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  • AirThread SecBC Group9

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    Vishal Bhanushali
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    This document shows projected revenue, expenses, capital expenditures, and cash flows for a company from 2008-2012. Service revenue is projected to steadily increase each year, while equipment revenue increases at a slower rate. Operating expenses also rise annually. The company is expected to generate positive unlevered free cash flow each year. Key metrics such as EBITDA, EBIT, net income, and working capital are also forecasted to grow during this period.

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    Air Thread Solution

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    AirThread_SecBC_Group9

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    This document shows projected revenue, expenses, capital expenditures, and cash flows for a company from 2008-2012. Service revenue is projected to steadily increase each year, while equipment revenue increases at a slower rate. Operating expenses also rise annually. The company is expected to generate positive unlevered free cash flow each year. Key metrics such as EBITDA, EBIT, net income, and working capital are also forecasted to grow during this period.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    25 views4 pages

    AirThread SecBC Group9

    Uploaded by

    Vishal Bhanushali
    This document shows projected revenue, expenses, capital expenditures, and cash flows for a company from 2008-2012. Service revenue is projected to steadily increase each year, while equipment revenue increases at a slower rate. Operating expenses also rise annually. The company is expected to generate positive unlevered free cash flow each year. Key metrics such as EBITDA, EBIT, net income, and working capital are also forecasted to grow during this period.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 4

    Revenue Projections: 2008 2009 2010 2011 2012

    Service Revenue 4,194.3 4,781.5 5,379.2 5,917.2 6,331.4


    Equipment Revenue 314.8 358.8 403.7 444.1 475.2
    Operating Expenses:
    System Operating Expenses 838.9 956.3 1,075.8 1,183.4 1,266.3
    Cost of Equipment Sold 755.5 861.2 968.9 1,065.8 1,140.4
    Selling, General & Administrative 1,803.6 2,056.2 2,313.2 2,544.5 2,722.6
    Depreciation & Amortization 705.2 804.0 867.4 922.4 952.9
    Tax Rate 40.0% 40.0% 40.0% 40.0% 40.0%
    Working Capital Assumptions (1):
    Accounts Receivable 41.67x 41.67x 41.67x 41.67x 41.67x
    Days Sales Equip. Rev. 154.36x 154.36x 154.36x 154.36x 154.36x
    Prepaid Expenses 1.38% 1.38% 1.38% 1.38% 1.38%
    Accounts Payable 35.54x 35.54x 35.54x 35.54x 35.54x
    Deferred Serv. Revenue 14.01x 14.01x 14.01x 14.01x 14.01x
    Accrued Liabilities 6.85x 6.85x 6.85x 6.85x 6.85x

    Capital Expenditures (2):


    Capital Expenditures 631.3 719.7 867.4 970.1 1,055.0

    522 595 669 736 788


    135 154 173 190 204

    EBIDTA 1,111.14 1,266.70 1,425.04 1,567.54 1,677.27


    Dep and amortization 705.2 804.0 867.4 922.4 952.9 from exhibit 5 working capi
    EBIT 405.91 462.74 557.60 645.16 724.36 115
    tax rate 40.0% 40.0% 40.0% 40.0% 40.0%
    EBIT(1-t) 243.5466490929 277.6432 334.5593 387.0989 434.6153

    Accounts Receivable 521.8951262775 594.9604 669.3305 736.2635 787.802


    Days Sales Equip. Rev. 134.967917493 153.8634 173.0964 190.406 203.7344
    Prepaid Expenses 46.9148279087 53.4829 60.16827 66.18509 70.81805
    Accounts Payable 335.4213192245 382.3803 430.1778 473.1956 506.3193
    Deferred Serv. Revenue 163.2542473617 186.1098 209.3736 230.3109 246.4327
    Accrued Liabilities 64.6090398745 73.65431 82.86109 91.1472 97.52751

    Working capital 140.4932652186 160.1623 180.1826 198.2009 212.0749


    Change in WC 25.4932652186 19.66906 20.02029 18.01826 13.87406
    Capital Expenditures 631.3 719.7 867.4 970.1 1,055.0
    Unleavered FCF 292.01 342.28 314.54 321.37 318.64
    PV found by discounting at 8.35% 269.50 291.5594 247.2793 233.1802 213.3835 1,254.91
    Interest Expense 199 183 166 148 128
    Tax sheild 79.6 73.2 66.4 59.2 51.2
    PV of tax sheild @ 5.5% 75.4502369668 65.76672 56.54715 47.78723 39.17488 284.7262

    Total Value 1,539.63

    Net Reinvestment 116

    Growthrate 2.87
    from exhibit 5 working capital of 2007 is

    discount rate of 8.35 from exhibit 7

    0.922935
    0.851809
    0.786164
    0.725578
    0.669662

    Interest Expense
    199.000

    r= 7.52

    growth ra Reinvestment Rate*ROIC


    Capex+Change in WC-Dep/(EBIT)*EBIT(1-t)/(d+e)

    1068.511
    Cash and cash equivalents of 2008 2009 2010 2011 2012
    ending balance of 2007+fcf of 08-int-principal=interest tax sheild
    86.5 14 -97 -207 -2462
    PPE
    PPE2007+CAPEX08-DEP08

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