mercury athletic (student templates) final
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TN Exhibit 3
Mercury Action Athletic Cash Flow Forecast ($ in thousands)
Operating Results:
200 200! 200" 20#0 20##
e%enue &"'32" &!"'02! 32'#3 0'3#" "'#
Less: Divisional Operating Expenses 423,836 427,333 465,110 498,535 522,522
Less: Corporate Overea! 8,487 8,659 9,422 10,098 10,583
E*T &'00+ 3'03+ '+0 +#'+!+ +&'+#2
Less: "axes #18,802$ #21,214$ #23,042$ #24,675$ #25,845$
N,-AT 2!'203 3#'!22 3&'+3 3'0#2 3!'+
%l&s: Depre'iation 9,587 9,781 10,643 11,406 11,954
Less: Canges in (or)ing Capital #4,568$ #2,649$ #9,805$ #8,687$ #6,233$
Less: Capital Expen!it&res #11,983$ #12,226$ #13,303$ #14,258$ #14,943$
Less: Cange in Oter *ssets
%l&s: Canges in Oter Lia+ilities
.nle%ered Free Cash Flow (FCF) 2#'23" 2+'2 22'0" 2'&3 2"'&
Net /orin1 Caital Calculations
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TN Exhibit & Mercury /ACC Esti4ation
Calculation of asset betas from publicly-traded comparables*
E5uity Net E5uity Asset
Casual & Athletic Shoe Companies: Maret 6alue 7ebt 78E eta eta Assumptions:
D- .oe Co/pan 420,098 125,442 299 268 206 arginal "ax ate 400
eneral .oe Corp 533,463 171,835 322 192 145 De+t -eta 000
insle Co<er %ro!&'ts 165,560 82,236 497 112 075
i'tor *tleti' 35,303,250 7,653,207 217 097 080 is)ree ate 493
.&rsi!e oot;ear 570,684 195,540 343 213 159 % 500
*lpine Co/pan 1,056,033 300,550 285 127 099
"e/pleton *tleti' 397,709 169,579 426 098 069 Cost o De+t 600
A%era1e 5,492,400 1,242,627 341 158 119
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TN Exhibit 7CF 6aluation' N-6' and -eretuity?based T6 ($ in thousands)
Unlevered Free Cash Flow: 200+ (t@0) 200 200! 200" 20#0 20## *ss&/e:
N,-AT 2'""! 2!'203 3#'!22 3&'+3 3'0#2 3!'+ (*CC 1061
%l&s: Depre'iation 9,587 9,781 10,643 11,406 11,954 ro;t rate 278
Less: Canges in (or)ing Capital #4,568$ #2,649$ #9,805$ #8,687$ #6,233$
Less: Capital Expen!it&res #11,983$ #12,226$ #13,303$ #14,258$ #14,943$
.nle%ered Free Cash Flow 2#'23" 2+'2 22'0" 2'&3 2"'&
% a'tor 0904 0817 0739 0668 0604
-6 FCF #"'20# 2#'!&+ #+'32" #'0#! #'!&
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MEC. ATBET*C Ter4inal 6alue Drowt
%ro=e't: EC@A *"BLE"C
*nalsis: "er/inal al&e ro;t Esti/ates
Drat: ooter: Barvar! -&siness %&+lising
TN Table # on1?Ter4 Drowth ate Calculation
1ong/erm 3rowth Rate:
20##
O%*" 38,767
nveste! Capital #1$ 331,381 E>&als "otal *ssets #Exi+it 7$
,C ##:; E>&als O%*" !ivi!e! + nveste! Capital
et einvest/ent 9,222 E>&als Capex (C Depre'iation
O%*" 38,767
ein%est4ent ate 23:!; E>&als et einvest/ent !ivi!e! + O%*"
Est: on1?ter4 Drowth ate 2:!2"; E>&als OC ti/es einvest/ent ate
#1$ -ase! on 2011 net operating assets
Ac4uisition Cost +stimates
5rice to +arnings 6ultiple
-8E Multile !:+
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8arvard -usiness 5u7lishing