Spreadsheet: jeff_dasovich__14234__Vons Model
Sheet: DCF

Appendix 6
Discounted Cash Flow Analysis
 | Actual | Actual | Assumptions | Forecast | Forecast | Forecast | Forecast | Forecast | Forecast | Forecast | Forecast | Forecast | Forecast
FISCAL YEAR ENDING
Sales
Operating expenses:
Cost of sales, buying, occupancy
Selling and administrative
Depreciation and amortization |  |  | calc as % of beginning PPE
Goodwill amortization |  |  | flat | 15
Operating income
Interest expense
Income before tax
Provision for income taxes
Net income
Add: Int Exp (1-t)
EBI (NOPLAT)
Add: Depreciation
(Inc) Dec in other assets |  |  | from B/S
Inc. (Dec.) in other liabilities | 0 | 0 | from B/S
Inc. in deferred taxes | 1.5 | 11.2 | from B/S
WCFO (excl. int.)
(Inc.) Dec. in A/R | 13.7 | -13.3 | from B/S
(Inc.) Dec. in Other C. Assets |  |  | from B/S
Inc. (Dec.) in A/P | 11.7 | 7.2 | from B/S
Inc. (Dec.) in Other Accruals |  |  | from B/S
CFO (excl. int.)
Less: Capital Expenditures, net | -91.2 | -99.3
FCF (free cash flow)
Terminal value (mult of EBITDA)
Total free cash flow
PV of total free cash flows
Less: PV (debt)
Plus: idle assets (liabs) |  |  |  | 0
PV of shareholders' equity (in millions)
Shares outstanding
Price per share
Appendix 6
Discounted Cash Flow Analysis
FISCAL YEAR ENDING |  |  | Notes
Cash and cash equivalents
Receivables
Inventories
Deferred taxes
Other current assets
Total current assets
Net PPE
Goodwill |  |  | reduce by amort.
Other assets
TOTAL ASSETS
Accounts payable
Accrued liabilities
Total [NAME] (excl L/T Debt)
Accrued self-insurance
Deferred income taxes
Other noncurrent liabilities
Capital lease obligations |  |  | reduce bal by amort of 3 per pd.
Debt (including S/T debt) |  |  | % of total assets
Total liabilities
Shareholders' equity |  |  | PLUG
TOT LIAB & NET WORTH
Tax Rate |  |  | Unreconciled Difference
Free Cash Flow
Deduct: Int. expense (net of tax) |  |  | Debt*cost of debt*(1-t)
Add: Increase in L/T debt |  |  | from B/S
Subtotal (net cash to Shrholdrs)
(Dividend) or New Equity |  |  | from B/S
¯Cash per SCF
¯Cash per B/S |  |  | from B/S
 |  |  | Unreconciled Difference
Net Income |  |  | (EBI- Int. after tax)
EBI
Return on Beg. Equity |  |  | (NI / Beg Sh. [NAME])
Profit Margin |  |  | (EBI / Sales)
Asset Turnover |  |  | (Sales / Avg. TA)
Leverage |  |  | ([NAME]. TA / Avg. SE) x (NI / EBI)
Return on Average Equity
Return on Assets |  |  | (EBI / Avg TA)
(note: white this out in the handout copy)
DCF Sensitivity Analysis
 |  |  |  | Terminal Value Multiple (x EBITDA)
 |  |  |  | 6 | 6.5 | 7 | 7.5 | 8
 |  |  | 0.085 |  | 52.96280581701063 | 55.80824012368137 | 58.65367443035212 | 61.49910873702288
 |  |  | 0.09 | 47.97357611469464 | 50.69114753031366 | 53.4087189459327 | 56.12629036155173 | 58.84386177717077
 |  |  | 0.095 | 45.92638196241415 | 48.52238235297867 | 51.11838274354317 | 53.71438313410768 | 56.31038352467218
 |  |  | 0.1 | 43.97085642759578 | 46.45124141238658 | 48.93162639717738 | 51.41201138196817 | 53.89239636675897
 |  | Discount | 0.105 | 42.10234341666509 | 44.47275174863733 | 46.84316008060956 | 49.21356841258179 | 51.58397674455401
 |  |  | 0.11 | 40.31644659463098 | 42.58221834317084 | 44.84799009171071 | 47.11376184025057 | 49.37953358879042
 |  | Rate | 0.115 | 38.60901370239726 | 40.77520731739078 | 42.9414009323843 | 45.10759454737781 | 47.27378816237135
 |  |  | 0.12 | 36.97612188951111 | 39.04753022014432 | 41.11893855077751 | 43.1903468814107 | 45.26175521204389
 |  |  | 0.125 | 35.41406399228927 | 37.39522932888188 | 39.37639466547449 | 41.3575600020671 | 43.3387253386597
 |  |  | 0.13 | 33.91933569238458 | 35.81456389481946 | 37.70979209725435 | 39.60502029968924 | 41.50024850212414
 |  |  | 0.135 | 32.48862349558797 | 34.30199726750638 | 36.1153710394248 | 37.92874481134322 | 39.74211858326164