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.
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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 periodView entire presentation