Bank of America Investment Banking Pitch Book
Project PIONEER
Value Perspectives
3
2014 Adj. EBITDA as of Apr-14
Less: Underperformance
Revised Adj. EBITDA
QoE Adjustments:
Public Company
Klondyke / PVP
Other PELLC
Total QoE Adjustments
2014E CSC EBITDA
6/30/14E Net Debt Forecast as of Apr-14
Free Cash Flow Underperformance
6/30/14E Net Debt Forecast as of Jun-14
Plus: Debt-like Items
Current Estimated Total Net Debt
TEV (¹)
'14E Adj. EBITDA
¹14E Adj. EBITDA - Norm. Capex ($35mm)
TEV / EBITDA
TEV/ (EBITDA. - Capex)
Court Square
Perspective
583.1
(5.3)
$77.8
($1.1)
(3.0)
(0.8)
($4.8)
$73.0
$191.2
5.9
$197.1
10.3
$207.4
CSC Revised
($11.00)
$573
73.0
3.8.0
7.8x
15.1x
Management
Perspective
LOX For more investment banking materials, visit www.10xebitda.com
Source: Pioneer Management and Court Square presentation dated July 2, 2014.
Note: Dollars in milions, except par share figures.
Nat Debt as of 6/30/14E. Includes $3.8mm bonus payments accelerated to be paid at change of control.
503.1
(3.5)
$79.6
$79.6
$191.2
5.0
$196.2
$196.2
CSC Revised
($11.00)
$561
79.6
7.0x
12.6x
Per April Executive Presentation to Court Square
$79.6 is based on April and May actuals and latest June management flash as of July 5
Comments
For the calculation of Adj. EBITDA, Management reduced audit/internal controls costs by 50% or
*$900K for internal audit costs
These costs are associated with the CA job losses and are viewed as one-time/non-recurring
No details on this adjustment
Per April Executive Presentation to Court Square
At Original CSC LOI
($12.85)
$196.2 is latest Management estimate as of 7/3/14
Appears to include adjustment for RSI deferred compensation liability, which is disclosed in the
Pioneer 2013 Form 10-K and which is partially contained in the cash flow projections and for a
perceived multi-employer union pension underfunding obligation, which Management believes is
unlikely to be triggered.
$619
Bank of America
Merrill Lynch
83.1
48.1
7.4x
12.9xView entire presentation