Credit Suisse Investment Banking Pitch Book
3 Tax benefit analysis - no S382 limitation
($ in millions, except per share amounts)
EBIT
Tax shielding
NOLs used
% tax rate
Annual savings
Limitation on pre-tax income for NOL usage
Post-2022 NOL schedule
NOL starting balance
NOLS generated
NOLs expired
NOL usage
NOL ending balance
Sensitivities
Discount
rate (%)
13.0%
14.5%
16.0%
Discount
rate (%)
13.0%
14.5%
16.0%
2.0%
Source:
(1)
(2)
$91
268.550
$0.34
$82
265.758
$0.31
$73
265.295
$0.28
2.0%
$1.43
$0.34
$1.77
$1.05
$0.31
$1.36
2022A
$0.76
$0.28
$1.03
$601
Perpetuity growth rate
3.0%
$91
269.648
$0.34
$82
266.093
$0.31
$73
265.358
$0.28
Reconciliation to total equity value per share
Perpetuity growth rate
3.0%
$1.58
$0.34
$1.92
$1.15
$0.31
$1.46
2023E
($119)
$0.83
$0.28
$1.11
29%
$601
$119
$720
4.0%
$91
271.880
$0.33
$82
267.275
$0.31
$73
265.440
$0.28
4.0%
2024E
($104)
29%
$720
$104
$824
2025E
($64)
29%
$824
$64
$889
Implied net present value
Fully diluted shares(1)
Implied net present value per share
Implied net present value
Fully diluted shares(1)
Implied net present value per share
Implied net present value
Fully diluted shares(1)
Implied net present value per share
2026E
($13)
$1.75
Equity value per share standalone DCF
$0.33
Net present value per share - tax benefits
$2.09 Implied total equity value per share
$1.27 Equity value per share standalone DCF
$0.31 Net present value per share - tax benefits
$1.58 Implied total equity value per share
$0.92 Equity value per share - standalone DCF
$0.28 Net present value per share - tax benefits
$1.19
Implied total equity value per share
29%
$889
$13
$902
2027E
$59
47
29%
$13
$902
■
$47
■
Calendar year ended
2028E
$83
($47)
$854
67
29%
$19
$67
$854
($67)
Assumptions
$788
2029E
$110
88
29%
$25
$88
$788
($88)
$700
2030E
$136
109
29%
$31
$109
$700
($109)
$591
2031E
$163
130
29%
$37
$130
$591
($130)
$461
2032E
$188
Company filings, Bravo management, IRS bulletin as of 2/23.
Based on fully diluted shares derived from discounted cash flow analysis excluding tax benefits.
Per Bravo management, for the purposes of computing the maximum amount of tax savings usable each year beyond 2033, top line assumed to grow at 3.0% in perpetuity with constant EBITDA and D&A margin.
151
29%
$43
$151
$461
($0)
($151)
$310
2033E
$212
170
29%
$48
$170
■ DCF discounted to 12/31/2022
Mid-year discounting convention
Assumes beginning tax asset balance of $600.7m as of
12/31/22 ($589.0m federal and state NOLs and $11.7m R&D
tax credits) per Bravo management
$310
($1)
($170)
$140
Implied net present value of tax benefits assumes full utilization
of NOLs by 2034 per Bravo management (taking into account
NOL expiration) (2)
Limitation on pre-tax income for NOL usage is equal to 80% of
pre-tax income
Assumes unlevered free cash flow projections discounted using
assumed 13.0%-16.0% WACC
Assumes tax rate of 29.0% per Bravo management
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