LionTree Investment Banking Pitch Book
Luna Snapshot
Summary Trading Valuation (as of 6/13/2016)
(Smm, unless indicated)
Share Price Market ($)
Equity Value
Plus: Net Debt @ 3/31/16²
Plus: Minority Interests @ 3/31/16
Less: Equity Investments @ 3/31/16³
Gross Enterprise Value
Less: Value of Tax Attributes
Adj. Enterprise Value
EV/
FY 2016A EBITDA (Pre-SBC)
FY 2017E EBITDA (Pre-SBC)
FY 2016A EBITDA (Post-SBC)
FY 2017E EBITDA (Post-SBC)
Leverage
Net Debt/FY 2017E EBITDA
Net Debt / FY 2017E EBITDA (Adjusted for Startup Costs)
Credit Ratings
Metric
(Smm)
118
192
Holder Name
MHR
Capital Research & Manag, Co. (World Investors)
Fidelity
Capital Research & Manag. Co. (Global Investors)
The Vanguard Group
Naya Capital Management UK Ltd.
Discovery Communications
Liberty Global
Kornitzer
JCM
Top 10 Holders
40
106
Top 10 Shareholders in Luna
Shares
30.2
8.8
8.5
7.8
7.4
5.4
5.0
5.0
4.6
87.2
Source: Public company filings, Wall Street research
Notes:
Gross
Multiple
29.6x
18.2x
86.9x
33.0x
Mkt Value
(Smm)
643
188
180
167
158
116
106
106
98
1,856
Draft Working Materials - Subject to Change
$21.25
3,250
788
91
(634)
3,495
(769)
2,726
Adjusted
Multiple
23.1x
14.2x
67.8x
25.7x
3.1x
4.8x
BB-/Ba3
% OS
19.8%
5.8%
5.5%
5.1%
4.8%
3.6%
3.3%
3.3%
3.0%
2.9%
57.0%
FY 2016A Revenue Breakdown ($mm)
FY 2016A Revenue by
Segment
$670,
29%
Motion Pictures
Television Production
$1,678,
71%
FY 2016A Revenue by
Geography
$104,
36%
$797,
34%
United States
Other
FY 2016A Contribution Breakdown ($mm)
$1,550,
66%
$184,
64%
Motion Pictures
Television Production
1) Based on fully diluted shares outstanding using treasury stock method; convertible debt treated on an as-if converted basis with appropriate dilutive impact to shares outstanding for in the money
converts; based on 147.2mm basic shares outstanding, 16.0mm in-the-money options outstanding (at WAEP of $23.83) and 1.6mm RSUS
2) Net debt excludes the value of production loans
Equity in affiliates assumes Epix valued at 10.0x multiple based on assumed 2016E EBITDA of $104mm, implying a $322mm value for Luna's 31% stake; assumes TVGN valued at cost of $125mm, Defy
LionTree Media Celestial Tiger stakes valued at $65mm; Satum stake based on market prices
3)
4) Includes net present value of difference between Luna actual tax rate given Canadian incorporation vs. peer normalized tax rate, incorporating value of existing NOLS
5) Includes equity income for leverage purposes
17View entire presentation