Morgan Stanley Investment Banking Pitch Book
Project Roosevelt
Application of peer EBITDA
multiples assumes comparable
reduction for rent in computing
EBITDA from EBITDAR
• The lower practical limit for
common equity value would be $0,
so in cases where the number
shown is negative, and assuming
the asset or entity values
estimated, other portions of the
capital structure would experience
value impairments so as to reflect
a zero or nominal positive value for
the common equity
Monroe trades at 14.7x aggregate
value / consensus 2016E EBITDA.
Consensus EBITDA of $44.5MM is
23% above management's projected
$36.2MM EBITDA. Monroe's multiple
implied by management's EBITDA
estimate is 18.1x
Fully Diluted Share Count
Common Stock
LTIP Units
Membership Units
Restricted Stock
Dilution from Stock Options
Dilution from Warrants
Shares Before Warrants
Warrant Dilution at Current Share Price
Share Price as of 03/11/16
Warrants
Exercise Price
Dilution (5)
Total Shares Outstanding
Dependent on Price
35.9
34.7
0.9
0.1
02
Morgan Stanley
$1.63
12.5
$6.00
35.9
MONROE VALUATION
2 Trading Comparables Analysis
Implied Monroe Valuation
$MM, as of 12/31/2015
EBITDAR
Clift and Hudson Rent
Adj. EBITDA (¹)
Peers' Multiple
Implied Value
Plus: NOLS (2)
Plus: PV of Lost Contracts (Termination & Mgmt Fees)
Plus: Cash
Implied Gross Value
Less: Property Debt
Less: Liability to Subsidiary Trust
Less: Restaurant Lease Note
Less: Preferred Stock
Less: Preferred Stock Accrued Dividends
Less: Sasson / Masi Default Interest
Total Debt +Preferred (4)
Net Value
(3)
Diluted Shares
$ / Share
Incremental EBITDA to Achieve 3/11/16 Share Price of $1.63
$/Share (w/o NOLS)
Low
44.3
(8.1)
36.2
9.4x
341
12 18
371
2016
Mid
44.3
(8.1)
(8.1)
36.2
12.6x
455
23
47
12
12
18
18
456
531
(422)
(422)
(50) (50)
(5)
(5)
(75)
(58)
(3)
High
44.3
36.2
11.1x
403
(422)
(50)
(5)
(75)
(58)
(3)
(613)
(613)
(242)
(158)
35.9
35.9
35.9
($6.74) ($4.38) ($2.29)
$19.4MM
($6.74) ($5.03) ($3.59)
(75)
(58)
(3)
(613)
(82)
Source SNL Financial, Capital IQ, Morgan Stanley and Company reports
Notes
1. EBITDA represents management projections, excludes $1.8MM of fees from lost contracts
2. NOL asset valued as 0 % (low), 50% (mid) and 100% (high) of the total present value of Monroe accumulated NOLS as of 12/31/2015
3. Preferred stock accrued dividends as of 3/31/2016
Strictly Confidential
Low
48.6
(8.1)
40.5
8.9x
359
2017
48.6
(8.1)
40.5
10.4x
422
23
12
18
475
(422)
(50)
(5)
(75)
(58)
(3)
(613)
(139)
35.9
35.9
($6.25) ($3.85) ($1.90)
$18.9MM
($6.25) ($4.50) ($3.20)
12
18
389
(422)
(50)
(5)
(75)
(58)
(3)
(613)
(224)
35.9
Mid
High
48.6
4. Total Debt and Preferred excludes capital leases at Clift and Hudson; EBITDA is net of rent expense for both leases; Company has written down equity value in JV interest of
Mondrian South Beach to $0. JV interest and associated debt excluded from this analysis
5. Dilution from assumed exercise of 12.5MM warrants with $6.00 strike price (if in-the-money)
(8.1)
40.5
11.6x
469
47
12
18
545
(422)
(50)
(5)
(75)
(58)
(3)
(613)
(68)
19View entire presentation