LionTree Investment Banking Pitch Book
Saturn Discounted Cash Flow Analysis - Based on Sensitivity Case¹,2
($mm)
EBITDA (Before SBC)
Less: Stock Based Compensation
Less: Depreciation & Amortization
EBIT
Less: Taxes @ 35%
After-Tax EBIT
Plus: Depreciation and Amortization
Less: Capex
Plus: Amortization of Programming Rights
Less: Program Rights Payments
Plus: Amortization of Investments in Films and TV Programs
Less: Investments in Film and TV Programs
Less: (Increase) / Decrease in Working Capital and Other
Unlevered Free Cash Flows
Present Value of Cash Flows
Present Value of Terminal Value
Present Value of Enterprise
Less: Net Debt & Other
Present Value of Equity
Shares
Price Per Share
Draft Working Materials - Subject to Change
1,162
3,026
4,188
(1,096)
3,092
104.1
$29.69
LionTree Notes:
WACC
8.75%
9.00%
9.25%
9.50%
9.75%
Source: Historical and projected financial information per Saturn management
9 Mos '16E
363
(22)
(18)
323
(113)
210
18
(22)
443
(256)
100
(323)
53
223
7.00x
$28.53
28.19
27.85
27.52
27.20
Fiscal Year Ended December 31,
2017E
2019E
503
(31)
(24)
448
(157)
291
24
(19)
605
(267)
145
(429)
(43)
307
2018E
572
(30)
(26)
7.25x
$29.46
29.11
28.77
28.43
28.09
517
(181)
336
26
(13)
599
(310)
146
(434)
(52)
297
DCF Equity Value Per Share
593
7.50x
$30.40
30.04
29.69
29.34
28.99
(34)
(25)
534
(187)
347
25
(20)
619
(321)
151
(449)
(57)
LTM Terminal EBITDA Multiple
7.75x
$31.34
30.97
30.60
30.24
29.89
295
1) Assumes mid-year convention, discounted back to 3/31/16; based on balance sheet as of 3/31/16 (net debt of $1,121mm), equity in affiliates of $25mm
2) Sensitivity Case assumes $40mm reduction in revenue flowing through EBITDA
2020E
614
(35)
(26)
553
(194)
360
26
(21)
639
(331)
156
(464)
(63)
302
8.00x
$32.27
31.89
31.52
31.15
30.78
12View entire presentation