Citi Investment Banking Pitch Book
ALR Financial Analysis Summary
For informational Purposes
Discounted Cash
Flow Analysis
Selected Precedent
Transactions
Analysis
Select Public
Companies (4)
Selected 13E-3
Precedent
Transactions
Market Statistics
Methodology
Unlevered DCF
(Incl. and Excl.
NOL Utilization)
EV / NTM EBITDA
EV / 2023E EBITDA
Offer Premium to
Unaffected Share Price
1-Year High/Low
6-Month High/Low
3-Month High/Low
Implied Per Share Equity Value Reference Range
$1.54
Range Excl.
NOL Utilization
$1.00
$0.55
$0.88
$0.55
$1.19
$0.55
$1.00
$1.34
$1.39
$1.17
$1.78
Range Incl.
NOL Utilization
$0.95
$2.11
$1.71
Offer Price: $1.31
Source: ALR Management, press releases, Wall Street Research and FactSet as of 02/02/2023.
Shown for informational purposes. Implied firm value calculated using YE 2022 net debt balance of $24.4mm
and fully diluted shares outstanding of 33.5mm as of 02/02/2023 as provided by ALR management.
(2)
(3)
(4)
$2.96
Implied Firm Value ($mm)(¹)
$57.7 -$84.02)
$58.0-$70.9
$69.2 - $95.1
$53.7-$63.4
$42.8-$123.4
$42.8-$81.6
$42.8-$56.2
Commentary
• WACC range of 17.7% -19.8%
● Terminal year perpetuity growth rate
range of 1.0% to 3.0%
• Selected multiples range of 9.2x - 11.2x
and ALR mgmt. 2023E EBITDA of
$6.3mm (3)
• Selected multiples range of 10.9x - 15.0x
and ALR mgmt. 2023E EBITDA of
$6.3mm(3)
• Based on 25th to 75th percentile offer
premium range of 8.2% to 43.9% and ALR
unaffected closing share price of $0.81 on
02/02/2023
Based on Implied Per Share Equity Value range of $1.00 to $1.78.
Represents ALR Adj. EBITDA not burdened by $2.0mm annual Stock-Based Compensation expense.
Selected public companies include BKD, SNDA, ENSG and PNTG.
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