%
4.75%

Senior
Debt?
Yes
Yes
No
No
No

Preferred
Security?
No
No
No
No
Yes

Convertible
Security?
No
No
No
Yes
No

Conversion
Price

$26.77

Cash
Sweep
100.0%
100.0%

Page 7 of 20

Step 8
x
x
x

Income Statement
Balance Sheet
Cash Flow Statement
MRY
2012

($ in millions)

Fiscal Years Ending December 31,


2014
2015
2016

2013

2017

Operating Activities
Net income
Depreciation
Amortization of intangibles
Stock-based compensation
Equity income in affiliates
Cash dividends from equity investments
Non-cash noncontrolling (minority) interest
Income statement adjustments
(Increase) / decrease in working capital
Increase / (decrease) in net DTL
(Increase) / decrease in other assets
Increase / (decrease) in other liabilities
Balance sheet adjustments
Cash flow from operating activities

$57.3
14.7
11.6
11.3

$60.5
15.4
11.6
11.9

$63.9
16.2
11.6
12.5

$72.8
17.0
2.7
13.1

$78.1
17.9

13.8

37.6
(2.9)
15.4

12.5
$107.4

38.9
(3.1)

(3.1)
$96.4

40.3
(3.2)

(3.2)
$101.0

32.8
(3.4)

(3.4)
$102.2

31.7
(3.5)

(3.5)
$106.2

($16.0)

($16.8)

($17.6)

($18.5)

($19.4)

Investing Activities
Cash flow from investing activities
Financing Activities
Revolver
Senior credit facility
Subordinated note
Convertible bond
Preferred stock
Cash flow from financing activities

($15.0)

($15.0)

Change in cash

x
x

$76.5

$79.6

$83.4

$83.8

$86.8

Working Capital
Debt Schedule
2013

Fiscal Years Ending December 31,


2014
2015
2016

2017

Beginning cash balance


( ) Minimum cash balance
Excess cash / (cash deficit)
( + ) Cash flow available for debt service
Total cash available for debt service
Senior credit facility
Subordinated note
Convertible bond
( ) Scheduled debt repayment
Cash available for sweep / (revolver draw-down)

$157.1
(100.0)
57.1
91.5
148.6

$148.6

$233.6
(100.0)
133.6
79.6
213.2

$213.2

$480.3
(100.0)
380.3
86.8
467.2

$467.2

Optional debt repayment


Revolver
Senior credit facility
Subordinated note
Total optional debt repayment

($15.0)

($15.0)

$15.0

$15.0

(15.0)

$100.0
85.0

$100.0
100.0

$100.0
100.0

$100.0
100.0

$100.0
100.0

$100.0
100.0

MRY
2012

($ in millions)

$313.2
(100.0)
213.2
83.4
296.6

$296.6

$396.6
(100.0)
296.6
83.8
380.3

$380.3

Debt Schedule
Revolver
Beginning balance
( + ) Revolver draw-down
( ) Revolver pay-down
Ending balance
Bank revolver commitment
Undrawn revolver balance
Senior credit facility
Beginning balance
( ) Mandatory repayment
( ) Optional repayment
Ending balance

Subordinated note
Beginning balance
( ) Scheduled maturity
( ) Optional repayment
Ending balance

$45.5

$45.5

$45.5

$45.5

$45.5

$45.5

$45.5

$45.5

$45.5

$45.5

$45.5

Convertible bond
Beginning balance
( ) Scheduled maturity
Ending balance

$190.0

$190.0

$190.0

$190.0

$190.0

$190.0

$190.0

$190.0

$190.0

$190.0

$190.0

Preferred stock
Beginning balance
( ) Retirement
Ending balance
Scheduled Debt Amortization (%)
Senior credit facility
Subordinated note
Debt Triggers
Average interest?

No
Fixed Rate /
Coupon

Revolver
Senior credit facility
Subordinated note
Convertible bond
Preferred stock

8.25%
9.50%
10.25%

Spread to
LIBOR
4.25%
4.75%

Senior
Debt?
Yes
Yes
No
No
No

Preferred
Security?
No
No
No
No
Yes

Convertible
Security?
No
No
No
Yes
No

Conversion
Price

$26.77

Cash
Sweep
100.0%
100.0%

Page 8 of 20

Step 9
x

Income Statement
($ in millions)

Total revenue
COGS
Gross profit
SG&A
EBITDA
Depreciation
Amortization
Stock-based comp
EBIT
EBITA
Interest (income) / expense
Cash
Revolver interest
Revolver undrawn commitment fee
Senior credit facility
Subordinated note
Convertible bond
Interest (income) / expense
Equity income in affiliates
Other (income) / expense
Income before taxes
Provision for tax
GAAP net income
Net income attributable to noncontrolling interests
Preferred dividends
GAAP net income available to common
Capital expenditures

MRY
2012
$440.8
234.4
206.4
79.6
126.8
14.0
11.6
10.8
90.4
112.8

2013

Fiscal Years Ending December 31,


2014
2015
2016

2017

$462.8
246.1
216.7
83.6
133.1
14.7
11.6
11.3
95.5
118.4

$486.0
258.4
227.6
87.8
139.8
15.4
11.6
11.9
100.9
124.4

$562.6
299.2
263.4
101.6
161.8
17.9

13.8
130.2
144.0

$510.3
271.3
238.9
92.1
146.8
16.2
11.6
12.5
106.5
130.6

$535.8
284.9
250.9
96.8
154.1
17.0
2.7
13.1
121.3
137.1

NA
NA
NA
NA
NA
NA
19.0

71.4
28.4
43.0

$43.0

(0.4)
1.2
0.4

3.8
18.1
23.0

(0.5)

0.5

3.8
18.1
21.8

(0.7)

0.5

3.8
18.1
21.6

(0.9)

0.5

3.8
18.1
21.4

(1.1)

0.5

3.8
18.1
21.2

72.5
29.0
43.5

$43.5

79.1
31.6
47.5

$47.5

84.9
34.0
50.9

$50.9

99.9
40.0
59.9

$59.9

108.9
43.6
65.4

$65.4

$15.2

$16.0

$16.8

$17.6

$18.5

$19.4

Key Performance Metrics & Drivers


Sales growth

x
x
x
x

4.9%

5.0%

5.0%

5.0%

5.0%

5.0%

COGS / sales
SG&A / sales
Depreciation / sales
Amortization / sales
Stock-based comp / sales
Capex / sales

53.2%
18.1%
3.2%
2.6%
2.5%
3.4%

53.2%
18.1%
3.2%
2.5%
2.5%
3.4%

53.2%
18.1%
3.2%
2.4%
2.5%
3.4%

53.2%
18.1%
3.2%
2.3%
2.5%
3.4%

53.2%
18.1%
3.2%
0.5%
2.5%
3.4%

53.2%
18.1%
3.2%

2.5%
3.4%

Tax rate

39.8%

40.0%

40.0%

40.0%

40.0%

40.0%

Balance Sheet
Cash Flow Statement
Working Capital
Debt Schedule
2013

Fiscal Years Ending December 31,


2014
2015
2016

2017

Beginning cash balance


( ) Minimum cash balance
Excess cash / (cash deficit)
( + ) Cash flow available for debt service
Total cash available for debt service
Senior credit facility
Subordinated note
Convertible bond
( ) Scheduled debt repayment
Cash available for sweep / (revolver draw-down)

$157.1
(100.0)
57.1
77.6
134.7

$134.7

$219.7
(100.0)
119.7
66.6
186.3

$186.3

$286.3
(100.0)
186.3
70.4
256.8

$256.8

$356.8
(100.0)
256.8
70.9
327.7

$327.7

$427.7
(100.0)
327.7
74.1
401.8

$401.8

Optional debt repayment


Revolver
Senior credit facility
Subordinated note
Total optional debt repayment

($15.0)

($15.0)

$15.0

(15.0)

MRY
2012

($ in millions)

Debt Schedule
Revolver
Beginning balance
( + ) Revolver draw-down
( ) Revolver pay-down
Ending balance

$15.0

Bank revolver commitment


Undrawn revolver balance

$100.0
85.0

$100.0
100.0

$100.0
100.0

$100.0
100.0

$100.0
100.0

$100.0
100.0

Senior credit facility


Beginning balance
( ) Mandatory repayment
( ) Optional repayment
Ending balance

Subordinated note
Beginning balance
( ) Scheduled maturity
( ) Optional repayment
Ending balance

$45.5

$45.5

$45.5

$45.5

$45.5

$45.5

$45.5

$45.5

$45.5

$45.5

$45.5

Convertible bond
Beginning balance
( ) Scheduled maturity
Ending balance

$190.0

$190.0

$190.0

$190.0

$190.0

$190.0

$190.0

$190.0

$190.0

$190.0

$190.0

Preferred stock
Beginning balance
( ) Retirement
Ending balance
Scheduled Debt Amortization (%)
Senior credit facility
Subordinated note
Interest Rates
LIBOR
Cash
Undrawn commitment fee
Revolver
Senior credit facility
Subordinated note
Convertible bond
Preferred stock

3.74%
0.25%
0.50%

4.16%
0.25%
0.50%

4.57%
0.25%
0.50%

4.83%
0.25%
0.50%

4.98%
0.25%
0.50%

7.99%
8.49%
8.25%
9.50%
10.25%

8.41%
8.91%
8.25%
9.50%
10.25%

8.82%
9.32%
8.25%
9.50%
10.25%

9.08%
9.58%
8.25%
9.50%
10.25%

9.23%
9.73%
8.25%
9.50%
10.25%

Interest Expense / Preferred Dividends


Undrawn commitment fee

$0.4

$0.5

$0.5

$0.5

$0.5

Revolver
Senior credit facility
Subordinated note
Convertible bond
Preferred stock

$1.2

$3.8
$18.1

$3.8
$18.1

$3.8
$18.1

$3.8
$18.1

$3.8
$18.1

Senior interest expense


Total interest expense
Convertible preferred dividends
Straight preferred dividends
Total preferred dividends

$1.6
$23.4

$0.5
$22.3

$0.5
$22.3

$0.5
$22.3

$0.5
$22.3

Debt Triggers
Average interest?

No
Fixed Rate /
Coupon

Revolver
Senior credit facility
Subordinated note
Convertible bond
Preferred stock

8.25%
9.50%
10.25%

Spread to
LIBOR
4.25%
4.75%

Senior
Debt?
Yes
Yes
No
No
No

Preferred
Security?
No
No
No
No
Yes

Convertible
Security?
No
No
No
Yes
No

Conversion
Price

$26.77

Cash
Sweep
100.0%
100.0%

Page 9 of 20

Step 10
x
x
x

Income Statement
Balance Sheet
Cash Flow Statement
MRY
2012

($ in millions)

Fiscal Years Ending December 31,


2014
2015
2016

2013

2017

Operating Activities
Net income
Depreciation
Amortization of intangibles
Stock-based compensation
Equity income in affiliates
Cash dividends from equity investments
Non-cash noncontrolling (minority) interest
PIK accrual Convertible bond
PIK accrual Preferred stock
Income statement adjustments
(Increase) / decrease in working capital
Increase / (decrease) in net DTL
(Increase) / decrease in other assets
Increase / (decrease) in other liabilities
Balance sheet adjustments
Cash flow from operating activities

$43.5
14.7
11.6
11.3

$47.0
15.4
11.6
11.9

$49.9
16.2
11.6
12.5

$58.3
17.0
2.7
13.1

$63.8
17.9

13.8

9.0

46.7
(2.9)
15.4

12.5
$102.6

9.5

48.4
(3.1)

(3.1)
$92.3

9.9

50.2
(3.2)

(3.2)
$96.9

32.8
(3.4)

(3.4)
$87.8

31.7
(3.5)

(3.5)
$91.9

($16.0)

($16.8)

($17.6)

($18.5)

($19.4)

($15.0)

($15.0)

$75.5

$79.3

$69.3

$72.5

Investing Activities
Cash flow from investing activities
Financing Activities
Revolver
Senior credit facility
Subordinated note
Convertible bond
Preferred stock
Cash flow from financing activities
Change in cash

x
x

$71.7

Working Capital
Debt Schedule
2013

Fiscal Years Ending December 31,


2014
2015
2016

2017

Beginning cash balance


( ) Minimum cash balance
Excess cash / (cash deficit)
( + ) Cash flow available for debt service
Total cash available for debt service
Senior credit facility
Subordinated note
Convertible bond
( ) Scheduled debt repayment
Cash available for sweep / (revolver draw-down)

$157.1
(100.0)
57.1
86.7
143.8

$143.8

$228.8
(100.0)
128.8
75.5
204.3

$204.3

$304.3
(100.0)
204.3
79.3
283.6

$283.6

$383.6
(100.0)
283.6
69.3
353.0

$353.0

$453.0
(100.0)
353.0
72.5
425.4

$425.4

Optional debt repayment


Revolver
Senior credit facility
Subordinated note
Total optional debt repayment

($15.0)

($15.0)

$15.0

(15.0)

MRY
2012

($ in millions)

Debt Schedule
Revolver
Beginning balance
( + ) Revolver draw-down
( ) Revolver pay-down
Ending balance

$15.0

Bank revolver commitment


Undrawn revolver balance

$100.0
85.0

$100.0
100.0

$100.0
100.0

$100.0
100.0

$100.0
100.0

$100.0
100.0

Subordinated note
Beginning balance
( ) Scheduled maturity
( ) Optional repayment
Ending balance

$45.5

$45.5

$45.5

$45.5

$45.5

$45.5

$45.5

$45.5

$45.5

$45.5

$45.5

Convertible bond
Beginning balance
( + ) PIK accretion
( ) Scheduled maturity
Ending balance

$190.0

$190.0
9.0

$199.0

$199.0
9.5

$208.5

$208.5
9.9

$218.4

$218.4

$218.4

$218.4

$218.4

Senior credit facility


Beginning balance
( ) Mandatory repayment
( ) Optional repayment
Ending balance

Preferred stock
Beginning balance
( + ) PIK accretion
( ) Retirement
Ending balance
Scheduled Debt Amortization (%)
Senior credit facility
Subordinated note
Interest Rates
LIBOR
Cash
Undrawn commitment fee
Revolver
Senior credit facility
Subordinated note
Convertible bond
Preferred stock

3.74%
0.25%
0.50%

4.16%
0.25%
0.50%

4.57%
0.25%
0.50%

4.83%
0.25%
0.50%

4.98%
0.25%
0.50%

7.99%
8.49%
8.25%
9.50%
10.25%

8.41%
8.91%
8.25%
9.50%
10.25%

8.82%
9.32%
8.25%
9.50%
10.25%

9.08%
9.58%
8.25%
9.50%
10.25%

9.23%
9.73%
8.25%
9.50%
10.25%

Interest Expense / Preferred Dividends


Undrawn commitment fee

$0.4

$0.5

$0.5

$0.5

$0.5

Revolver
Senior credit facility
Subordinated note
Convertible bond
Preferred stock

$1.2

$3.8
$18.1

$3.8
$18.9

$3.8
$19.8

$3.8
$20.7

$3.8
$20.7

Senior interest expense


Cash interest expense
Total interest expense
Convertible preferred dividends
Straight preferred dividends
Total preferred dividends

$1.6
$14.4
$23.4

$0.5
$13.7
$23.2

$0.5
$14.2
$24.1

$0.5
$25.0
$25.0

$0.5
$25.0
$25.0

Interest & Dividends Paid-in-Kind (PIK)


Revolver
Senior credit facility
Subordinated note
Convertible bond
Preferred stock

50.0%

50.0%

50.0%

Preferred
Security?

Convertible
Security?

Debt Triggers
Average interest?

Revolver
Senior credit facility
Subordinated note
Convertible bond
Preferred stock

No
Fixed Rate /
Coupon

Spread to
LIBOR

8.25%
9.50%
10.25%

4.25%
4.75%

Senior
Debt?
Yes
Yes
No
No
No

No
No
No
No
Yes

No
No
No
Yes
No

Conversion
Price

$26.77

Cash
Sweep
100.0%
100.0%

Page 10 of 20

Step 11
x

Income Statement
($ in millions)

Total revenue
COGS
Gross profit
SG&A
EBITDA
Depreciation
Amortization
Stock-based comp
EBIT
EBITA
Interest (income) / expense
Cash
Revolver interest
Revolver undrawn commitment fee
Senior credit facility
Subordinated note
Convertible bond
Interest (income) / expense
Equity income in affiliates
Other (income) / expense
Income before taxes
Provision for tax
GAAP net income
Net income attributable to noncontrolling interests
Preferred dividends
GAAP net income available to common
Capital expenditures

MRY
2012

2013

Fiscal Years Ending December 31,


2014
2015
2016

2017

$440.8
234.4
206.4
79.6
126.8
14.0
11.6
10.8
90.4
112.8

$462.8
246.1
216.7
83.6
133.1
14.7
11.6
11.3
95.5
118.4

$486.0
258.4
227.6
87.8
139.8
15.4
11.6
11.9
100.9
124.4

$562.6
299.2
263.4
101.6
161.8
17.9

13.8
130.2
144.0

$510.3
271.3
238.9
92.1
146.8
16.2
11.6
12.5
106.5
130.6

$535.8
284.9
250.9
96.8
154.1
17.0
2.7
13.1
121.3
137.1

NA
NA
NA
NA
NA
NA
19.0

71.4
28.4
43.0

$43.0

(0.4)
1.2
0.4

3.8
18.1
23.0

72.5
29.0
43.5

$43.5

(0.6)

0.5

3.8
18.9
22.6

78.3
31.3
47.0

$47.0

(0.8)

0.5

3.8
19.8
23.3

83.2
33.3
49.9

$49.9

(1.0)

0.5

3.8
20.7
24.0

97.2
38.9
58.3

$58.3

(1.1)

0.5

3.8
20.7
23.9

106.3
42.5
63.8

$63.8

$15.2

$16.0

$16.8

$17.6

$18.5

$19.4

Key Performance Metrics & Drivers


Sales growth

4.9%

5.0%

5.0%

5.0%

5.0%

5.0%

COGS / sales
SG&A / sales
Depreciation / sales
Amortization / sales
Stock-based comp / sales
Capex / sales

53.2%
18.1%
3.2%
2.6%
2.5%
3.4%

53.2%
18.1%
3.2%
2.5%
2.5%
3.4%

53.2%
18.1%
3.2%
2.4%
2.5%
3.4%

53.2%
18.1%
3.2%
2.3%
2.5%
3.4%

53.2%
18.1%
3.2%
0.5%
2.5%
3.4%

53.2%
18.1%
3.2%

2.5%
3.4%

Tax rate

39.8%

40.0%

40.0%

40.0%

40.0%

40.0%

Balance Sheet
($ in millions)

MRY
2012

2013

Fiscal Years Ending December 31,


2014
2015
2016

2017

$157.1
136.4

8.8
8.2
310.6
44.0
(6.0)
38.0
61.1
37.5

14.3
$461.4

$228.8
143.3

9.3
8.6
389.9
60.0
(20.7)
39.2
61.1
25.9

14.3
$530.4

$304.3
150.4

9.7
9.1
473.5
76.7
(36.2)
40.6
61.1
14.3

14.3
$603.8

$383.6
157.9

10.2
9.5
561.3
94.3
(52.4)
41.9
61.1
2.7

14.3
$681.3

$453.0
165.8

10.7
10.0
639.5
112.8
(69.4)
43.4
61.1

14.3
$758.3

$525.4
174.1

11.3
10.5
721.3
132.2
(87.3)
44.9
61.1

14.3
$841.7

$20.7
15.4

2.9
20.0
36.2

95.2
15.0

45.5
190.0
250.5
(15.4)
17.9
348.2

113.3
$461.4

$21.7
16.1

3.1
21.0
38.0

99.9

45.5
199.0
244.5

$22.8
17.0

3.2
22.1
39.9

104.9

45.5
208.5
254.0

$23.9
17.8

3.4
23.2
41.9

110.2

45.5
218.4
263.9

$25.1
18.7

3.6
24.3
44.0

115.7

45.5
218.4
263.9

$26.4
19.6

3.7
25.5
46.2

121.5

45.5
218.4
263.9

17.9
362.4

168.1
$530.4

17.9
376.8

226.9
$603.8

17.9
392.0

289.3
$681.3

17.9
397.5

360.8
$758.3

17.9
403.3

438.4
$841.7

Assets
Cash and equivalents
Accounts receivable
Inventory
Deferred tax asset, current
Other current assets
Total current assets
PP&E, gross
( ) Accumulated depreciation
PP&E, net
Goodwill
Other intangible assets
Equity investments
Other assets
Total assets
Liabilities & Shareholders' Equity
Accounts payable
Accrued expenses
Client deposits
Income taxes payable
Deferred revenue
Other current liabilities
Current portion of long-term debt
Total current liabilities
Revolver
Senior credit facility
Subordinated note
Convertible bond
Total debt
Net deferred tax liability / (asset)
Other long-term liabilities
Total liabilities
Noncontrolling interests
Preferred stock
Common equity
Total liabilities & shareholders' equity
Check

Cash Flow Statement


($ in millions)

MRY
2012

Fiscal Years Ending December 31,


2014
2015
2016

2013

2017

Operating Activities
Net income
Depreciation
Amortization of intangibles
Stock-based compensation
Equity income in affiliates
Cash dividends from equity investments
Non-cash noncontrolling (minority) interest
PIK accrual Convertible bond
PIK accrual Preferred stock
Income statement adjustments
(Increase) / decrease in working capital
Increase / (decrease) in net DTL
(Increase) / decrease in other assets
Increase / (decrease) in other liabilities
Balance sheet adjustments
Cash flow from operating activities

$43.5
14.7
11.6
11.3

9.0

46.7
(2.9)
15.4

12.5
$102.6

$47.0
15.4
11.6
11.9

9.5

48.4
(3.1)

(3.1)
$92.3

$49.9
16.2
11.6
12.5

9.9

50.2
(3.2)

(3.2)
$96.9

$58.3
17.0
2.7
13.1

32.8
(3.4)

(3.4)
$87.8

$63.8
17.9

13.8

31.7
(3.5)

(3.5)
$91.9

($16.0)

($16.8)

($17.6)

($18.5)

($19.4)

($15.0)

($15.0)

$75.5

$79.3

$69.3

$72.5

Investing Activities
Cash flow from investing activities
Financing Activities
Revolver
Senior credit facility
Subordinated note
Convertible bond
Preferred stock
Cash flow from financing activities
Change in cash

x
x
x

$71.7

Working Capital
Debt Schedule
Equity Investments
($ in millions)

MRY
2012

Equity income in affiliates


( ) Cash dividends received from equity investments
Undistributed earnings
Dividends Received Deduction (DRD)
Current taxes payable
Deferred tax expense
Income tax expense
Tax benefit from DRD

Fiscal Years Ending December 31,


2014
2015
2016

2013

2017

80.0%

No

Page 11 of 20

Step 12
x
x
x
x
x
x
x

Income Statement
Balance Sheet
Cash Flow Statement
Working Capital
Debt Schedule
Equity Investments
Depreciation Schedule
MRY
2012

($ in millions)

Capital expenditures

2013

Fiscal Years Ending December 31,


2014
2015
2016

2017

$16.0

$16.8

$17.6

$18.5

$19.4

$0.8

$1.6
0.8

$1.6
1.7
0.9

$1.6
1.7
1.8
0.9

0.8
13.9
$14.7

2.4
13.0
$15.4

4.2
12.1
$16.2

6.0
11.1
$17.0

$1.6
1.7
1.8
1.8
1.0
7.8
10.0
$17.9

15

20

Book Depreciation (straight-line)


Useful life (yrs)
Midpoint convention

10.0
Yes

2013
$16.0
2014
$16.8
2015
$17.6
2016
$18.5
2017
$19.4
Book depreciation of capex
( + ) Book depreciation of existing fixed assets
Total book depreciation expense
Modified Accelerated Cost Recovery System (MACRS) Depreciation
MACRS Property Class
7
10

Year

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
Total

33.33%
44.45%
14.81%
7.41%

20.00%
32.00%
19.20%
11.52%
11.52%
5.76%

14.29%
24.49%
17.49%
12.49%
8.93%
8.92%
8.93%
4.46%

10.00%
18.00%
14.40%
11.52%
9.22%
7.37%
6.55%
6.55%
6.56%
6.55%
3.28%

5.00%
9.50%
8.55%
7.70%
6.93%
6.23%
5.90%
5.90%
5.91%
5.90%
5.91%
5.90%
5.91%
5.90%
5.91%
2.95%

100.00%

100.00%

100.00%

100.00%

100.00%

3.75%
7.22%
6.68%
6.18%
5.71%
5.29%
4.89%
4.52%
4.46%
4.46%
4.46%
4.46%
4.46%
4.46%
4.46%
4.46%
4.46%
4.46%
4.46%
4.46%
2.23%
100.00%

Source: IRS Publication 946, Table A-1.

Property class (yrs)

10.0

2013
$16.0
2014
$16.8
2015
$17.6
2016
$18.5
2017
$19.4
MACRS depreciation of capex

$1.6

$2.9
1.7

$2.3
3.0
1.8

$1.8
2.4
3.2
1.8

$1.6

$4.5

$7.1

$9.3

$1.5
1.9
2.5
3.3
1.9
$11.2

$0.8
13.9
$14.7

$2.4
13.0
$15.4

$4.2
12.1
$16.2

$6.0
11.1
$17.0

$7.8
10.0
$17.9

Tax Depreciation
Use MACRS depreciation of capex?
Tax depreciation of capex
( + ) Tax depreciation of existing fixed assets
Total tax depreciation expense

No

Page 12 of 20

Step 13
x

Income Statement
($ in millions)

Total revenue
COGS
Gross profit
SG&A
EBITDA
Depreciation
Amortization
Stock-based comp
EBIT
EBITA
Interest (income) / expense
Cash
Revolver interest
Revolver undrawn commitment fee
Senior credit facility
Subordinated note
Convertible bond
Interest (income) / expense
Equity income in affiliates
Other (income) / expense
Income before taxes
Provision for tax
GAAP net income
Net income attributable to noncontrolling interests
Preferred dividends
GAAP net income available to common
Capital expenditures

MRY
2012

2013

Fiscal Years Ending December 31,


2014
2015
2016

2017

$440.8
234.4
206.4
79.6
126.8
14.0
11.6
10.8
90.4
112.8

$462.8
246.1
216.7
83.6
133.1
14.7
11.6
11.3
95.5
118.4

$486.0
258.4
227.6
87.8
139.8
15.4
11.6
11.9
100.9
124.4

$562.6
299.2
263.4
101.6
161.8
17.9

13.8
130.2
144.0

$510.3
271.3
238.9
92.1
146.8
16.2
11.6
12.5
106.5
130.6

$535.8
284.9
250.9
96.8
154.1
17.0
2.7
13.1
121.3
137.1

NA
NA
NA
NA
NA
NA
19.0

71.4
28.4
43.0

$43.0

(0.4)
1.2
0.4

3.8
18.1
23.0

72.5
29.0
43.5

$43.5

(0.6)

0.5

3.8
18.9
22.6

78.3
31.3
47.0

$47.0

(0.8)

0.5

3.8
19.8
23.3

83.2
33.3
49.9

$49.9

(1.0)

0.5

3.8
20.7
24.0

97.2
38.9
58.3

$58.3

(1.1)

0.5

3.8
20.7
23.9

106.3
42.5
63.8

$63.8

$15.2

$16.0

$16.8

$17.6

$18.5

$19.4

Key Performance Metrics & Drivers


Sales growth

x
x
x
x
x
x
x

4.9%

5.0%

5.0%

5.0%

5.0%

5.0%

COGS / sales
SG&A / sales
Depreciation / sales
Amortization / sales
Stock-based comp / sales
Capex / sales

53.2%
18.1%
3.2%
2.6%
2.5%
3.4%

53.2%
18.1%
3.2%
2.5%
2.5%
3.4%

53.2%
18.1%
3.2%
2.4%
2.5%
3.4%

53.2%
18.1%
3.2%
2.3%
2.5%
3.4%

53.2%
18.1%
3.2%
0.5%
2.5%
3.4%

53.2%
18.1%
3.2%

2.5%
3.4%

Tax rate

39.8%

40.0%

40.0%

40.0%

40.0%

40.0%

Balance Sheet
Cash Flow Statement
Working Capital
Debt Schedule
Equity Investments
Depreciation Schedule
Tax Schedule
($ in millions)

Federal tax rate


State and local tax rate
Blended tax rate

MRY
2012

39.8%

2013

Fiscal Years Ending December 31,


2014
2015
2016

38.1%
3.0%
40.0%

38.1%
3.0%
40.0%

38.1%
3.0%
40.0%

38.1%
3.0%
40.0%

$133.1
(14.7)
(11.6)

(11.3)
(23.0)

72.5

$139.8
(15.4)
(11.6)

(11.9)
(22.6)

78.3

$146.8
(16.2)
(11.6)

(12.5)
(23.3)

83.2

$154.1
(17.0)
(2.7)

(13.1)
(24.0)

97.2

2017
38.1%
3.0%
40.0%

Cash Taxes & Net DTL


EBITDA
( ) Tax depreciation
( ) Tax amortization of intangible assets
( ) Tax amortization of tax-deductible goodwill
( ) Stock-based compensation
( + ) Interest income / (expense)
( + ) Distributed equity income in affiliates
( + ) Other income / (expense)
Total taxable income

$161.8
(17.9)

(13.8)
(23.9)

106.3
Page 13 of 20

Step 14
x
x
x
x
x
x
x
x

Income Statement
Balance Sheet
Cash Flow Statement
Working Capital
Debt Schedule
Equity Investments
Depreciation Schedule
Tax Schedule
($ in millions)

Federal tax rate


State and local tax rate
Blended tax rate

MRY
2012

Fiscal Years Ending December 31,


2014
2015
2016

2013

2017

38.1%
3.0%
40.0%

38.1%
3.0%
40.0%

38.1%
3.0%
40.0%

38.1%
3.0%
40.0%

38.1%
3.0%
40.0%

$133.1
(14.7)
(11.6)

(11.3)
(23.0)

72.5
(64.2)
8.3
(0.2)
$8.0

$139.8
(15.4)
(11.6)

(11.9)
(22.6)

78.3

78.3
(2.3)
$75.9

$146.8
(16.2)
(11.6)

(12.5)
(23.3)

83.2

83.2
(2.5)
$80.7

$154.1
(17.0)
(2.7)

(13.1)
(24.0)

97.2

97.2
(2.9)
$94.3

$161.8
(17.9)

(13.8)
(23.9)

106.3

106.3
(3.2)
$103.1

15.00

14.00

13.00

12.00

11.00

10.00

$64.2

$64.2

(64.2)

$25.7

$25.7
(25.7)

39.8%

Cash Taxes & Net DTL


EBITDA
( ) Tax depreciation
( ) Tax amortization of intangible assets
( ) Tax amortization of tax-deductible goodwill
( ) Stock-based compensation
( + ) Interest income / (expense)
( + ) Distributed equity income in affiliates
( + ) Other income / (expense)
Total taxable income
( ) NOL used
State and local taxable income
( ) State and local cash taxes
Federal taxable income
Acquired NOL Subject to Section 382
Annual Sec. 382 NOL deduction limit
Remaining NOL life (yrs)
Acquired NOL subject to Sec. 382
Beginning balance
( ) NOL used
( ) NOL expired
Ending balance
Unused limitation carryforward
Beginning balance
( + ) Carryforward created
( ) Carryforward used
Ending balance
Unencumbered NOL
Remaining NOL life (yrs)
Beginning balance
( + ) NOL created
( ) NOL used
( ) NOL expired
Ending balance
DTA attributable to NOL
Beginning balance
Increase / (decrease) in DTA attributable to NOL
Ending balance

Page 14 of 20

Step 15
x
x
x
x
x
x
x
x

Income Statement
Balance Sheet
Cash Flow Statement
Working Capital
Debt Schedule
Equity Investments
Depreciation Schedule
Tax Schedule
MRY
2012

($ in millions)

Federal tax rate


State and local tax rate
Blended tax rate

Fiscal Years Ending December 31,


2014
2015
2016

2013

2017

38.1%
3.0%
40.0%

38.1%
3.0%
40.0%

38.1%
3.0%
40.0%

38.1%
3.0%
40.0%

38.1%
3.0%
40.0%

$133.1
(14.7)
(11.6)

(11.3)
(23.0)

72.5
(64.2)
8.3
(0.2)
$8.0

$139.8
(15.4)
(11.6)

(11.9)
(22.6)

78.3

78.3
(2.3)
$75.9

$146.8
(16.2)
(11.6)

(12.5)
(23.3)

83.2

83.2
(2.5)
$80.7

$154.1
(17.0)
(2.7)

(13.1)
(24.0)

97.2

97.2
(2.9)
$94.3

$161.8
(17.9)

(13.8)
(23.9)

106.3

106.3
(3.2)
$103.1

$3.1
0.2
3.3

$29.0
2.3
31.3

$30.8
2.5
33.3

$36.0
2.9
38.9

$39.3
3.2
42.5

15.00

14.00

13.00

12.00

11.00

10.00

$64.2

$64.2

(64.2)

$25.7

$25.7
(25.7)

39.8%

Cash Taxes & Net DTL


EBITDA
( ) Tax depreciation
( ) Tax amortization of intangible assets
( ) Tax amortization of tax-deductible goodwill
( ) Stock-based compensation
( + ) Interest income / (expense)
( + ) Distributed equity income in affiliates
( + ) Other income / (expense)
Total taxable income
( ) NOL used
State and local taxable income
( ) State and local cash taxes
Federal taxable income
Federal cash taxes
( + ) State and local cash taxes
Total cash taxes payable
Acquired NOL Subject to Section 382
Annual Sec. 382 NOL deduction limit
Remaining NOL life (yrs)
Acquired NOL subject to Sec. 382
Beginning balance
( ) NOL used
( ) NOL expired
Ending balance
Unused limitation carryforward
Beginning balance
( + ) Carryforward created
( ) Carryforward used
Ending balance
Unencumbered NOL
Remaining NOL life (yrs)
Beginning balance
( + ) NOL created
( ) NOL used
( ) NOL expired
Ending balance
DTA attributable to NOL
Beginning balance
Increase / (decrease) in DTA attributable to NOL
Ending balance
Alternative Minimum Tax (AMT)
*** SOME OR ALL OF THIS SECTION MAY NOT APPLY OUTSIDE THE UNITED STATES ***
Corporate AMT tax rate
Maximum taxable income offset
Effective AMT tax rate

20.0%
90.0%
2.0%

Federal tax at statutory rate (post-NOL)


Alternative minimum tax (before credits)

$3.1
1.4

$29.0
1.5

$30.8
1.6

$36.0
1.9

$39.3
2.1

Tax payable before AMT credit used


( ) AMT tax credit used
Federal cash taxes
Effective federal cash tax rate

$3.1

$3.1
4.2%

$29.0

$29.0
38.1%

$30.8

$30.8
38.1%

$36.0

$36.0
38.1%

$39.3

$39.3
38.1%

AMT tax credit carryforward


AMT tax credit beginning balance
( + ) AMT tax credit generated
( ) AMT tax credit used
AMT tax credit ending balance

20.0%
90.0%
2.0%

20.0%
90.0%
2.0%

20.0%
90.0%
2.0%

20.0%
90.0%
2.0%

Page 15 of 20

Step 16
x
x

Income Statement
Balance Sheet
($ in millions)

MRY
2012

2013

Fiscal Years Ending December 31,


2014
2015
2016

2017

$157.1
136.4

8.8
8.2
310.6
44.0
(6.0)
38.0
61.1
37.5

14.3
$461.4

$239.1
143.3

9.3
8.6
400.2
60.0
(20.7)
39.2
61.1
25.9

14.3
$540.7

$314.6
150.4

9.7
9.1
483.8
76.7
(36.2)
40.6
61.1
14.3

14.3
$614.1

$393.9
157.9

10.2
9.5
571.6
94.3
(52.4)
41.9
61.1
2.7

14.3
$691.6

$463.3
165.8

10.7
10.0
649.9
112.8
(69.4)
43.4
61.1

14.3
$768.6

$535.8
174.1

11.3
10.5
731.7
132.2
(87.3)
44.9
61.1

14.3
$852.0

$20.7
15.4

2.9
20.0
36.2

95.2
15.0

45.5
190.0
250.5
(15.4)
17.9
348.2

113.3
$461.4

$21.7
16.1

3.1
21.0
38.0

99.9

45.5
199.0
244.5
10.3
17.9
372.7

168.1
$540.7

$22.8
17.0

3.2
22.1
39.9

104.9

45.5
208.5
254.0
10.3
17.9
387.1

227.0
$614.1

$23.9
17.8

3.4
23.2
41.9

110.2

45.5
218.4
263.9
10.3
17.9
402.3

289.4
$691.6

$25.1
18.7

3.6
24.3
44.0

115.7

45.5
218.4
263.9
10.3
17.9
407.8

360.9
$768.6

$26.4
19.6

3.7
25.5
46.2

121.5

45.5
218.4
263.9
10.3
17.9
413.5

438.5
$852.0

Assets
Cash and equivalents
Accounts receivable
Inventory
Deferred tax asset, current
Other current assets
Total current assets
PP&E, gross
( ) Accumulated depreciation
PP&E, net
Goodwill
Other intangible assets
Equity investments
Other assets
Total assets
Liabilities & Shareholders' Equity
Accounts payable
Accrued expenses
Client deposits
Income taxes payable
Deferred revenue
Other current liabilities
Current portion of long-term debt
Total current liabilities
Revolver
Senior credit facility
Subordinated note
Convertible bond
Total debt
Net deferred tax liability / (asset)
Other long-term liabilities
Total liabilities
Noncontrolling interests
Preferred stock
Common equity
Total liabilities & shareholders' equity
Check

x
x
x
x
x
x

Cash Flow Statement


Working Capital
Debt Schedule
Equity Investments
Depreciation Schedule
Tax Schedule
MRY
2012

($ in millions)

Federal tax rate


State and local tax rate
Blended tax rate

Fiscal Years Ending December 31,


2014
2015
2016

2013

39.8%

2017

38.1%
3.0%
40.0%

38.1%
3.0%
40.0%

38.1%
3.0%
40.0%

38.1%
3.0%
40.0%

38.1%
3.0%
40.0%

$133.1
(14.7)
(11.6)

(11.3)
(23.0)

72.5
(64.2)
8.3
(0.2)
$8.0

$139.8
(15.4)
(11.6)

(11.9)
(22.6)

78.3

78.3
(2.3)
$75.9

$146.8
(16.2)
(11.6)

(12.5)
(23.3)

83.2

83.2
(2.5)
$80.7

$154.1
(17.0)
(2.7)

(13.1)
(24.0)

97.3

97.3
(2.9)
$94.4

$161.8
(17.9)

(13.8)
(23.8)

106.3

106.3
(3.2)
$103.1

$3.1
0.2
3.3
25.7
$29.0

$29.0
2.3
31.3

$31.3

$30.8
2.5
33.3

$33.3

$36.0
2.9
38.9

$38.9

$39.3
3.2
42.5

$42.5

($15.4)
25.7
$10.3

$10.3

$10.3

$10.3

$10.3

$10.3

$10.3

$10.3

$10.3

Cash Taxes & Net DTL


EBITDA
( ) Tax depreciation
( ) Tax amortization of intangible assets
( ) Tax amortization of tax-deductible goodwill
( ) Stock-based compensation
( + ) Interest income / (expense)
( + ) Distributed equity income in affiliates
( + ) Other income / (expense)
Total taxable income
( ) NOL used
State and local taxable income
( ) State and local cash taxes
Federal taxable income
Federal cash taxes
( + ) State and local cash taxes
Total cash taxes payable
( + ) Deferred tax expense / (benefit)
Book tax expense
Net DTL beginning balance
Increase / (decrease) in net DTL
Net DTL ending balance

($15.4)

Acquired NOL Subject to Section 382


Annual Sec. 382 NOL deduction limit
Remaining NOL life (yrs)

Acquired NOL subject to Sec. 382


Beginning balance
( ) NOL used
( ) NOL expired
Ending balance

Unused limitation carryforward


Beginning balance
( + ) Carryforward created
( ) Carryforward used
Ending balance

15.00

14.00

13.00

12.00

11.00

10.00

$64.2

$64.2

(64.2)

$25.7

$25.7
(25.7)

Unencumbered NOL
Remaining NOL life (yrs)
Beginning balance
( + ) NOL created
( ) NOL used
( ) NOL expired
Ending balance
DTA attributable to NOL
Beginning balance
Increase / (decrease) in DTA attributable to NOL
Ending balance
Alternative Minimum Tax (AMT)
*** SOME OR ALL OF THIS SECTION MAY NOT APPLY OUTSIDE THE UNITED STATES ***
Corporate AMT tax rate
Maximum taxable income offset
Effective AMT tax rate

20.0%
90.0%
2.0%

Federal tax at statutory rate (post-NOL)


Alternative minimum tax (before credits)

$3.1
1.4

$29.0
1.5

$30.8
1.6

$36.0
1.9

$39.3
2.1

Tax payable before AMT credit used


( ) AMT tax credit used
Federal cash taxes
Effective federal cash tax rate

$3.1

$3.1
4.2%

$29.0

$29.0
38.1%

$30.8

$30.8
38.1%

$36.0

$36.0
38.1%

$39.3

$39.3
38.1%

AMT tax credit carryforward


AMT tax credit beginning balance
( + ) AMT tax credit generated
( ) AMT tax credit used
AMT tax credit ending balance

20.0%
90.0%
2.0%

20.0%
90.0%
2.0%

20.0%
90.0%
2.0%

20.0%
90.0%
2.0%

Page 16 of 20

Step 17
x
x
x
x
x
x
x
x
x

Income Statement
Balance Sheet
Cash Flow Statement
Working Capital
Debt Schedule
Equity Investments
Depreciation Schedule
Tax Schedule
Shares Outstanding
MRY
2012

($ in millions)

2013

Fiscal Years Ending December 31,


2014
2015
2016

2017

Stock Options
Current share price

$9.16
Options Outstanding
Number of
Average
Options
Strike

Tranche 1
Tranche 2
Tranche 3
Tranche 4
Tranche 5
Tranche 6
Tranche 7
Tranche 8
Tranche 9
Tranche 10
Total Treasury Method shares

0.402
0.120
0.466
0.300
0.520
0.422
0.375

$9.13
9.93
11.60
12.64
19.48
27.03
45.78

Number of
Options

Options Exercisable
Average
Treasury
Strike
Method

0.209
0.059
0.221
0.300
0.269
0.211
0.187

$9.04
10.03
11.53
12.69
19.54
27.06
45.75

0.003

0.003

Face value
Convertible bond
Preferred stock

$190.0

$199.0

$208.5

$218.4

$218.4

$218.4

Conversion price
Convertible bond
Preferred stock

$26.77

$26.77

$26.77

$26.77

$26.77

$26.77

Convertible shares
Convertible bond
Preferred stock

7.097

7.435

7.788

8.158

8.158

8.158

EPS if converted
Convertible bond
Preferred stock

$1.27
$1.22

$1.27
$1.23

$1.35
$1.33

$1.42
$1.41

$1.63
$1.65

$1.75
$1.81

Basic EPS

$1.22

$1.23

$1.33

$1.41

$1.65

$1.81

No
No

No
No

No
No

No
No

Yes
No

Yes
No

35.340
0.003

35.343

35.340
0.003

35.343

35.340
0.003

35.343

35.340
0.003

35.343

Convertible Securities

Is conversion dilutive?
Convertible bond
Preferred stock
Fully Diluted Shares Outstanding
Basic shares outstanding (BSO)
( + ) In-the-money Treasury Method option shares
( + ) Shares from Convertible bond
( + ) Shares from Preferred stock
Fully diluted shares outstanding (FDSO)

35.340
35.340
0.003
0.003
8.158
8.158

43.500
43.500
Page 17 of 20

Step 18
x

Income Statement
($ in millions)

Total revenue
COGS
Gross profit
SG&A
EBITDA
Depreciation
Amortization
Stock-based comp
EBIT
EBITA
Interest (income) / expense
Cash
Revolver interest
Revolver undrawn commitment fee
Senior credit facility
Subordinated note
Convertible bond
Interest (income) / expense
Equity income in affiliates
Other (income) / expense
Income before taxes
Provision for tax
GAAP net income
Net income attributable to noncontrolling interests
Preferred dividends
GAAP net income available to common
Capital expenditures
Common dividend per share

2013

Fiscal Years Ending December 31,


2014
2015
2016

2017

$462.8
246.1
216.7
83.6
133.1
14.7
11.6
11.3
95.5
118.4

$486.0
258.4
227.6
87.8
139.8
15.4
11.6
11.9
100.9
124.4

$510.3
271.3
238.9
92.1
146.8
16.2
11.6
12.5
106.5
130.6

$535.8
284.9
250.9
96.8
154.1
17.0
2.7
13.1
121.3
137.1

$562.6
299.2
263.4
101.6
161.8
17.9

13.8
130.2
144.0

NA
NA
NA
NA
NA
NA
19.0

71.4
28.4
43.0

$43.0

(0.4)
1.2
0.4

3.8
18.1
23.0

72.5
29.0
43.5

$43.5

(0.6)

0.5

3.8
18.9
22.6

78.3
31.3
47.0

$47.0

(0.8)

0.5

3.8
19.8
23.3

83.2
33.3
49.9

$49.9

(1.0)

0.5

3.8
20.7
24.0

97.3
38.9
58.4

$58.4

(1.2)

0.5

3.8
20.7
23.8

106.3
42.5
63.8

$63.8

$15.2
$0.01

$16.0
$0.01

$16.8
$0.01

$17.6
$0.01

$18.5
$0.01

$19.4
$0.01

MRY
2012
$440.8
234.4
206.4
79.6
126.8
14.0
11.6
10.8
90.4
112.8

Key Performance Metrics & Drivers


Sales growth

4.9%

5.0%

5.0%

5.0%

5.0%

5.0%

COGS / sales
SG&A / sales
Depreciation / sales
Amortization / sales
Stock-based comp / sales
Capex / sales

53.2%
18.1%
3.2%
2.6%
2.5%
3.4%

53.2%
18.1%
3.2%
2.5%
2.5%
3.4%

53.2%
18.1%
3.2%
2.4%
2.5%
3.4%

53.2%
18.1%
3.2%
2.3%
2.5%
3.4%

53.2%
18.1%
3.2%
0.5%
2.5%
3.4%

53.2%
18.1%
3.2%

2.5%
3.4%

Tax rate

39.8%

40.0%

40.0%

40.0%

40.0%

40.0%

Balance Sheet
($ in millions)

MRY
2012

2013

Fiscal Years Ending December 31,


2014
2015
2016

2017

$157.1
136.4

8.8
8.2
310.6
44.0
(6.0)
38.0
61.1
37.5

14.3
$461.4

$238.7
143.3

9.3
8.6
399.9
60.0
(20.7)
39.2
61.1
25.9

14.3
$540.4

$313.9
150.4

9.7
9.1
483.1
76.7
(36.2)
40.6
61.1
14.3

14.3
$613.4

$392.9
157.9

10.2
9.5
570.6
94.3
(52.4)
41.9
61.1
2.7

14.3
$690.6

$461.9
165.8

10.7
10.0
648.4
112.8
(69.4)
43.4
61.1

14.3
$767.2

$534.0
174.1

11.3
10.5
729.9
132.2
(87.3)
44.9
61.1

14.3
$850.2

$20.7
15.4

2.9
20.0
36.2

95.2
15.0

45.5
190.0
250.5
(15.4)
17.9
348.2

113.3
$461.4

$21.7
16.1

3.1
21.0
38.0

99.9

45.5
199.0
244.5
10.3
17.9
372.7

167.7
$540.4

$22.8
17.0

3.2
22.1
39.9

104.9

45.5
208.5
254.0
10.3
17.9
387.1

226.2
$613.4

$23.9
17.8

3.4
23.2
41.9

110.2

45.5
218.4
263.9
10.3
17.9
402.3

288.3
$690.6

$25.1
18.7

3.6
24.3
44.0

115.7

45.5
218.4
263.9
10.3
17.9
407.8

359.5
$767.2

$26.4
19.6

3.7
25.5
46.2

121.5

45.5
218.4
263.9
10.3
17.9
413.5

436.7
$850.2

Assets
Cash and equivalents
Accounts receivable
Inventory
Deferred tax asset, current
Other current assets
Total current assets
PP&E, gross
( ) Accumulated depreciation
PP&E, net
Goodwill
Other intangible assets
Equity investments
Other assets
Total assets
Liabilities & Shareholders' Equity
Accounts payable
Accrued expenses
Client deposits
Income taxes payable
Deferred revenue
Other current liabilities
Current portion of long-term debt
Total current liabilities
Revolver
Senior credit facility
Subordinated note
Convertible bond
Total debt
Net deferred tax liability / (asset)
Other long-term liabilities
Total liabilities
Noncontrolling interests
Preferred stock
Common equity
Total liabilities & shareholders' equity
Check

Cash Flow Statement


($ in millions)

MRY
2012

2013

Fiscal Years Ending December 31,


2014
2015
2016

2017

Operating Activities
Net income
Depreciation
Amortization of intangibles
Stock-based compensation
Equity income in affiliates
Cash dividends from equity investments
Non-cash noncontrolling (minority) interest
PIK accrual Convertible bond
PIK accrual Preferred stock
Income statement adjustments
(Increase) / decrease in working capital
Increase / (decrease) in net DTL
(Increase) / decrease in other assets
Increase / (decrease) in other liabilities
Balance sheet adjustments
Cash flow from operating activities

$43.5
14.7
11.6
11.3

9.0

46.7
(2.9)
25.7

22.8
$112.9

$47.0
15.4
11.6
11.9

9.5

48.4
(3.1)

(3.1)
$92.3

$49.9
16.2
11.6
12.5

9.9

50.2
(3.2)

(3.2)
$96.9

$58.4
17.0
2.7
13.1

32.8
(3.4)

(3.4)
$87.8

$63.8
17.9

13.8

31.7
(3.5)

(3.5)
$91.9

($16.0)

($16.8)

($17.6)

($18.5)

($19.4)

($15.0)

(0.4)
($15.4)

(0.4)
($0.4)

(0.4)
($0.4)

(0.4)
($0.4)

(0.4)
($0.4)

$81.6

$75.2

$79.0

$69.0

$72.2

Investing Activities
Cash flow from investing activities
Financing Activities
Revolver
Senior credit facility
Subordinated note
Convertible bond
Preferred stock
Common dividend
Cash flow from financing activities
Change in cash

x
x
x
x
x
x

Working Capital
Debt Schedule
Equity Investments
Depreciation Schedule
Tax Schedule
Shares Outstanding
Page 18 of 20

Step 19
x

Income Statement
($ in millions)

Total revenue
COGS
Gross profit
SG&A
EBITDA
Depreciation
Amortization
Stock-based comp
EBIT
EBITA
Interest (income) / expense
Cash
Revolver interest
Revolver undrawn commitment fee
Senior credit facility
Subordinated note
Convertible bond
Interest (income) / expense
Equity income in affiliates
Other (income) / expense
Income before taxes
Provision for tax
GAAP net income
Net income attributable to noncontrolling interests
Preferred dividends
GAAP net income available to common

MRY
2012

2013

Fiscal Years Ending December 31,


2014
2015
2016

2017

$440.8
234.4
206.4
79.6
126.8
14.0
11.6
10.8
90.4
112.8

$462.8
246.1
216.7
83.6
133.1
14.7
11.6
11.3
95.5
118.4

$486.0
258.4
227.6
87.8
139.8
15.4
11.6
11.9
100.9
124.4

$562.6
299.2
263.4
101.6
161.8
17.9

13.8
130.2
144.0

$510.3
271.3
238.9
92.1
146.8
16.2
11.6
12.5
106.5
130.6

$535.8
284.9
250.9
96.8
154.1
17.0
2.7
13.1
121.3
137.1

NA
NA
NA
NA
NA
NA
19.0

71.4
28.4
43.0

$43.0

(0.4)
1.2
0.4

3.8
18.1
23.0

72.5
29.0
43.5

$43.5

(0.6)

0.5

3.8
18.9
22.6

78.3
31.3
47.0

$47.0

(0.8)

0.5

3.8
19.8
23.3

83.2
33.3
49.9

$49.9

(1.0)

0.5

3.8
20.7
24.0

97.3
38.9
58.4

$58.4

(1.2)

0.5

3.8
20.7
23.8

106.3
42.5
63.8

$63.8

GAAP to cash reconciliation


Amortization
Stock-based comp
One-time charges
Cash net income available to common

$7.0
6.5

$56.5

$7.0
6.8

$57.2

$7.0
7.1

$61.1

$7.0
7.5

$64.4

$1.6
7.9

$67.9

8.3

$72.1

GAAP diluted EPS


Cash diluted EPS

$1.22
$1.60

$1.23
$1.62

$1.33
$1.73

$1.41
$1.82

$1.34
$1.56

$1.47
$1.66

Capital expenditures
Common dividend per share

$15.2
$0.01

$16.0
$0.01

$16.8
$0.01

$17.6
$0.01

$18.5
$0.01

$19.4
$0.01

Key Performance Metrics & Drivers


Sales growth
GAAP earnings growth
Cash earnings growth

x
x
x
x
x
x
x
x

4.9%
NA
NA

5.0%
1.1%
1.3%

5.0%
8.0%
6.7%

5.0%
6.3%
5.4%

5.0%
16.9%
5.4%

5.0%
9.3%
6.2%

COGS / sales
SG&A / sales
Depreciation / sales
Amortization / sales
Stock-based comp / sales
Capex / sales

53.2%
18.1%
3.2%
2.6%
2.5%
3.4%

53.2%
18.1%
3.2%
2.5%
2.5%
3.4%

53.2%
18.1%
3.2%
2.4%
2.5%
3.4%

53.2%
18.1%
3.2%
2.3%
2.5%
3.4%

53.2%
18.1%
3.2%
0.5%
2.5%
3.4%

53.2%
18.1%
3.2%

2.5%
3.4%

Gross margin
EBITDA margin
EBIT margin
EBITA margin
GAAP net margin
Cash net margin

46.8%
28.8%
20.5%
25.6%
9.8%
12.8%

46.8%
28.8%
20.6%
25.6%
9.4%
12.4%

46.8%
28.8%
20.8%
25.6%
9.7%
12.6%

46.8%
28.8%
20.9%
25.6%
9.8%
12.6%

46.8%
28.8%
22.6%
25.6%
10.9%
12.7%

46.8%
28.8%
23.1%
25.6%
11.3%
12.8%

ROIC
ROE
ROA

17.0%
38.0%
9.3%

16.1%
25.9%
8.0%

14.5%
20.8%
7.7%

13.3%
17.3%
7.2%

13.2%
16.2%
7.6%

12.5%
14.6%
7.5%

Tax rate

39.8%

40.0%

40.0%

40.0%

40.0%

40.0%

Balance Sheet
Cash Flow Statement
Working Capital
Debt Schedule
Equity Investments
Depreciation Schedule
Tax Schedule
Shares Outstanding
Page 19 of 20

Step 20
x
x
x
x
x
x
x
x
x
x

Income Statement
Balance Sheet
Cash Flow Statement
Working Capital
Debt Schedule
Equity Investments
Depreciation Schedule
Tax Schedule
Shares Outstanding
Summary Credit Metrics
($ in millions)

MRY
2012

2013

Fiscal Years Ending December 31,


2014
2015
2016

2017

Capitalization
Total debt
Net debt
Senior debt
Preferred stock
Total capitalization

244.5
5.8

412.2

254.0
(59.9)

480.2

263.9
(129.0)

552.2

263.9
(198.0)

623.3

263.9
(270.1)

700.6

$1.6
14.4
23.4
23.4

$0.5
13.7
23.2
23.2

$0.5
14.2
24.1
24.1

$0.5
25.0
25.0
25.0

$0.5
25.0
25.0
25.0

EBITDA
EBITDA / senior interest expense
EBITDA / cash interest expense
EBITDA / total interest expense
EBITDA / fixed charges

$133.1
82.0x
9.2x
5.7x
5.7x

$139.8
279.6x
10.2x
6.0x
6.0x

$146.8
293.6x
10.4x
6.1x
6.1x

$154.1
308.3x
6.2x
6.2x
6.2x

$161.8
323.7x
6.5x
6.5x
6.5x

EBITDA capex
(EBITDA capex) / senior interest expense
(EBITDA capex) / cash interest expense
(EBITDA capex) / total interest expense
(EBITDA capex) / fixed charges

$117.2
72.2x
8.1x
5.0x
5.0x

$123.0
246.1x
9.0x
5.3x
5.3x

$129.2
258.4x
9.1x
5.4x
5.4x

$135.7
271.3x
5.4x
5.4x
5.4x

$142.4
284.9x
5.7x
5.7x
5.7x

EBITDA capex WC
(EBITDA capex WC) / senior interest expense
(EBITDA capex WC) / cash interest expense
(EBITDA capex WC) / total interest expense
(EBITDA capex WC) / fixed charges

$114.3
70.4x
7.9x
4.9x
4.9x

$120.0
240.0x
8.8x
5.2x
5.2x

$126.0
252.0x
8.9x
5.2x
5.2x

$132.3
264.5x
5.3x
5.3x
5.3x

$138.9
277.8x
5.6x
5.6x
5.6x

Interest Expense
Senior interest expense
Cash interest expense
Total interest expense
Fixed charges (total interest & preferred dividends)
Coverage

Leverage
Senior debt / total capitalization
Net debt / total capitalization

1.41%

NM

Senior debt / EBITDA


Total debt / EBITDA
Net debt / EBITDA
Net debt + preferred / EBITDA

1.84x
0.04x
0.04x

1.82x
NM
NM

NM

NM

1.80x
1.71x
NM
NM
NM
NM
Page 20 of 20

NM

1.63x
NM
NM