LBO Model Template - PE Course (Spring 08)

INDUSTRIAL LBO MODEL Operating Case: Offering Memo Case Capital Structure: Case 2 - Proposal from Bank A

TOTAL SOURCES ($ in millions, except per share amounts)

Amount

Excess Cash of Company Revolver Debt Term Loan A Term Loan B Senior Sub Notes PIK Sub Notes Total Debt Preferred Rollover Equity Sponsor Common Equity Total Equity Total Sources

% of Total Capital

$0.0 0.0 0.0 654.0 150.0 0.0 804.0 0.0 0.0 201.0 201.0 1,005.0

0.0% 0.0% 0.0% 65.1% 14.9% 0.0% 80.0% 0.0% 0.0% 20.0% 20.0% 100.0%

Int. / Div. Rate

-7.50% 8.50% 8.50% 8.75% 0.00% -9.00% -----

2007 LTM 12/31/07 EBITDA EBITDA Cum. Multiple Cum. Multiple

-0.00x 0.00x 4.15x 5.10x 5.10x 5.10x 5.10x 5.10x 6.38x 6.38x 6.38x

-0.00x 0.00x 3.93x 4.84x 4.84x 4.84x 4.84x 4.84x 6.05x 6.05x 6.05x

TOTAL USES

TRANSACTION SUMMARY

($ in millions, except per share amounts)


Equity Purchase Price Rollover Equity Less: Cash Plus: Existing Debt Refinanced Plus: Existing Preferred Refinanced Plus: Prepayment Penalties Transaction Enterprise Value Bank Debt Fees (1.8%) Bond Fees (3.2%) Other Transaction Expenses Total Transaction Fees Excess Cash for WC Total Uses

OPERATING SUMMARY ($ in millions, except per share amounts)

Purch. Price Per Share % Premium to Current 338(h)(10) Election? Assumed Exit Date Base Exit Multiple of EBITDA Sponsor Equity Ownership Management Carry (% of Profits) Warrants to Mezz. Holders Free Warrants?

VALUATION MULTIPLES (including fees) ($ in millions, except per share amounts)

Pro Forma 2007

Revenue % Growth Gross Profit % Margin EBITDA % Margin % Growth

$595.0 0.0 (5.0) 410.0 0.0 0.0 $1,000.0 0.0 0.0 5.0 $5.0 0.0 $1,005.0

LTM 12/31/2007

2008

Projected Fiscal Year Ending December 31, 2009 2010 2011

2012

Data LTM 12/31/07

2007

$900.0 NA $315.0 35.0% $157.5 17.5% NA

$950.0 -$332.5 35.0% $166.3 17.5% 5.6%

$1,000.0 11.1% $350.0 35.0% $175.0 17.5% 11.1%

$1,100.0 10.0% $385.0 35.0% $192.5 17.5% 10.0%

$1,210.0 10.0% $423.5 35.0% $211.8 17.5% 10.0%

$1,331.0 10.0% $465.9 35.0% $232.9 17.5% 10.0%

$1,370.9 3.0% $479.8 35.0% $239.9 17.5% 3.0%

$27.0 $27.0

$28.5 $28.5

$30.0 $30.0

$33.0 $33.0

$36.3 $36.3

$39.9 $39.9

$39.9 $39.9

Cash Interest Total Interest

69.0 69.0

69.0 69.0

69.0 69.0

65.5 65.5

61.1 61.1

55.7 55.7

49.0 49.0


Total Interest + Pref. Divs.

69.0

69.0

69.0

65.5

61.1

55.7

49.0

Less: Net Debt Transaction Equity Value LTM EBITDA Implied Purch. Price EBITDA Multiple

Total Capex (Excl. Growth) Total Capex (Incl. Growth)

2008

2007

Multiple LTM 12/31/07

TEV /

EBITDA EBITDA - Capex EBIT

$157.5 130.5 130.5

$166.3 137.8 137.8

$175.0 145.0 145.0

6.4x 7.7x 7.7x

6.0x 7.3x 7.3x

$38.1

$38.1

$47.1

5.3x

5.3x

Eq. Value /

PF Earnings

Note: TEV is defined as total uses less cash. VARIANCE ANALYSIS OF SPONSOR RETURNS - 5 YEAR EXIT

CREDIT & LEVERAGE STATS

Pro Forma


2007

Cash Bank Debt Total Debt Total Debt + Preferred Cum. Debt Paid Down % of Bank Debt % of Total Debt

LTM 12/31/2007

2008


Transaction Enterprise Value (before fees) $950 $1,000

405.0 $545.0 166.3 5.7x

405.0 $595.0 166.3 6.0x

$191

$201

2012

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

654.0 804.0 804.0 ----

654.0 804.0 804.0 ----

613.0 763.0 763.0 41.0 6.3% 5.1%

560.9 710.9 710.9 93.1 14.2% 11.6%

496.7 646.7 646.7 157.3 24.1% 19.6%

418.9 568.9 568.9 235.1 35.9% 29.2%

327.8 477.8 477.8 326.2 49.9% 40.6%

EBITDA / Cash Interest Exp. EBITDA / Total Interest Exp. EBITDA - Capex / Cash Int. Exp. EBITDA - Capex / Total Int. Exp.

2.3x 2.3 1.9 1.9

2.4x 2.4 2.0 2.0

2.5x 2.5 2.1 2.1

2.9x 2.9 2.4 2.4

3.5x 3.5 2.9 2.9

4.2x 4.2 3.5 3.5

4.9x 4.9 4.1 4.1

Total Debt / EBITDA Total Debt + Preferred / EBITDA Net Debt / EBITDA

5.1 5.1 5.1

4.8 4.8 4.8

4.4 4.4 4.4

3.7 3.7 3.7

3.1 3.1 3.1

2.4 2.4 2.4

2.0 2.0 2.0

Common Equity Investment Returns to Sponsor (EBITDA Multiple):

41.1% LTM EBITDA Exit Multiple

5.5x 6.0x 6.5x 7.0x 7.5x

Returns to Sponsor (Earnings Multiple):

46.3% Fwd Earnings Exit Multiple

9.0x 10.0x 11.0x 12.0x 13.0x

Transaction Enterprise Value $950 $1,000

31.6% 35.1% 38.2% 41.1% 43.8%

31.6% 35.1% 38.2% 41.1% 43.8%

Transaction Enterprise Value $950 $1,000

34.1% 36.9% 39.5% 41.9% 44.1%

34.1% 36.9% 39.5% 41.9% 44.1%

05/29/2011 - 21:18:14 Page 1


CLOSING BALANCE SHEET ($ in millions, except per share amounts)

DETERMINATION OF GOODWILL Estimated 12/31/07 (1)

Debit Adjustment

Credit Adjustment

Pro Forma

Assets


Goodwill Calculation

Cash & Equivalents Accounts Receivable Inventory Other Current Assets Total Current Assets

$5.0 100.0 100.0 5.0 210.0

$0.0 0.0 0.0 0.0 0.0

$5.0 0.0 0.0 0.0 5.0

$0.0 100.0 100.0 5.0 205.0

Target Book Equity Existing Net Goodwill Tangible Book Value

$55.0 0.0 55.0

Equity Purchase Price

600.0

Gross PP&E Less: Accumulated Depreciation Net PP&E

500.0 100.0 400.0

0.0 0.0 0.0

0.0 0.0 0.0

500.0 100.0 400.0

Plus: Prepayment Penalties Total Equity Purchase Price Less: Tangible Book Value

0.0 600.0 55.0

0.0 0.0 5.0 5.0 0.0 $620.0

545.0 0.0 0.0 0.0 0.0 $545.0

0.0 0.0 0.0 0.0 0.0 $5.0

545.0 0.0 5.0 5.0 0.0 $1,160.0

Accounts Payable Other Current Liabilities Total Current Liabilities Revolver Debt Term Loan A Term Loan B Senior Sub Notes PIK Sub Notes

$100.0 50.0 150.0 10.0 400.0 0.0 0.0 0.0

$0.0 0.0 0.0 10.0 400.0 0.0 0.0 0.0

$0.0 0.0 0.0 0.0 0.0 654.0 150.0 0.0

$100.0 50.0 150.0 0.0 0.0 654.0 150.0 0.0

Total Long Term Debt Deferred Tax Liability Other LT Liabilities

410.0 0.0 5.0

410.0 0.0 0.0

804.0 0.0 0.0

804.0 0.0 5.0

$565.0 0.0 0.0 55.0 $55.0 $620.0 Check

$410.0 0.0 0.0 55.0 $55.0 $465.0

$804.0 0.0 0.0 201.0 $201.0 $1,005.0

$959.0 0.0 0.0 201.0 $201.0 $1,160.0 Check

Net Goodwill Net Intangibles Deferred Tax Asset Other Assets Capitalized Financing Fees Total Assets

Excess of Purchase Price over Book Value

545.0

Allocation of Excess

Capitalized Financing Fees Intangible Assets Allocation %? New Goodwill Created Total Allocation

0.0%

0.0 0.0 545.0 545.0

Liabilities & Shareholders Equity

Total Liabilities Minority Interest Preferred Common Equity Stockholders' Equity Total Liab. & Equity Balance Sheet Check

338(h)(10) Election? Goodwill Amoritzation Period Capitalized Financing Fees Amortization Period Intangible Amortization Period

No 15 8 10

(1) estimated balance sheet

05/29/2011 - 21:18:14 Page 2


OPERATING ASSUMPTIONS

Projected Fiscal Year Ending December 31,

2005 - 2007


2004

2005

2006

Total Sales % Growth Cost of Goods Sold (Excl. Depreciation) % of Sales Total Gross Profit % Margin

$600.0 NA 390.0 65.0% $210.0 35.0%

$700.0 16.7% 455.0 65.0% $245.0 35.0%

$800.0 14.3% 520.0 65.0% $280.0 35.0%

$900.0 12.5% 585.0 65.0% $315.0 35.0%

$1,000.0 11.1% 650.0 65.0% $350.0 35.0%

$1,100.0 10.0% 715.0 65.0% $385.0 35.0%

$1,210.0 10.0% 786.5 65.0% $423.5 35.0%

$1,331.0 10.0% 865.2 65.0% $465.9 35.0%

$1,370.9 3.0% 891.1 65.0% $479.8 35.0%

$1,412.1 3.0% 917.8 65.0% $494.2 35.0%

$1,454.4 3.0% 945.4 65.0% $509.0 35.0%

$1,498.1 3.0% 973.7 65.0% $524.3 35.0%

13.4% -13.4% -13.4% --

Operating Expenses % of Sales Total Normalized EBITDA % Margin % Growth

$105.0 17.5% $105.0 17.5% NA

$122.5 17.5% $122.5 17.5% 16.7%

$140.0 17.5% $140.0 17.5% 14.3%

$157.5 17.5% $157.5 17.5% 12.5%

$175.0 17.5% $175.0 17.5% 11.1%

$192.5 17.5% $192.5 17.5% 10.0%

$211.8 17.5% $211.8 17.5% 10.0%

$232.9 17.5% $232.9 17.5% 10.0%

$239.9 17.5% $239.9 17.5% 3.0%

$247.1 17.5% $247.1 17.5% 3.0%

$254.5 17.5% $254.5 17.5% 3.0%

$262.2 17.5% $262.2 17.5% 3.0%

13.4% -13.4% ---

$18.0 0.0 $87.0 14.5%

$21.0 0.0 $101.5 14.5%

$24.0 0.0 $116.0 14.5%

$27.0 0.0 $130.5 14.5%

$30.0 0.0 $145.0 14.5%

$33.0 0.0 $159.5 14.5%

$36.3 0.0 $175.5 14.5%

$39.9 0.0 $193.0 14.5%

$39.9 0.0 $200.0 14.6%

$39.9 0.0 $207.2 14.7%

$39.9 0.0 $214.6 14.8%

$39.9 0.0 $222.2 14.8%

13.4% NA 13.4% --

$21.0 0.0 $21.0

$24.0 0.0 $24.0

$27.0 0.0 $27.0

$30.0 0.0 $30.0

$33.0 0.0 $33.0

$36.3 0.0 $36.3

$39.9 0.0 $39.9

$39.9 0.0 $39.9

$39.9 0.0 $39.9

$39.9 0.0 $39.9

$39.9 0.0 $39.9

13.4% NA 13.4%

Depreciation Expense Amortization Expense Normalized EBIT % Margin

2007

2008

2009

2010

2011

2012

2013

2014

2015

CAGR

Capital Expenditures

Maintenance Growth Total Capex

$18.0 0.0 $18.0

WORKING CAPITAL ASSUMPTIONS ($ in millions, except per share amounts)

Pro Forma

Full Yr.

12/31/07

2008

2009

2010

Projected Fiscal Year Ending December 31, 2011

2012

2013

2014

2015

$1,000.0 650.0

$1,100.0 715.0

$1,210.0 786.5

$1,331.0 865.2

$1,370.9 891.1

$1,412.1 917.8

$1,454.4 945.4

$1,498.1 973.7

Working Capital Drivers

LTM Revenue LTM COGS

$900.0 585.0

Working Capital Assumptions

Accounts Receivable (% Total Revenue) Days Sales in Receivables (days) Inventory (% Total COGS) Days COGS in Inventory (days) Inventory Turns (x) Prepaid & Other Current Assets (% Total Revenue) Accounts Payable (% Total COGS) Days COGS in Payable (days) Other Current Liabilities (% Total Revenue) Net Working Capital (% of Total Revenue

11.1% 40.6 17.1% 62.4 5.9x 0.6% 17.1% 62.4 5.6% 6.1%

11.1% 40.6 17.1% 62.4 5.9x 0.6% 17.1% 62.4 5.6% 6.1%

11.1% 40.6 17.1% 62.4 5.9x 0.6% 17.1% 62.4 5.6% 6.1%

11.1% 40.6 17.1% 62.4 5.9x 0.6% 17.1% 62.4 5.6% 6.1%

11.1% 40.6 17.1% 62.4 5.9x 0.6% 17.1% 62.4 5.6% 6.1%

11.1% 40.6 17.1% 62.4 5.9x 0.6% 17.1% 62.4 5.6% 6.1%

11.1% 40.6 17.1% 62.4 5.9x 0.6% 17.1% 62.4 5.6% 6.1%

11.1% 40.6 17.1% 62.4 5.9x 0.6% 17.1% 62.4 5.6% 6.1%

11.1% 40.6 17.1% 62.4 5.9x 0.6% 17.1% 62.4 5.6% 6.1%

Working Capital Accounts

Accounts Receivable Inventory Other Current Assets Accounts Payable Other Current Liabilities Net Working Capital

$100.0 100.0 5.0 100.0 50.0 $55.0

$111.1 111.1 5.6 111.1 55.6 $61.1

$122.2 122.2 6.1 122.2 61.1 $67.2

$134.4 134.4 6.7 134.4 67.2 $73.9

$147.9 147.9 7.4 147.9 73.9 $81.3

$152.3 152.3 7.6 152.3 76.2 $83.8

$156.9 156.9 7.8 156.9 78.4 $86.3

$161.6 161.6 8.1 161.6 80.8 $88.9

$166.5 166.5 8.3 166.5 83.2 $91.5

($11.1) (11.1) (0.6) 11.1 5.6 ($6.1)

($11.1) (11.1) (0.6) 11.1 5.6 ($6.1)

($12.2) (12.2) (0.6) 12.2 6.1 ($6.7)

($13.4) (13.4) (0.7) 13.4 6.7 ($7.4)

($4.4) (4.4) (0.2) 4.4 2.2 ($2.4)

($4.6) (4.6) (0.2) 4.6 2.3 ($2.5)

($4.7) (4.7) (0.2) 4.7 2.4 ($2.6)

($4.8) (4.8) (0.2) 4.8 2.4 ($2.7)

Working Capital Changes

(Increase) / Decrease Accounts Receivable (Increase) / Decrease Inventory (Increase) / Decrease Other Current Assets Increase / (Decrease) Accounts Payable Increase / (Decrease) Other Current Liabilities Working Capital Surplus / (Deficiency)

05/29/2011 - 21:18:14 Page 3


INCOME STATEMENT

Pro Forma

Full Yr.


2007

2008

Revenue COGS Gross Profit % Margin

$900.0 585.0 315.0 35.0%

$1,000.0 650.0 350.0 35.0%

$1,000.0 650.0 350.0 35.0%

$1,100.0 715.0 385.0 35.0%

$1,210.0 786.5 423.5 35.0%

$1,331.0 865.2 465.9 35.0%

$1,370.9 891.1 479.8 35.0%

$1,412.1 917.8 494.2 35.0%

$1,454.4 945.4 509.0 35.0%

$1,498.1 973.7 524.3 35.0%

Operating Expenses Depreciation Expense Existing Amortization Expense New Intangible Amortization Expense EBIT % Margin

157.5 27.0 0.0 0.0 130.5 14.5%

175.0 30.0 0.0 0.0 145.0 14.5%

175.0 30.0 0.0 0.0 145.0 14.5%

192.5 33.0 0.0 0.0 159.5 14.5%

211.8 36.3 0.0 0.0 175.5 14.5%

232.9 39.9 0.0 0.0 193.0 14.5%

239.9 39.9 0.0 0.0 200.0 14.6%

247.1 39.9 0.0 0.0 207.2 14.7%

254.5 39.9 0.0 0.0 214.6 14.8%

262.2 39.9 0.0 0.0 222.2 14.8%

Amortization of Cap. Financing Fees Interest Income Interest Expense Pretax Income

0.0 0.0 69.0 61.5

0.0 0.0 69.0 76.0

0.0 0.0 69.0 76.0

0.0 0.0 65.5 94.0

0.0 0.0 61.1 114.3

0.0 0.0 55.7 137.3

0.0 0.0 49.0 150.9

0.0 0.0 41.3 165.9

0.0 0.0 32.8 181.8

0.0 0.0 23.4 198.8

Current Taxes Deferred Taxes Net Income

23.4 0.0 38.1

28.9 0.0 47.1

28.9 0.0 47.1

35.7 0.0 58.3

43.4 0.0 70.9

52.2 0.0 85.1

57.4 0.0 93.6

63.0 0.0 102.8

69.1 0.0 112.7

75.6 0.0 123.3

0.0 $38.1

0.0 $47.1

0.0 $47.1

0.0 $58.3

0.0 $70.9

0.0 $85.1

0.0 $93.6

0.0 $102.8

0.0 $112.7

0.0 $123.3

$130.5 27.0 $157.5 17.5%

$145.0 30.0 $175.0 17.5%

$145.0 30.0 $175.0 17.5%

$159.5 33.0 $192.5 17.5%

$175.5 36.3 $211.8 17.5%

$193.0 39.9 $232.9 17.5%

$200.0 39.9 $239.9 17.5%

$207.2 39.9 $247.1 17.5%

$214.6 39.9 $254.5 17.5%

$222.2 39.9 $262.2 17.5%

11.1% 11.1% 11.1% 11.1% 23.6%

11.1% 11.1% 11.1% 11.1% 23.6%

10.0% 10.0% 10.0% 10.0% 23.7%

10.0% 10.0% 10.0% 10.0% 21.7%

10.0% 10.0% 10.0% 10.0% 20.1%

3.0% 3.0% 3.0% 3.6% 9.9%

3.0% 3.0% 3.0% 3.6% 9.9%

3.0% 3.0% 3.0% 3.6% 9.6%

3.0% 3.0% 3.0% 3.6% 9.3%

Preferred Dividends Net Income to Common


2009

2010

2011

2012

2013

2014

2015

EBITDA Calculation

EBIT Total Deprciation & Amortization Expense EBITDA % Margin Growth Rates

Revenue Gross Profit EBITDA EBIT Net Income to Common

------

05/29/2011 - 21:18:14 Page 4


BALANCE SHEET ($ in millions, except per share amounts)

Pro Forma


12/31/07

2008

2009

2010

2011

2012

2013

2014

2015

$0.0 100.0 100.0 5.0 205.0 500.0 100.0 400.0 545.0 0.0 5.0 5.0 0.0 $1,160.0

$0.0 111.1 111.1 5.6 227.8 530.0 130.0 400.0 545.0 0.0 5.0 5.0 0.0 $1,182.8

$0.0 122.2 122.2 6.1 250.6 563.0 163.0 400.0 545.0 0.0 5.0 5.0 0.0 $1,205.6

$0.0 134.4 134.4 6.7 275.6 599.3 199.3 400.0 545.0 0.0 5.0 5.0 0.0 $1,230.6

$0.0 147.9 147.9 7.4 303.2 639.2 239.2 400.0 545.0 0.0 5.0 5.0 0.0 $1,258.2

$0.0 152.3 152.3 7.6 312.3 679.2 279.2 400.0 545.0 0.0 5.0 5.0 0.0 $1,267.3

$0.0 156.9 156.9 7.8 321.6 719.1 319.1 400.0 545.0 0.0 5.0 5.0 0.0 $1,276.6

$0.0 161.6 161.6 8.1 331.3 759.0 359.0 400.0 545.0 0.0 5.0 5.0 0.0 $1,286.3

$3.3 166.5 166.5 8.3 344.5 799.0 399.0 400.0 545.0 0.0 5.0 5.0 0.0 $1,299.5

Accounts Payable Other Current Liabilities Total Current Liabilities Revolver Debt Term Loan A Term Loan B Senior Sub Notes PIK Sub Notes Total Long Term Debt Deferred Tax Liability Other LT Liabilities Total Liabilities

$100.0 50.0 150.0 0.0 0.0 654.0 150.0 0.0 804.0 0.0 5.0 $959.0

111.1 55.6 166.7 0.0 0.0 613.0 150.0 0.0 763.0 0.0 5.0 $934.7

122.2 61.1 183.3 0.0 0.0 560.9 150.0 0.0 710.9 0.0 5.0 $899.2

134.4 67.2 201.7 0.0 0.0 496.7 150.0 0.0 646.7 0.0 5.0 $853.4

147.9 73.9 221.8 0.0 0.0 418.9 150.0 0.0 568.9 0.0 5.0 $795.8

152.3 76.2 228.5 0.0 0.0 327.8 150.0 0.0 477.8 0.0 5.0 $711.3

156.9 78.4 235.3 0.0 0.0 227.5 150.0 0.0 377.5 0.0 5.0 $617.8

161.6 80.8 242.4 0.0 0.0 117.3 150.0 0.0 267.3 0.0 5.0 $514.7

166.5 83.2 249.7 0.0 0.0 0.0 150.0 0.0 150.0 0.0 5.0 $404.7

Minority Interest Preferred Common Equity Stockholders' Equity

0.0 0.0 201.0 $201.0

0.0 0.0 248.1 $248.1

0.0 0.0 306.4 $306.4

0.0 0.0 377.2 $377.2

0.0 0.0 462.4 $462.4

0.0 0.0 556.0 $556.0

0.0 0.0 658.8 $658.8

0.0 0.0 771.5 $771.5

0.0 0.0 894.8 $894.8

Total Liab. & Equity Balance Sheet Check

$1,160.0 Check 0.0

$1,182.8 Check 0.0

$1,205.6 Check 0.0

$1,230.6 Check 0.0

$1,258.2 Check 0.0

$1,267.3 Check 0.0

$1,276.6 Check 0.0

$1,286.3 Check 0.0

$1,299.5 Check 0.0

$201.0 47.1 0.0 0.0 0.0 $248.1

$248.1 58.3 0.0 0.0 0.0 $306.4

$306.4 70.9 0.0 0.0 0.0 $377.2

$377.2 85.1 0.0 0.0 0.0 $462.4

$462.4 93.6 0.0 0.0 0.0 $556.0

$556.0 102.8 0.0 0.0 0.0 $658.8

$658.8 112.7 0.0 0.0 0.0 $771.5

$771.5 123.3 0.0 0.0 0.0 $894.8

Assets

Cash & Equivalents Accounts Receivable Inventory Other Current Assets Total Current Assets Gross PP&E Less: Accumulated Depreciation Net PP&E Net Goodwill Net Intangibles Deferred Tax Asset Other Assets Capitalized Financing Fees Total Assets Liabilities & Shareholders Equity

Changes In Common Equity

Common Equity - Beginning of Year Net Income Equity Issuances Equity Repurchases Common Stock Dividends Common Equity - End of Year

05/29/2011 - 21:18:14 Page 5


CASH FLOW STATEMENT ($ in millions, except per share amounts)

Pro Forma 2007

Full Yr. 2008

2009

2010


2014

2015

Funds From Operating Activities

Net Income Depreciation Expense Intangible Amortization Expense Amortization of Capitalized Financing Fees Interest Accretion of PIK Debt Dividend Accretion of PIK Preferred Funds From Operation Changes in Deferred Tax Assets Changes in Deferred Tax Liabilities Working Capital Surplus / (Deficiency) Cash Flow From Operating Activities

$38.1 27.0 0.0 0.0 0.0 0.0 $65.1 0.0 0.0 (6.1) $59.0

$47.1 30.0 0.0 0.0 0.0 0.0 $77.1 0.0 0.0 (6.1) $71.0

$58.3 33.0 0.0 0.0 0.0 0.0 $91.3 0.0 0.0 (6.1) $85.1

$70.9 36.3 0.0 0.0 0.0 0.0 $107.2 0.0 0.0 (6.7) $100.5

$85.1 39.9 0.0 0.0 0.0 0.0 $125.1 0.0 0.0 (7.4) $117.7

$93.6 39.9 0.0 0.0 0.0 0.0 $133.5 0.0 0.0 (2.4) $131.1

$102.8 39.9 0.0 0.0 0.0 0.0 $142.8 0.0 0.0 (2.5) $140.3

$112.7 39.9 0.0 0.0 0.0 0.0 $152.7 0.0 0.0 (2.6) $150.1

$123.3 39.9 0.0 0.0 0.0 0.0 $163.2 0.0 0.0 (2.7) $160.5

(27.0) 0.0 $32.0

(30.0) 0.0 $41.0 20.4% $41.0

(33.0) 0.0 $52.1 25.9% $93.1

(36.3) 0.0 $64.2 31.9% $157.3

(39.9) 0.0 $77.8 38.7% $235.1

(39.9) 0.0 $91.1 45.3% $326.2

(39.9) 0.0 $100.3 49.9% $426.5

(39.9) 0.0 $110.1 54.8% $536.7

(39.9) 0.0 $120.6 60.0% $657.3

0.0 0.0 (41.0) 0.0 0.0 $0.0

0.0 0.0 (52.1) 0.0 0.0 $0.0

0.0 0.0 (64.2) 0.0 0.0 $0.0

0.0 0.0 (77.8) 0.0 0.0 $0.0

0.0 0.0 (91.1) 0.0 0.0 $0.0

0.0 0.0 (100.3) 0.0 0.0 $0.0

0.0 0.0 (110.1) 0.0 0.0 $0.0

0.0 0.0 (117.3) 0.0 0.0 $3.3

Funds From Investing Activities

Total Capex Changes in Other LT Assets and LT Liabilities Free Cash Flow (Cash Available to Service Total Debt) % Return on Equity Cumulative Free Cash Flow Funds From Financing Activities

Additional Borrowings / (Mandatory Repayments) Revolver Drawdown / (Repayments) Total Optional Debt Repayments Common Stock Dividends Equity Issuances / (Repurchases) Change in Cash & Cash Equivalents PP&E AND DEPRECIATION SUMMARY ($ in millions, except per share amounts)

Pro Forma 12/31/07

Full Yr.


2008

2009

2010

2011

2012

2013

2014

2015

$500.0 0.0 $500.0

$500.0 30.0 $530.0

$530.0 33.0 $563.0

$563.0 36.3 $599.3

$599.3 39.9 $639.2

$639.2 39.9 $679.2

$679.2 39.9 $719.1

$719.1 39.9 $759.0

$759.0 39.9 $799.0

$100.0 0.0 $100.0

$100.0 30.0 $130.0

$130.0 33.0 $163.0

$163.0 36.3 $199.3

$199.3 39.9 $239.2

$239.2 39.9 $279.2

$279.2 39.9 $319.1

$319.1 39.9 $359.0

$359.0 39.9 $399.0

$500.0 100.0 $400.0

$530.0 130.0 $400.0

$563.0 163.0 $400.0

$599.3 199.3 $400.0

$639.2 239.2 $400.0

$679.2 279.2 $400.0

$719.1 319.1 $400.0

$759.0 359.0 $400.0

$799.0 399.0 $400.0

Gross PP&E

Gross PP&E - Beginning of Period Plus: Capex Gross PP&E - End of Period Accumulated Depreciation

Accumulated Depreciation - Beginning of Period Plus: Book Depreciation Expense Accumulated Depreciation - End of Period Net PP&E

Gross PP&E - End of Period Accumulated Depreciation Net PP&E - End of Period

05/29/2011 - 21:18:14 Page 6


FINANCING COSTS AND OTHER ASSUMPTIONS

Full Yr.


2007

2008


2010

2011

2012

2013

2014

2015

Interest / Dividend Rate Summary

LIBOR 5 Year Swap Rate

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

7.50% 8.50% 8.75%

7.50% 8.50% 8.75%

7.50% 8.50% 8.75%

7.50% 8.50% 8.75%

7.50% 8.50% 8.75%

7.50% 8.50% 8.75%

7.50% 8.50% 8.75%

7.50% 8.50% 8.75%

6.00% Pro Forma

% Swapped

LIBOR +

into Fixed

Interest Rate on Revolver Debt Interest Rate on Term Loan B Interest Rate on Senior Sub Notes

2.50% 3.50% --

0.0% 0.0% --

Interest Income & Expense Summary

Revolver Debt Interest Expense Term Loan B Interest Expense Senior Sub Notes Interest Expense Total Interest Expense Annual Revolver Commitment Fee (0.3% of Undrawn Balance) Total Interest Income

$0.0 55.6 13.1 $68.7

$0.0 52.1 13.1 $65.2

$0.0 47.7 13.1 $60.8

$0.0 42.2 13.1 $55.3

$0.0 35.6 13.1 $48.7

$0.0 27.9 13.1 $41.0

$0.0 19.3 13.1 $32.5

$0.0 10.0 13.1 $23.1

$0.3 $0.0

$0.3 $0.0

$0.3 $0.0

$0.3 $0.0

$0.3 $0.0

$0.3 $0.0

$0.3 $0.0

$0.3 $0.0

38.0% 38.0% $0.00

38.0% 38.0% $0.00

38.0% 38.0% $0.00

38.0% 38.0% $0.00

38.0% 38.0% $0.00

38.0% 38.0% $0.00

38.0% 38.0% $0.00

38.0% 38.0% $0.00

Other Assumptions

Book Income Tax Rate Cash Income Tax Rate Common Dividend per Share TAX SCHEDULE ($ in millions, except per share amounts)

38.0% 38.0% $0.00 Pro Forma

Full Yr.

2007

2008


2010

2011

2012

2013

2014

2015

Cash Income Tax Schedule

Book Pretax Income Plus: Non-Decuctible Items Less: 338(h)(10) Goodwill Amortization Less: Other Deductions Taxable Income Utilization of NOL Net Adjusted Taxable Income Cash Tax Rate Cash Tax Provision

$61.5 0.0 0.0 0.0 $61.5 0.0 $61.5 38.0% $23.4

$76.0 0.0 0.0 0.0 $76.0 0.0 $76.0 38.0% $28.9

$94.0 0.0 0.0 0.0 $94.0 0.0 $94.0 38.0% $35.7

$114.3 0.0 0.0 0.0 $114.3 0.0 $114.3 38.0% $43.4

$137.3 0.0 0.0 0.0 $137.3 0.0 $137.3 38.0% $52.2

$150.9 0.0 0.0 0.0 $150.9 0.0 $150.9 38.0% $57.4

$165.9 0.0 0.0 0.0 $165.9 0.0 $165.9 38.0% $63.0

$181.8 0.0 0.0 0.0 $181.8 0.0 $181.8 38.0% $69.1

$198.8 0.0 0.0 0.0 $198.8 0.0 $198.8 38.0% $75.6

$0.0 0.0 0.0 $0.0

$0.0 0.0 0.0 $0.0

$0.0 0.0 0.0 $0.0

$0.0 0.0 0.0 $0.0

$0.0 0.0 0.0 $0.0

$0.0 0.0 0.0 $0.0

$0.0 0.0 0.0 $0.0

$0.0 0.0 0.0 $0.0

$0.0 0.0 0.0 $0.0

$0.0 0.0 0.0 $0.0

$5.0 0.0 0.0 $5.0

$5.0 0.0 0.0 $5.0

$5.0 0.0 0.0 $5.0

$5.0 0.0 0.0 $5.0

$5.0 0.0 0.0 $5.0

$5.0 0.0 0.0 $5.0

$5.0 0.0 0.0 $5.0

$5.0 0.0 0.0 $5.0

$61.5 0.0 61.5 0.0 61.5 38.0% $23.4 $23.4 $0.0

$76.0 0.0 76.0 0.0 76.0 38.0% $28.9 $28.9 $0.0

$94.0 0.0 94.0 0.0 94.0 38.0% $35.7 $35.7 $0.0

$114.3 0.0 114.3 0.0 114.3 38.0% $43.4 $43.4 $0.0

$137.3 0.0 137.3 0.0 137.3 38.0% $52.2 $52.2 $0.0

$150.9 0.0 150.9 0.0 150.9 38.0% $57.4 $57.4 $0.0

$165.9 0.0 165.9 0.0 165.9 38.0% $63.0 $63.0 $0.0

$181.8 0.0 181.8 0.0 181.8 38.0% $69.1 $69.1 $0.0

$198.8 0.0 198.8 0.0 198.8 38.0% $75.6 $75.6 $0.0

NOL Calculation

Beginning of Year NOL Carryforward Additions Subtractions End of Year NOL Carryforward Deferred Tax Asset Calculation

Beginning of Period Deferred Tax Asset Additions Subtractions End of Period Deferred Tax Asset Book Income Tax Schedule

Pretax Income Non-Tax Deductible Amortization Taxable Income Utilization of NOL Net Adjusted Taxable Income Book Tax Rate Total Tax Provision Current Taxes Deferred Taxes

05/29/2011 - 21:18:15 Page 7


05/29/2011 - 21:18:15 Page 8


DEBT AND CASH SCHEDULES

Full Yr.


2008


2010

2011

2012

2013

2014

2015

$0.0 0.0 100.3 0.0 0.0 0.0 $100.3 0.0 100.3 0.0 100.3 (100.3) 0.0 0.0 100.3

$0.0 0.0 110.1 0.0 0.0 0.0 $110.1 0.0 110.1 0.0 110.1 (110.1) 0.0 0.0 110.1

$0.0 0.0 120.6 0.0 0.0 0.0 $120.6 0.0 120.6 0.0 120.6 (117.3) 3.3 0.0 120.6

Debt Amortization Detail

Cash & Cash Equivalents - Beginning of Year Minimum Operating Cash Requirement (WC Cash - Enter as Negative) Free Cash Flow (Cash Available to Service Total Debt) Additional Borrowings / (Mandatory Repayments) Common Stock Dividends Equity Issuances / (Repurchases) Net Cash Available to Service Total Debt / (Funds Required) Revolver Drawdown / (Repayments) Cash Available to Service Term Loan A Optional Repayments on Term Loan A Cash Available to Service Term Loan B Optional Repayments on Term Loan B Cash Available to Service Senior Sub Notes Optional Repayments on Senior Sub Notes Cash & Cash Equivalents - End of Year (before optional pre-payments of bonds or preferred)

$0.0 0.0 41.0 0.0 0.0 0.0 $41.0 0.0 41.0 0.0 41.0 (41.0) 0.0 0.0 41.0

$0.0 0.0 52.1 0.0 0.0 0.0 $52.1 0.0 52.1 0.0 52.1 (52.1) 0.0 0.0 52.1

$0.0 0.0 64.2 0.0 0.0 0.0 $64.2 0.0 64.2 0.0 64.2 (64.2) 0.0 0.0 64.2

$0.0 0.0 77.8 0.0 0.0 0.0 $77.8 0.0 77.8 0.0 77.8 (77.8) 0.0 0.0 77.8

$0.0 0.0 91.1 0.0 0.0 0.0 $91.1 0.0 91.1 0.0 91.1 (91.1) 0.0 0.0 91.1

Revolver Debt

Beginning Balance Revolver Drawdown Revolver Repayments Ending Balance Beginning Balance Average Interest? Interest Rate on Revolver Debt Interest Expense Term Loan B

Beginning Balance Additional Borrowings Mandatory Repayments Optional Repayments Ending Balance Beginning Balance Interest Rate Interest Expense

Amortize ? Years to Amortize

Optional Repayments? Average Interest?

No

No 5

Yes No

$0.0 0.0 0.0 $0.0 $0.0 7.5% $0.0

$0.0 0.0 0.0 $0.0 $0.0 7.5% $0.0

$0.0 0.0 0.0 $0.0 $0.0 7.5% $0.0

$0.0 0.0 0.0 $0.0 $0.0 7.5% $0.0

$0.0 0.0 0.0 $0.0 $0.0 7.5% $0.0

$0.0 0.0 0.0 $0.0 $0.0 7.5% $0.0

$0.0 0.0 0.0 $0.0 $0.0 7.5% $0.0

$0.0 0.0 0.0 $0.0 $0.0 7.5% $0.0

$654.0 0.0 0.0 (41.0) $613.0 $654.0 8.5% $55.6

$613.0 0.0 0.0 (52.1) $560.9 $613.0 8.5% $52.1

$560.9 0.0 0.0 (64.2) $496.7 $560.9 8.5% $47.7

$496.7 0.0 0.0 (77.8) $418.9 $496.7 8.5% $42.2

$418.9 0.0 0.0 (91.1) $327.8 $418.9 8.5% $35.6

$327.8 0.0 0.0 (100.3) $227.5 $327.8 8.5% $27.9

$227.5 0.0 0.0 (110.1) $117.3 $227.5 8.5% $19.3

$117.3 0.0 0.0 (117.3) $0.0 $117.3 8.5% $10.0

$150.0 0.0 0.0 $150.0 $150.0 8.8% $13.1

$150.0 0.0 0.0 $150.0 $150.0 8.8% $13.1

$150.0 0.0 0.0 $150.0 $150.0 8.8% $13.1

$150.0 0.0 0.0 $150.0 $150.0 8.8% $13.1

$150.0 0.0 0.0 $150.0 $150.0 8.8% $13.1

$150.0 0.0 0.0 $150.0 $150.0 8.8% $13.1

$150.0 0.0 0.0 $150.0 $150.0 8.8% $13.1

$150.0 0.0 0.0 $150.0 $150.0 8.8% $13.1

$0.0 0.0 $0.0 $0.0 2.0% $0.0

$0.0 0.0 $0.0 $0.0 2.0% $0.0

$0.0 0.0 $0.0 $0.0 2.0% $0.0

$0.0 0.0 $0.0 $0.0 2.0% $0.0

$0.0 0.0 $0.0 $0.0 2.0% $0.0

$0.0 0.0 $0.0 $0.0 2.0% $0.0

$0.0 0.0 $0.0 $0.0 2.0% $0.0

$0.0 3.3 $3.3 $0.0 2.0% $0.0

Senior Sub Notes

Beginning Balance Additional Borrowings / (Mandatory Repayments) Optional Repayments Optional Repayments? Ending Balance Beginning Balance Average Interest? Interest Rate Interest Expense

No No

Cash & Equivalents

Beginning Balance Change in Cash & Equivalents Ending Balance Beginning Balance Average Interest? Interest Rate on Cash & Equivalents Interest Income

No

05/29/2011 - 21:18:15 Page 9


SPONSOR EQUITY RETURNS - EBITDA BASIS ($ in millions, except per share amounts)

Exit at End of FY2012 - 5 Years


Exit Valuation

EBITDA - Exit Year Exit Multiple Exit Enterprise Value Less: Total Debt Less: Preferred Stock Plus: Cash Value of Common Equity at Exit Less: Warrants to Mezz Holders (0.0% Free Warrants) Less: Management Options (7.5% of Net Gain in Equity) Net Value of Common Equity at Exit

$239.9 6.50x $1,559.4 (477.8) 0.0 0.0 1,081.6 0.0 (66.0) $1,015.6

$239.9 7.00x $1,679.4 (477.8) 0.0 0.0 1,201.6 0.0 (75.0) $1,126.5

$239.9 7.50x $1,799.3 (477.8) 0.0 0.0 1,321.5 0.0 (84.0) $1,237.5

$239.9 8.00x $1,919.3 (477.8) 0.0 0.0 1,441.5 0.0 (93.0) $1,348.5

$254.5 6.50x $1,654.4 (267.3) 0.0 0.0 1,387.1 0.0 (89.0) $1,298.1

$254.5 7.00x $1,781.7 (267.3) 0.0 0.0 1,514.3 0.0 (98.5) $1,415.8

$254.5 7.50x $1,908.9 (267.3) 0.0 0.0 1,641.6 0.0 (108.0) $1,533.5

($201.0) 0.0 0.0 0.0 0.0 $1,015.6 0.0 0.0 38.2%

($201.0) 0.0 0.0 0.0 0.0 $1,126.5 0.0 0.0 41.1%

($201.0) 0.0 0.0 0.0 0.0 $1,237.5 0.0 0.0 43.8%

($201.0) 0.0 0.0 0.0 0.0 $1,348.5 0.0 0.0 46.3%

($201.0) 0.0 0.0 0.0 0.0 0.0 0.0 $1,298.1 30.5%

($201.0) 0.0 0.0 0.0 0.0 0.0 0.0 $1,415.8 32.1%

($201.0) 0.0 0.0 0.0 0.0 0.0 0.0 $1,533.5 33.7%

$814.6 5.1x

$925.5 5.6x

$1,036.5 6.2x

$1,147.5 6.7x

$1,097.1 6.5x

$1,214.8 7.0x

$1,332.5 7.6x

7.8x 7.8x 10.5x

8.4x 8.4x 11.7x

9.0x 9.0x 12.8x

9.6x 9.6x 14.0x

7.7x 7.7x 11.3x

8.3x 8.3x 12.3x

8.9x 8.9x 13.3x

Return to Sponsor

Initial Investment - 12/31/07 Cash Flow to Sponsor - 2008 Cash Flow to Sponsor - 2009 Cash Flow to Sponsor - 2010 Cash Flow to Sponsor - 2011 Cash Flow to Sponsor - 2012 Cash Flow to Sponsor - 2013 Cash Flow to Sponsor - 2014 IRR

12/31/07 12/30/08 12/31/09 12/31/10 12/31/11 12/30/12 12/31/13 12/31/14

Net Gain Multiple of Initial Investment Implied Multiples

EV / EBITDA - Capex EV / EBIT Equity Value / Forward Earnings SPONSOR EQUITY RETURNS - EARNINGS BASIS ($ in millions, except per share amounts)



Exit Valuation

Forward Earnings - Exit Year Exit Multiple Value of Common Equity at Exit Less: Warrants to Mezz Holders (0.0% Free Warrants) Less: Management Options (7.5% of Net Gain in Equity) Net Value of Common Equity at Exit

$102.8 13.0x $1,337.0 0.0 (85.2) $1,251.8

$102.8 14.0x $1,439.8 0.0 (92.9) $1,346.9

$102.8 15.0x $1,542.7 0.0 (100.6) $1,442.1

$102.8 16.0x $1,645.5 0.0 (108.3) $1,537.2

$123.3 13.0x $1,602.5 0.0 (105.1) $1,497.4

$123.3 14.0x $1,725.7 0.0 (114.4) $1,611.4

$123.3 15.0x $1,849.0 0.0 (123.6) $1,725.4

($201.0) 0.0 0.0 0.0 0.0 $1,251.8 0.0 0.0 44.1%

($201.0) 0.0 0.0 0.0 0.0 $1,346.9 0.0 0.0 46.3%

($201.0) 0.0 0.0 0.0 0.0 $1,442.1 0.0 0.0 48.3%

($201.0) 0.0 0.0 0.0 0.0 $1,537.2 0.0 0.0 50.2%

($201.0) 0.0 0.0 0.0 0.0 0.0 0.0 $1,497.4 33.2%

($201.0) 0.0 0.0 0.0 0.0 0.0 0.0 $1,611.4 34.6%

($201.0) 0.0 0.0 0.0 0.0 0.0 0.0 $1,725.4 35.9%

$1,050.8 6.2x

$1,145.9 6.7x

$1,241.1 7.2x

$1,336.2 7.6x

$1,296.4 7.4x

$1,410.4 8.0x

$1,524.4 8.6x

7.6x 9.1x 9.1x

8.0x 9.6x 9.6x

8.4x 10.1x 10.1x

8.9x 10.6x 10.6x

7.3x 8.7x 8.7x

7.8x 9.3x 9.3x

8.3x 9.9x 9.9x

Return to Sponsor

Initial Investment - 12/31/07 Cash Flow to Sponsor - 2008 Cash Flow to Sponsor - 2009 Cash Flow to Sponsor - 2010 Cash Flow to Sponsor - 2011 Cash Flow to Sponsor - 2012 Cash Flow to Sponsor - 2013 Cash Flow to Sponsor - 2014 IRR Net Gain Multiple of Initial Investment

12/31/07 12/30/08 12/31/09 12/31/10 12/31/11 12/30/12 12/31/13 12/31/14

Implied Multiples

EV / EBITDA EV / EBIT EV / EBITDA - Capex

05/29/2011 - 21:18:15 Page 10


CONTROL PANEL TRIGGERS / INPUTS

CAPITAL STRUCTURE CASE DESCRIPTIONS


Case Case Triggers

Capital Structure Case Operating Case

2 1

Circ Triggers

Average Interest Trigger Calculate Bank/Bond Fees?

No No

Date/Stub Inputs

Stub Percentage LTM Date Last Historical Year Exit Year

100.0% 12/31/07 12/31/07 12/31/12

1 2 3 4 5 6 7 8 9 10

Description

No Transaction Proposal from Bank A Proposal from Bank B

Purchase Price Inputs

Base Transaction EBITDA Purchase Price Mult. 6.0x Total Transaction Value $1,000 Purchase Price Step $50 General Inputs

Company Name Minimum WC Cash Base Exit EBITDA Multiple Multiple Step Base Exit Earnings Multiple Multiple Step Shares Outstanding Current Share Price

Industrial $0.0 7.00x 0.5x 14.0x 1.0x NA NA

OPERATING CASE DESCRIPTIONS Case 1 2 3 4 5

Description

Offering Memo Case Case 2 Case 3 Case 4 Case 5

05/29/2011 - 21:18:15 Page 11


CAPITAL STRUCTURE CASES ($ in millions, except per share amounts)

Case 1

Bank Debt Constraint Total Leverage Constraint Minimum Equity Constraint EBITDA for Constraints

0.0x 0.0x 20.0% $166.3

2

3

4.5x 6.0x 20.0% $166.3

4.5x 6.0x 20.0% $157.5

$0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

$0.0 0.0 0.0 654.0 150.0 0.0 804.0 0.0 0.0 201.0 201.0 1,005.0

$0.0 0.0 0.0 0.0 0.0 $0.0

4

5

6

7

8

9

10

Active Case 2

Refinance Trigger

0.0x 0.0x 20.0% $166.3

0.0x 0.0x 20.0% $166.3

0.0x 0.0x 20.0% $166.3

0.0x 0.0x 20.0% $166.3

0.0x 0.0x 20.0% $166.3

0.0x 0.0x 20.0% $166.3

0.0x 0.0x 20.0% $166.3

4.5x 6.0x 20.0% $166.3

$0.0 0.0 0.0 555.0 255.0 0.0 810.0 0.0 0.0 202.5 202.5 1,012.5

$0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

$0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

$0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

$0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

$0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

$0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

$0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

$0.0 0.0 0.0 654.0 150.0 0.0 804.0 0.0 0.0 201.0 201.0 1,005.0

$595.0 0.0 0.0 0.0 5.0 $600.0

$595.0 0.0 0.0 0.0 12.5 $607.5

$0.0 0.0 0.0 0.0 0.0 $0.0

$0.0 0.0 0.0 0.0 0.0 $0.0

$0.0 0.0 0.0 0.0 0.0 $0.0

$0.0 0.0 0.0 0.0 0.0 $0.0

$0.0 0.0 0.0 0.0 0.0 $0.0

$0.0 0.0 0.0 0.0 0.0 $0.0

$0.0 0.0 0.0 0.0 0.0 $0.0

$595.0 0.0 0.0 0.0 5.0 $600.0

$0.0 0.0 0.0 0.0 0.0 0.0

$10.0 400.0 0.0 0.0 0.0 410.0

$10.0 400.0 0.0 0.0 0.0 410.0

$10.0 400.0 0.0 0.0 0.0 410.0

$10.0 400.0 0.0 0.0 0.0 410.0

$10.0 400.0 0.0 0.0 0.0 410.0

$10.0 400.0 0.0 0.0 0.0 410.0

$10.0 400.0 0.0 0.0 0.0 410.0

$10.0 400.0 0.0 0.0 0.0 410.0

$10.0 400.0 0.0 0.0 0.0 410.0

$10.0 400.0 0.0 0.0 0.0 410.0

Yes Yes Yes Yes Yes

0.0 0.0 0.0 0.0 0.0 $0.0 Check

0.0 0.0 (5.0) 0.0 0.0 $1,005.0 Check

0.0 0.0 (5.0) 0.0 0.0 $1,012.5 Check

0.0 0.0 0.0 0.0 0.0 $410.0 Error

0.0 0.0 0.0 0.0 0.0 $410.0 Error

0.0 0.0 0.0 0.0 0.0 $410.0 Error

0.0 0.0 0.0 0.0 0.0 $410.0 Error

0.0 0.0 0.0 0.0 0.0 $410.0 Error

0.0 0.0 0.0 0.0 0.0 $410.0 Error

0.0 0.0 0.0 0.0 0.0 $410.0 Error

0.0 0.0 (5.0) 0.0 0.0 $1,005.0 Check

No

Sources

Excess Cash of Company Revolver Debt Term Loan A Term Loan B Senior Sub Notes PIK Sub Notes Total Debt Preferred Rollover Equity Sponsor Common Equity Total Equity Total Sources Uses

Equity Purcahse Price Rollover Equity Bank Fees Bond Fees Other Transaction Expenses Total Purchase Price Existing Debt Refinanced Revolver Debt Term Loan A Term Loan B Senior Sub Notes PIK Sub Notes Total Debt Refinanced Existing Preferred Refinanced: Preferred Total Preferred Refinanced Less: Excess Cash Used Prepayment Penalties Excess Cash for WC Total Uses Sources/Uses Check

05/29/2011 - 21:18:15 Page 12


INTEREST RATE / FINANCING ASSUMPTION CASES ($ in millions, except per share amounts)

Case 10

Active Case 2

1

2

3

4

5

6

7

8

9

0.00% 0.00% 0.00%

2.50% 3.00% 3.50%

2.50% 3.00% 3.50%

0.00% 0.00% 0.00%

0.00% 0.00% 0.00%

0.00% 0.00% 0.00%

0.00% 0.00% 0.00%

0.00% 0.00% 0.00%

0.00% 0.00% 0.00%

0.00% 0.00% 0.00%

2.50% 3.00% 3.50%

0.00% 0.00% 0.00%

8.75% 0.00% 9.00%

8.75% 0.00% 9.00%

0.00% 0.00% 0.00%

0.00% 0.00% 0.00%

0.00% 0.00% 0.00%

0.00% 0.00% 0.00%

0.00% 0.00% 0.00%

0.00% 0.00% 0.00%

0.00% 0.00% 0.00%

8.75% 0.00% 9.00%

0.00% $0.0 0.00% 0.00% $0.0 $0.0

0.25% $125.0 1.75% 3.24% $0.0 $0.0

0.25% $125.0 1.75% 3.24% $0.0 $0.0

0.00% $0.0 0.00% 0.00% $0.0 $0.0

0.00% $0.0 0.00% 0.00% $0.0 $0.0

0.00% $0.0 0.00% 0.00% $0.0 $0.0

0.00% $0.0 0.00% 0.00% $0.0 $0.0

0.00% $0.0 0.00% 0.00% $0.0 $0.0

0.00% $0.0 0.00% 0.00% $0.0 $0.0

0.00% $0.0 0.00% 0.00% $0.0 $0.0

0.25% $125.0 1.75% 3.24% $0.0 $0.0

Spreads over LIBOR

Revolver Debt Term Loan A Term Loan B Interest / Dividend Rates

Senior Sub Notes PIK Sub Notes Preferred Other Financing Assumptions

Revolver Commitment Fee Revolver Amount Bank Debt Fees Bond Fees Hardcode Bank Amt. Hardcode Bond Amt.

05/29/2011 - 21:18:15 Page 13


OPERATING CASES 2008

2009

2010

2011

2012

2013

2014

2015

Revenue Growth Rate

Offering Memo Case Case 2 Case 3 Case 4 Case 5 Offering Memo Case

11.1% 3.0% 26.7% 0.0% 0.0% 11.1%

10.0% 3.0% 6.3% 0.0% 0.0% 10.0%

10.0% 3.0% 6.4% 0.0% 0.0% 10.0%

10.0% 3.0% 6.0% 0.0% 0.0% 10.0%

3.0% 3.0% 6.0% 0.0% 0.0% 3.0%

3.0% 3.0% 6.0% 0.0% 0.0% 3.0%

3.0% 3.0% 6.0% 0.0% 0.0% 3.0%

3.0% 3.0% 6.0% 0.0% 0.0% 3.0%

35.0% 35.0% 35.0% 0.0% 0.0% 35.0%

35.0% 35.0% 35.0% 0.0% 0.0% 35.0%

35.0% 35.0% 35.0% 0.0% 0.0% 35.0%

35.0% 35.0% 35.0% 0.0% 0.0% 35.0%

35.0% 35.0% 35.0% 0.0% 0.0% 35.0%

35.0% 35.0% 35.0% 0.0% 0.0% 35.0%

35.0% 35.0% 35.0% 0.0% 0.0% 35.0%

35.0% 35.0% 35.0% 0.0% 0.0% 35.0%

17.5% 17.5% 0.0% 0.0% 0.0% 17.5%

17.5% 17.5% 0.0% 0.0% 0.0% 17.5%

17.5% 17.5% 0.0% 0.0% 0.0% 17.5%

17.5% 17.5% 0.0% 0.0% 0.0% 17.5%

17.5% 17.5% 0.0% 0.0% 0.0% 17.5%

17.5% 17.5% 0.0% 0.0% 0.0% 17.5%

17.5% 17.5% 0.0% 0.0% 0.0% 17.5%

17.5% 17.5% 0.0% 0.0% 0.0% 17.5%

Gross Margin

Offering Memo Case Case 2 Case 3 Case 4 Case 5 Offering Memo Case EBITDA Margin

Offering Memo Case Case 2 Case 3 Case 4 Case 5 Offering Memo Case Depreciation Expense


$30.0 30.0 30.0 0.0 0.0 $30.0

$33.0 33.0 33.0 0.0 0.0 $33.0

$36.3 36.3 36.3 0.0 0.0 $36.3

$39.9 39.9 39.9 0.0 0.0 $39.9

$39.9 39.9 39.9 0.0 0.0 $39.9

$39.9 39.9 39.9 0.0 0.0 $39.9

$39.9 39.9 39.9 0.0 0.0 $39.9

$39.9 39.9 39.9 0.0 0.0 $39.9

$0.0 0.0 0.0 0.0 0.0 $0.0

$0.0 0.0 0.0 0.0 0.0 $0.0

$0.0 0.0 0.0 0.0 0.0 $0.0

$0.0 0.0 0.0 0.0 0.0 $0.0

$0.0 0.0 0.0 0.0 0.0 $0.0

$0.0 0.0 0.0 0.0 0.0 $0.0

$0.0 0.0 0.0 0.0 0.0 $0.0

$0.0 0.0 0.0 0.0 0.0 $0.0

$30.0 30.0 0.0 0.0 0.0 $30.0

$33.0 33.0 0.0 0.0 0.0 $33.0

$36.3 36.3 0.0 0.0 0.0 $36.3

$39.9 39.9 0.0 0.0 0.0 $39.9

$39.9 39.9 0.0 0.0 0.0 $39.9

$39.9 39.9 0.0 0.0 0.0 $39.9

$39.9 39.9 0.0 0.0 0.0 $39.9

$39.9 39.9 0.0 0.0 0.0 $39.9

$0.0 0.0 0.0 0.0 0.0 $0.0

$0.0 0.0 0.0 0.0 0.0 $0.0

$0.0 0.0 0.0 0.0 0.0 $0.0

$0.0 0.0 0.0 0.0 0.0 $0.0

$0.0 0.0 0.0 0.0 0.0 $0.0

$0.0 0.0 0.0 0.0 0.0 $0.0

$0.0 0.0 0.0 0.0 0.0 $0.0

$0.0 0.0 0.0 0.0 0.0 $0.0

Amortization Expense

Offering Memo Case Case 2 Case 3 Case 4 Case 5 Offering Memo Case Maintenance Capex

Offering Memo Case Case 2 Case 3 Case 4 Case 5 Offering Memo Case Growth Capex


05/29/2011 - 21:18:15 Page 14


CASE #1: OFFERING MEMO CASE ($ in millions, except per share amounts)

Total Revenue % Growth

2008

2009

2010

2011

2012

2013

2014

2015

$1,000.0 11.1%

$1,100.0 10.0%

$1,210.0 10.0%

$1,331.0 10.0%

$1,464.1 10.0%

$1,610.5 10.0%

$1,771.6 10.0%

$1,948.7 10.0%

Gross Profit % Margin

$350.0 35.0%

$385.0 35.0%

$423.5 35.0%

$465.9 35.0%

$512.4 35.0%

$563.7 35.0%

$620.0 35.0%

$682.1 35.0%

EBITDA % Margin

$175.0 17.5%

$192.5 17.5%

$211.8 17.5%

$232.9 17.5%

$256.2 17.5%

$281.8 17.5%

$310.0 17.5%

$341.0 17.5%

Maintenance Capex Expansion Capex Total Capex

$30.0 0.0 $30.0

$33.0 0.0 $33.0

$36.3 0.0 $36.3

$39.9 0.0 $39.9

$43.9 0.0 $43.9

$48.3 0.0 $48.3

$53.1 0.0 $53.1

$58.5 0.0 $58.5

Depreciation Expense

$30.0

$33.0

$36.3

$39.9

$43.9

$48.3

$53.1

$58.5

05/29/2011 - 21:18:15 Page 15

NA NA No 12/31/12 7.0x 92.5% 7.5% 0.0% Yes

Multiple 2008

5.7x 6.9x 6.9x

4.3x

terprise Value (before fees) $1,050

405.0 $645.0 166.3 6.3x $211

ion Enterprise Value $1,050

31.6% 35.1% 38.2% 41.1% 43.8%

ion Enterprise Value $1,050

34.1% 36.9% 39.5% 41.9% 44.1%

05/29/2011 - 21:18:15 Page 16

05/29/2011 - 21:18:15 Page 17

2007 - 2015 CAGR

6.6% -6.6% -6.6% -6.6% -6.6% --5.0% NA 6.9% --

5.0% NA 5.0%

05/29/2011 - 21:18:15 Page 18

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05/29/2011 - 21:18:16 Page 22

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05/29/2011 - 21:18:16 Page 24

2014 - 7 Years

$254.5 8.00x $2,036.2 (267.3) 0.0 0.0 1,768.9 0.0 (117.6) $1,651.3

($201.0) 0.0 0.0 0.0 0.0 0.0 0.0 $1,651.3 35.1% $1,450.3 8.2x

9.5x 9.5x 14.3x

2014 - 7 Years

$123.3 16.0x $1,972.3 0.0 (132.8) $1,839.4

($201.0) 0.0 0.0 0.0 0.0 0.0 0.0 $1,839.4 37.2% $1,638.4 9.2x

8.8x 10.4x 10.4x 05/29/2011 - 21:18:16 Page 25

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05/29/2011 - 21:18:16 Page 30

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