Bank of America Investment Banking Pitch Book slide image

Bank of America Investment Banking Pitch Book

Summary of Changes Compared to July 14 th Special Committee Materials Pioneer Forecast Valuation Change ■ Updated financial results for FY2014 ▪ Total revenue increased from $803mm to $811mm ■ Storm revenue increased from $63mm to $64mm ■ EBITDA increased from $67mm to $71mm I Adjusted EBITDA increased from $72mm to $76mm Increased normalized year capital expenditures from $25 million to $27 million Decreased change in working capital in the terminal year from ($4) million to ($3) million ■ Updated market data as of August 1, 2014 ■ Reduced EV/EBITDA multiples for selected publicly traded companies analysis ▪ CY2014: from 7.0x-8.0x to 6.5x-7.5x ■ CY2015: from 6.0x-7.0x to 5.5x-6.5x Expanded EV/EBITDA exit multiples for LBO analysis from 8.0x-9.0x to 7.0x-9.0x Source: Pioneer Bose Cose as of April 9, 2014. 2014E figuras updated to reflect revised management estimates as of August 1 2014. 11 IOX For more investment banking materials, visit www.10xebitda.com Commentary Bank of America Merrill Lynch ■ Management provided updated estimates for FY2014 financial results on August 1, 2014 1 2015-2018E forecast remains unchanged ■ Management provided refined ca pex estimate to also include $2 million for IT, financial system and other items in addition to $25 million for fleet maintenance ■ Working capital change aligned with lower perpetual growth rate as compared to the projected period as suggested by management ■ Multiples range brought in line with current trading levels of selected publicly traded companies and Pioneer Multiples range to reflect potential IPO exit in addition to a sale of the Company at the end of the LBO holding period
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