08 09 10 11 12

Revenue 4,194 4,782 5,379 5,917 6,331

Sales of equipment 315 359 404 444 475
Total revenue 4,509 5,140 5,783 6,361 6,807
System Operating Expenses 839 956 1,076 1,183 1,266
Cost of Equipment Sold 755 861 969 1,066 1,140
Selling, General & Administrative1,804 2,056 2,313 2,544 2,723
EBITDA 1,111 1,267 1,425 1,568 1,677
Depreciation & Amortization 705 804 867 922 953
EBIT 406 463 558 645 724
Tax Rate 0 0 0 0 0
Earnings after tax 244 278 335 387 435
Unlevered FCF 260 338 310 318 316
PV of FCF 243 293 250 239 222

08 09 10 11 12
PV of FCF 243 293 250 239 222
Tax Shield 80 74 67 60 51
PV of tax shield 75 65 55 46 36
Terminal value @ 2012 7,400
PV of TV 5,276
Equity earning and value of
affiliates 1,277
Value of Airthread 6,553

08 09 10 11 12
Revenue 4,194 4,782 5,379 5,917 6,331
Sales of equipment 315 359 404 444 475
Synergy 157 269 387 569 704
Total revenue 4,666 5,409 6,170 6,930 7,511
System Operating Expenses 839 956 1,076 1,183 1,266
Blckhaul Synergy 0 14 26 52 76
Cost of Equipment Sold 755 861 969 1,066 1,140
Selling, General & Administrative1,866 2,163 2,468 2,772 3,004
EBITDA 1,206 1,442 1,683 1,961 2,176
Depreciation & Amortization 730 846 925 1,005 1,051
EBIT 476 596 758 956 1,125
Int. Exp. 200 183 165 148 129
EBT 276 413 593 808 996
Tax Rate 0 0 0 0 0
Earnings after tax 165 248 356 485 598
Unlevered FCF 318 451 480 572 643
PV of FCF 297 394 392 436 458
1.07 394
 WC 07 08 09 10 11 12
A/R 435 522 595 669 736 788
Days sales 101 135 154 173 190 204
Prepaid Expense 42 48 55 62 69 75
A/P 260 302 356 411 471 518
Deferred service rev 145 163 186 209 230 246
Accr. Liability 60 58 69 79 90 99
NWC 115 180 213 246 282 310

08 09 10 11 12
PV of FCF 296 391 387 430 450
Tax Shield 80 74 67 60 51
PV of tax shield 75 65 55 46 36
Terminal value @ 2012 15,000
PV of TV 10,695
Equity earning and value of
affiliates 1,277
Value of Airthread 11,972

Marginal Tax Rate 40%

Debt Beta 0
Market Risk Premium5.00%
Risk Free Rate 4.25% 4.25%
Cost of debt 5.50%

08 09 10 11 12
Int. Exp/year 200 183 166 148 129
Princ. Pay/year 290 306 324 342 2,496
After Tax IE/year 120 110 100 89 77
Tax Shield 80 74 67 60 51
PV of tax shield 76 66 56 47 40