Bank of America Investment Banking Pitch Book
Preliminary Indication of Interest Received
Preliminary Summary Valuation
Equity Value per Share
$25.00
7
20.00
15.00
10.00
5.00
0.00
H
T
(2)
(3)
(4)
(5)
Reference Points
$15.95
$8.72
52-Week
Low / High
Closing Price
Low
11/05/13
High
05/03/13
52-Wk VWAP
$11.72
$11.75
$9.25
Present Value of
Analyst
Price Targets (3)
Price Targets
$10.00 $13.00
Low
Jefferies
High
FBR & Janney
Montgomery Scott
$11.25
$9.00
CY'14E EBITDA
Multiple Range
7.0x - 8.0x
CY'14E EBITDA
$75 mm
$11.75
Selected Publicly
Traded Companies
$9.25
LOX For more investment banking materials, visit www.10xebitda.com
Pioneer Base Case (¹)
CY'15E EBITDA
Multiple Range
6.0x - 7.0x
CY'15E EBITDA
$89 mm
FY2014E estimates adjusted to reflect actual Q3 Fy2014 results and calendarized where appropriate.
Assumes net debt of $192 million as of June 30, 2014
$17.50
$10.00
DCF Analysis
(Base Case)
Discount Rate
8.0% 10.0%
Term. Growth Rate
2.5% - 3.0%
Impl. Exit Multiple
6.1x - 9.0x
$12.00
$10.00
Selected
Precedent
Transactions
Multiple Range
75x - 8.5x
FY'14E EBITDA
$69 mm
$14.50
$11.75
LBO Analysis
(Base Case)
Leverage
5.0x LTM EBITDA
Target IRR
20.0% - 25.0%
Exit Multiples
8.0x - 9.0x
Pioneer Sensitivity Case (2)
$20.00
Source: Public filings, Pioneer Base Case and Pioneer Sensitivity Case as of April 9, 2014, and FactSet as of April 25, 2014.
Note: All per share figures rounded to nearest 50.25, except 52-Week Low/Hign. Based on 31.921 million common shares outstanding, 2.537 million options at a strike price of $11.49 per share and 0.379 million RSUs, per Pioneer
Management and accounted for using the treasury stock method and as of March 31, 2014. Assumes $234 million in net debt as of March 31, 2014.
Based on Pioneer Management "Base Case" forecast as prepared by Pioneer management ("Pioneer Bose Cose"), which as revised on April 9, 2014, includes $75 milion of normalized storm revenue at a 30% grass margin for
2015-2018 and the following "New Opportunities"-Opportunity 6, Opportunity 3, Opportunity 4 and Opportunity 1, which collectively provides FY2015 revenue and EBITDA of 532mm and 52mm respectively.
Based on Management Sensitivity Cose" forecast as prepared by Pioneer management ("Pioneer Sensitivity Case"), which in addition to the Pioneer Base Cose as of April 9, 2014 includes two additional "New Opportunities"
of Opportunity 7 and Opportunity 2, which collectively provide incremental FY2015 revenue and EBITDA of $16mm and $2mm, respectively.
Discounted by one period at cost of equity of 9.5%.
$11.75
Bank of America
Merrill Lynch
DCF Analysis
(Sensitivity Case)
Discount Rate
8.0% - 10.0%
Term. Growth Rate
2.5% - 3.0%
Impl. Exit Multiple
6.2x - 9.3x
$16.75
$13.50
LBO Analysis
(Sensitivity Case)
Leverage
5.0x LTM EBITDA
Target IRR
20.0% - 25.0%
Exit Multiples
8.0x - 9.0x
Court Square
Offer: $12.75
Current Share
Price: $9.98View entire presentation