Bank of America Investment Banking Pitch Book
Implied Transaction Multiples
Kenneth Cole Productions
Share Prices
Premium / (Discount) to: Closing Share Price ($14.64) (6/4/12)
Unaffected Share Price ($13.07) (2/23/12)
45-Day Average ($11.94)
52-Week High ($13.98) (2/25/11)
Diluted Share Count
Implied Equity Value
Plus: Debt
Less: Cash
Implied Enterprise Value
Implied Enterprise Value as a Multiple of
Sales
Share Price as a Multiple of
Adjusted EPS
LTM (3/31/12)
2012E
2013E
Adjusted EBITDA LTM (3/31/12)
2012E
2013E
2012E
2013E
Source: Public filings and Kenneth Cole Productions management projections
Note: Dollars in millions csopt per she tulus.
Metrics:
$478
487
544
$24
21
30
$0.40
0.60
(3)
Bundened for stock-based compensation and adjusted for one-time expesses and impairment charges
(6) Adjusted for one-time items and normalt
KCP Unaffected
Closing
Share Price
$13.07
3
(11%)
0%
9%
(7%)
19.112
$250
0
(49)
$201
0.42x
0.41
0.37
8.2x
9.4
6.6
32.7x
21.6
Per Share
Consideration
$15.25
4%
17%
28%
9%
19.259
$294
0
(49)
$245
0.51x
0.50
0.45
10.0x
11.4
8.1
(1) Closing share price on February 23, 2012, the last trading day prior to announcement that Kenneth Cole sabwitted an initial offer to acquire KCP for $15.00 pers.
(2) Based on the 45 days and 52 avcks prior to February 23, 2012, the last trading day prior to announcement fiset Kenneth Cole submitted an initial offer to acquire KCP for $15.00 per share.
(3) Based on 10.3 mon class A shares and 8.0 million des 8 shares outstanding 2.5 million options cutstanding with a uvighted average exercise price of $16.24 per share (steke prices ranging from $5.36-534.27 per share
and 0.5 million RSUS. Calculated pursuant to the treasury stock metal Assames all options and stock awards outstanding vest open change of control
Projectal debt and cesh balances as of March 31, 2012.
38.2x
25.2
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