Scott-Macon Aerospace, Defense and Government (April 2018) Newsletter

SCOTT-MACON, LTD
April 2018
2© Copyright 2018 SCOTT-MACON, LTD.
We are pleased to present you with the April 2018 Edition of the
Scott-Macon Aerospace, Defense and Government Services
monthly newsletter! Our team strives to provide industry
professionals such as yourself with the critical market information
necessary to execute your strategic goals and initiatives. Please
let us know if you would like to discuss any of the emerging
trends presented in this review and how they can potentially
impact your firm.
Our team can help you with the following services:
 Mergers and Acquisitions
- Sale of company
- Acquisition of target companies
 Private Debt and Equity Financing
 Dividend Recapitalization
We look forward to speaking to you soon!
Best,
Michael
Michael N. Papazis
Managing Director
Aerospace, Defense & Government Services
Office: (212) 755-8200
Fax: (212) 583-9262
mpapazis@scott-macon.com
A note from SCOTT-MACON

Prepared by SCOTT-MACON, LTD.
Table of Contents
Section 1 Market Snapshot
Review of key valuation and deal trends analyzed on
an Monthly and Last Twelve Month (LTM) basis
4
Section 2 Public Trading Comparables
List of operating metrics and valuation multiples for
public companies in selected sub‐segments of the
Aerospace, Defense & Government Services (ADG)
sectors
6
Section 3 M&A Transactions
List of relevant transactions with disclosed values
which occurred in the last month segmented by
Aerospace, Defense or Government Services
9
Section 4 Recent Contracts
List of selected major government contracts that
have been awarded in the last month
18
Section 5 Key Aerospace & Defense Stats
Review of key trends in the aerospace and defense
sectors
22
Section 6 About Scott‐Macon
Brief overview on Scott‐Macon and their ADG
investment banking practice
25

SECTION 1: MARKET SNAPSHOT

SCOTT-MACON, LTD
April 2018
Market Snapshot
Share Price Performance
Trading Valuation (TEV / LTM EBITDA)
M&A TransactionsM&A Transactions
Trading Valuation (TEV / LTM EBITDA)
Share Price Performance
Monthly as of April 2018 LTM as of April 2018
87
89
91
93
95
97
99
101
103
105
107
Mar-29-2018
Mar-31-2018
Apr-02-2018
Apr-04-2018
Apr-06-2018
Apr-08-2018
Apr-10-2018
Apr-12-2018
Apr-14-2018
Apr-16-2018
Apr-18-2018
Apr-20-2018
Apr-22-2018
Apr-24-2018
Apr-26-2018
Apr-28-2018
Apr-30-2018
S&P 500 SM Aerospace
SM Government Services SM Defense
 -1.9 %
 1.4 %
 0.9 %
 1.2 %
74
84
94
104
114
124
134
144
154
164
Apr-28-2017
May-28-2017
Jun-28-2017
Jul-28-2017
Aug-28-2017
Sep-28-2017
Oct-28-2017
Nov-28-2017
Dec-28-2017
Jan-28-2018
Feb-28-2018
Mar-31-2018
Apr-30-2018
S&P 500 SM Aerospace
SM Government Services SM Defense
 31.1 %
 51.8 %
 11.1 %
 16.3 %
8.50x
9.00x
9.50x
10.00x
10.50x
11.00x
11.50x
12.00x
12.50x
13.00x
13.50x
Mar-29-2018
Mar-31-2018
Apr-02-2018
Apr-04-2018
Apr-06-2018
Apr-08-2018
Apr-10-2018
Apr-12-2018
Apr-14-2018
Apr-16-2018
Apr-18-2018
Apr-20-2018
Apr-22-2018
Apr-24-2018
Apr-26-2018
Apr-28-2018
Apr-30-2018
SM Aerospace SM Government Services SM Defense
 1.1 %
 -2.6 %
 7.6 %
7.50x
8.50x
9.50x
10.50x
11.50x
12.50x
13.50x
Apr-28-2017
May-28-2017
Jun-28-2017
Jul-28-2017
Aug-28-2017
Sep-28-2017
Oct-28-2017
Nov-28-2017
Dec-28-2017
Jan-28-2018
Feb-28-2018
Mar-31-2018
Apr-30-2018
SM Aerospace SM Government Services SM Defense
 6.8 %
 18.0 %
 9.4 %
15
23
17
15
11
9
43
47
0
10
20
30
40
50
60
30-Apr-17 30-Apr-18
NumberofDeals
Aerospace Defense Government Services
 -18.2 %
 -11.8 %
 53.3 %
 -10.3 %
 -4.0 %
 -14.9 %
289 246
301
289
117
105
707
640
0
100
200
300
400
500
600
700
800
LTM-Apr-17 LTM-Apr-18
NumberofDeals
Aerospace Defense Government Services

SECTION 2: PUBLIC COMPARABLES

SCOTT-MACON, LTD
April 2018
Public Comparables
Aerospace Public Comparables*
Government Services Public Comparables*
% of 52 Market Total Enterprise TEV / % Change TEV / LTM EBITDA TEV / % Change TEV / LTM Rev.
Aerospace OEMs Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year
Airbus SE $117.60 97.4% $91,030.3 $91,099.1 15.4 x 6.9% -50.3% 1.2 x 11.0% 39.1%
Boeing Company 333.56 89.8 194,325.7 196,962.7 15.4 -3.9 21.0 2.1 0.1 70.5
Bombardier Inc. 3.10 95.4 7,831.8 15,784.6 19.2 6.3 5.9 1.0 6.3 53.2
Embraer S.A. 6.35 90.7 4,661.3 5,648.4 10.9 2.2 22.9 1.1 2.2 48.1
Median 93.1% $49,431.1 $53,441.8 15.4 x 1.2% -3.7% 1.1 x 6.6% 43.3%
Mean 93.3% $74,462.3 $77,373.7 15.2 x 2.9% 6.4% 1.3 x 3.9% 54.9%
Aerospace Systems / Equipment Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year
AAR Corp. $43.30 94.3% $1,469.3 $1,639.8 11.5 x -1.6% 13.1% 0.9 x -1.6 11.2%
AMETEK, Inc. 69.80 88.0 16,161.4 17,689.4 15.9 -7.5 8.1 4.1 -7.5 6.9
Astronics Corporation 36.58 74.0 1,027.1 1,281.0 17.4 -1.4 60.5 2.1 -1.4 21.1
CAE Inc. 18.93 96.6 5,078.6 5,683.6 13.2 1.1 16.3 2.6 1.1 8.3
Crane Co. 83.64 81.5 4,993.1 5,762.0 11.2 -0.2 6.3 2.0 -1.1 9.5
Esterline Technologies Corporation 71.85 70.0 2,114.3 2,570.1 9.0 1.5 -20.4 1.3 -2.3 -22.4
HEICO Corporation 87.85 94.3 8,289.6 9,115.9 NM 1.3 32.9 5.7 1.3 34.4
Héroux-Devtek Inc. 11.46 93.5 414.9 461.5 11.4 -1.7 20.4 1.5 -1.7 9.2
Meggitt PLC 6.50 89.1 5,020.2 6,347.3 8.7 7.0 -24.3 2.3 7.0 -4.7
Moog Inc. 81.97 87.3 2,933.5 3,584.3 10.9 0.5 16.0 1.4 -0.1 9.0
MTU Aero Engines AG 172.66 91.2 8,892.1 10,087.1 11.4 4.0 11.8 1.7 4.0 27.0
Textron Inc. 62.14 94.2 15,910.2 19,140.2 12.4 1.6 20.3 1.3 4.1 15.5
TransDigm Group Incorporated 320.57 96.1 16,732.6 27,635.6 16.6 2.6 9.5 7.8 2.6 11.9
Woodward, Inc. 71.94 80.6 4,425.7 4,956.0 13.5 -5.1 -5.5 2.3 -2.2 -2.3
Median 90.2% $5,006.6 $5,722.8 11.5 x -1.6% 3.4% 2.0 x -1.3% 15.1%
Mean 87.9% $6,675.9 $8,282.4 12.5 x -0.4% 5.2% 2.6 x 0.2% 10.9%
Aerospace Structures Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year
CPI Aerostructures, Inc. $9.55 88.8% $84.8 $115.2 10.7 x -1.5% NA 1.4 x -1.5% 33.6%
Ducommun Incorporated 29.09 81.8 329.9 543.8 11.6 -2.6 24.3 1.0 -2.6 9.8
GKN plc 6.39 96.3 11,026.3 12,303.4 9.4 0.8 40.7 0.9 0.8 18.3
Hexcel Corporation 66.47 95.6 5,947.4 6,737.6 14.4 0.9 19.5 3.3 -0.1 20.4
Kaman Corporation 60.64 93.0 1,685.3 2,055.6 12.8 -2.0 28.0 1.1 -2.0 22.5
Latécoère S.A. 6.50 89.7 615.3 645.0 15.8 -14.3 27.9 0.8 6.8 39.2
Magellan Aerospace Corporation 15.10 88.4 878.8 915.1 7.6 -0.9 -8.8 1.2 -0.9 -9.1
Senior plc 4.07 95.2 1,698.7 1,912.2 11.5 -1.5 23.8 1.4 -1.5 13.8
Spirit AeroSystems Holdings, Inc. 80.37 76.4 9,212.9 9,941.1 12.6 -3.7 65.6 1.4 -3.7 34.3
Triumph Group, Inc. 23.65 68.0 1,174.7 2,485.0 7.1 -3.0 NA 0.8 -3.0 -3.1
Median 89.3% $1,430.0 $1,983.9 11.5 x -2.1% 24.0% 1.2 x -1.4% 18.1%
Mean 87.3% $3,265.4 $3,765.4 11.3 x -3.5% 20.0% 1.3 x -0.9% 17.3%
Total Aerospace Median 90.3% $4,827.2 $5,666.0 11.6 x -2.6% 9.4% 1.4 x -0.8% 12.6%
Total Aerospace Mean 88.5% $15,141.6 $16,539.4 12.5 x -0.9% 9.4% 2.0 x 0.3% 15.5%
Government Services Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year
Booz Allen Hamilton Holding Corp. $39.63 96.4% $5,748.8 $7,291.7 12.5 x 1.8% -1.2% 1.2 x 1.8% 1.9%
CACI International Inc 151.05 94.2 3,720.0 4,816.2 12.9 -0.2 15.1 1.1 -0.2 10.8
CGI Group Inc. 58.02 96.3 16,492.4 17,793.3 12.5 0.2 9.3 2.1 0.2 6.6
Cyient Limited 11.48 97.9 1,292.0 1,113.0 14.4 2.9 36.7 1.9 3.9 33.4
Engility Holdings, Inc. 25.42 71.3 939.4 1,874.2 10.2 2.2 -5.8 1.0 2.2 -2.9
ICF International, Inc. 67.10 97.2 1,261.2 1,455.6 12.9 13.5 33.2 1.2 13.5 29.4
KeyW Holding Corp. 7.74 73.7 381.1 629.7 17.5 -0.9 -18.3 1.4 -0.9 -25.9
Leidos Holdings, Inc. 64.23 91.6 9,740.7 12,474.7 12.1 -1.4 -28.0 1.2 -1.4 -20.4
ManTech International Corp. 59.09 94.9 2,334.1 2,355.6 17.7 7.2 65.9 1.4 7.2 67.5
MAXIMUS, Inc. 67.63 93.0 4,411.1 4,232.7 11.3 1.4 6.4 1.7 1.4 4.3
Navigant Consulting, Inc. 21.39 87.4 970.1 1,094.6 8.7 10.4 -1.3 1.2 10.4 -12.6
QinetiQ Group plc 3.17 71.4 1,770.9 1,502.1 6.5 14.1 -35.3 1.3 14.1 -27.3
Science Applications International Corp. 85.79 96.9 3,625.6 4,505.6 14.3 6.0 18.9 1.0 6.0 11.7
Serco Group plc 1.32 77.9 1,443.5 1,692.5 15.0 30.9 41.4 0.4 7.8 -11.1
Vectrus, Inc. 36.00 86.8 403.9 403.7 9.3 -2.5 40.5 0.4 -2.5 37.1
VSE Corp. 51.29 85.6 558.1 740.0 9.6 1.6 8.7 1.0 0.7 6.7
Median 92.3% $1,607.2 $1,783.4 12.5 x 5.8% 18.1% 1.2 x 4.8% 9.6%
Mean 88.3% $3,443.3 $3,998.5 12.3 x 4.9% 14.7% 1.2 x 3.7% 1.7%
Engineering & Construction Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year
AECOM $34.44 86.3% $5,481.8 $8,797.2 9.3 x -2.1% 5.6 0.5 x -2.1% -8.0%
Fluor Corp. 58.95 94.9 8,247.8 8,051.6 12.0 3.1 53.0 0.4 3.1 12.8
Jacobs Engineering Group Inc. 58.09 80.5 8,229.7 9,855.9 14.9 -1.5 50.1 1.0 -1.5 61.5
KBR, Inc. 16.69 76.9 2,347.0 2,560.0 7.9 6.4 -60.0 0.6 11.6 19.6
Tetra Tech, Inc. 48.40 90.6 2,703.2 2,978.1 13.0 -1.0 -1.4 1.4 -1.0 2.4
Median 86.3% $5,481.8 $8,051.6 12.0 x 3.1% 20.9% 0.6 x 11.6% 19.6%
Mean 85.9% $5,401.9 $6,448.6 11.4 x 0.5% -4.0% 0.8 x 1.0% 15.0%
Total Government Services Median 90.6% $2,347.0 $2,560.0 12.5 x 7.6% 18.0% 1.2 x 17.3% 17.9%
Total Government Services Mean 87.7% $3,909.6 $4,581.8 12.1 x 3.9% 9.8% 1.1 x 3.3% 3.7%
* As of Monday, April 30, 2018

SCOTT-MACON, LTD
April 2018
Public Comparables (Continued)
Defense Public Comparables*
Defense Primes Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year
BAE Systems plc $8.41 89.5% $26,826.1 $28,089.4 10.2 x 5.0% -10.0% 1.1 x 5.0% -8.3%
Boeing Company 333.56 89.8 194,325.7 196,962.7 15.4 -3.9 21.0 2.1 0.1 70.5
General Dynamics Corporation 201.31 87.5 59,795.8 61,942.8 13.5 -6.5 9.5 2.0 -7.6 3.8
Leonardo S.p.a. 11.60 59.7 6,665.5 10,045.1 5.5 1.6 -11.8 0.7 1.6 -23.1
Lockheed Martin Corporation 320.84 88.4 91,609.3 103,510.3 14.6 -8.5 3.9 2.0 -5.0 6.9
Northrop Grumman Corporation 322.04 89.2 56,158.7 61,049.7 15.6 -9.4 19.9 2.3 -7.0 19.3
Raytheon Company 204.94 89.2 58,869.0 61,664.0 16.0 -5.9 26.3 2.4 -5.3 21.0
Thales S.A. 126.78 100.0 26,906.8 23,624.5 10.3 -4.1 -4.0 1.2 0.0 0.6
Median 89.2% $57,513.8 $61,356.8 14.0 x -7.5% 12.4% 2.0 x -4.4% 28.7%
Mean 86.7% $65,144.6 $68,361.1 12.6 x -5.1% 8.6% 1.7 x -3.6% 12.5%
Defense Systems Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year
Aerojet Rocketdyne Holdings, Inc. $27.94 77.1% $2,111.1 $2,172.5 11.7 x -0.1% -2.2% 1.5 x 31.3% 39.1%
AeroVironment, Inc. $54.50 92.4% $1,279.5 $1,057.7 NM 24.9% NA 1.3 x -53.4% -37.5
Cobham plc 1.58 76.6 3,767.4 4,297.0 10.8 -5.6 NA 1.3 -20.2 -23.7
Cubic Corporation 61.75 91.9 1,681.0 1,919.8 NM NM NM 4.0 NM NM
Curtiss-Wright Corporation 128.04 89.3 5,665.0 6,004.0 13.7 -4.9 21.2 4.0 45.3 NM
FLIR Systems, Inc. 53.55 97.7 7,439.2 7,408.0 18.9 6.5 33.0 1.5 -59.5 -49.2
Huntington Ingalls Industries, Inc. 243.21 87.9 10,887.8 11,465.8 10.8 -5.4 14.2 1.7 1.5 18.6
Kongsberg Gruppen ASA 24.56 96.3 2,935.5 2,986.5 18.2 4.0 14.9 1.9 18.9 64.2
L3 Technologies, Inc. 195.88 89.6 15,334.5 18,086.5 13.6 -5.0 2.4 1.8 -8.0 19.6
Orbital ATK, Inc. 132.38 98.4 7,651.3 8,717.3 12.7 -0.2 15.5 3.4 NM NM
Rockwell Collins, Inc. 132.54 94.9 21,767.1 28,472.1 15.8 -10.6 3.7 1.5 -59.8 -57.1
Safran SA 117.68 100.0 51,299.8 49,465.7 11.1 13.9 22.8 2.4 13.9 17.8
Textron Inc. 62.14 94.2 15,910.2 19,140.2 12.4 1.6 20.3 1.3 4.1 15.5
Median 92.4% $7,439.2 $7,408.0 12.7 x -5.7% 9.8% 1.7 x -9.8% 5.8%
Mean 91.2% $11,363.8 $12,399.5 13.6 x -3.7% 11.8% 2.1 x 0.2% 17.7%
Defense Electronics / Equipment Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year
AMETEK, Inc. $69.80 88.0% $16,161.4 $17,689.4 15.9 x -7.5% 8.1% 4.1 x -7.5% 6.9%
Chemring Group plc 2.88 95.4 804.9 915.0 8.4 3.9 -9.7 1.2 3.9 -5.5
Comtech Telecommunications Corp. 30.59 92.9 722.5 876.2 13.9 1.9 36.2 1.7 1.9 NM
Crane Co. 83.64 81.5 4,993.1 5,762.0 11.2 -0.2 6.3 2.0 -1.1 9.5
Ducommun Incorporated 29.09 81.8 329.9 543.8 11.6 -2.6 24.3 1.0 -2.6 9.8
Elbit Systems Ltd. 115.73 77.5 4,947.8 5,213.2 13.1 -1.0 8.0 1.6 -1.0 6.4
Harris Corporation 156.42 91.7 18,571.7 22,068.7 16.3 -2.5 42.7 3.7 -2.5 51.8
Héroux-Devtek Inc. 11.46 93.5 414.9 461.5 11.4 -1.7 20.4 1.5 -1.7 9.2
Kratos Defense & Security Solutions, Inc. 10.01 71.9 1,036.2 1,200.9 NM -2.4 -54.0 1.6 -2.4 4.5
Meggitt PLC 6.50 89.1 5,020.2 6,347.3 8.7 7.0 -24.3 2.3 7.0 -4.7
Mercury Systems, Inc. 32.08 58.3 1,547.6 1,698.4 19.0 -28.3 -26.8 3.7 -27.6 -17.5
Moog Inc. 81.97 87.3 2,933.5 3,584.3 10.9 0.5 16.0 1.4 -0.1 9.0
OSI Systems, Inc. 64.02 66.2 1,157.0 1,440.3 8.2 -5.0 -40.7 1.4 -4.2 -21.7
Teledyne Technologies Incorporated 187.09 92.9 6,678.7 7,680.7 16.3 0.0 11.4 2.9 0.0 20.4
Ultra Electronics Holdings plc 19.38 64.6 1,444.2 1,546.7 8.7 0.8 -28.7 1.4 0.8 -34.1
Viasat, Inc. 63.98 79.7 3,767.5 4,629.3 NM -2.2 67.5 2.9 -2.2 4.9
Woodward, Inc. 71.94 80.6 4,425.7 4,956.0 13.5 -5.1 -5.5 2.3 -2.2 -2.3
Median 81.8% $2,933.5 $3,584.3 11.6 x -1.2% 0.6% 1.7 x 0.9% -8.7%
Mean 81.9% $4,409.2 $5,094.9 12.5 x 2.5% 4.0% 2.2 x -5.0% 3.9%
Homeland Security Price Wk High Value Value (TEV) LTM EBITDA 30 Day 1 Year LTM Rev. 30 Day 1 Year
Analogic Corporation 83.10 81.6 1,038.9 873.3 19.3 -15.5 70.0 1.9 -15.5 29.5
Elbit Systems Ltd. 115.73 77.5 4,947.8 5,213.2 13.1 -1.0 8.0 1.6 -1.0 6.4
MSA Safety Incorporated 86.84 94.8 3,327.2 3,679.4 14.0 -4.6 -6.6 2.9 -0.8 5.6
OSI Systems, Inc. 64.02 66.2 1,157.0 1,440.3 8.2 -5.0 -40.7 1.4 -4.2 -21.7
American Outdoor Brands Corporation 11.00 44.9 595.4 795.2 7.4 4.9 43.1 1.2 4.9 -21.3
Smiths Group plc 21.98 94.1 8,700.2 10,043.3 11.9 4.8 -1.4 2.3 4.8 1.7
Median 79.6% $2,242.1 $2,559.8 12.5 x 9.8% 3.3% 1.7 x -8.6% 5.9%
Mean 76.5% $3,294.4 $3,674.1 12.3 x 12.1% 6.3% 1.9 x -2.4% -0.1%
Total Defense Median 89.2% $4,970.4 $5,487.6 12.9 x 1.1% 6.8% 1.7 x -8.8% 1.5%
Total Defense Mean 84.8% $17,354.8 $18,562.3 12.8 x -0.5% 7.5% 2.0 x -2.9% 8.6%
* As of Monday, April 30, 2018

SECTION 3: M&A TRANSACTIONS

SCOTT-MACON, LTD
April 2018
M&A Transactions with Disclosed Values - LTM as of April 2018
Continued on Next Page
xx xx xx xxx EV / LTM
Announced Closed Buyer Target Target Sector EV Rev EBITDA
4/24/2018 Pending QinetiQ Group plc E.I.S. Aircraft Operations of E.I.S. Group Aerospace $86 3.5 x 13.0 x
4/24/2018 4/24/2018 LDC Precision Micro Ltd. Aerospace $31 1.5 x NA
4/23/2018 Pending Kroton Educacional S.A. Somos Educação S.A. Government
Services
$2,167 4.0 x 18.3 x
4/19/2018 Pending Valiant Integrated Services LLC Cubic Global Defense, Inc. and Omega
Training Group, Inc.
Defense $138 0.4 x NA
4/10/2018 Pending Tenneco Inc. Federal-Mogul LLC Aerospace $5,400 0.7 x 7.2 x
4/10/2018 Pending Eagle Enterprises, Inc. Hawker Pacific Airservices Limited Aerospace $250 NA NA
4/10/2018 Pending Ningxia Xinri Hengli Steel Wire
Rope Co., Ltd
Shanxi Huangcheng Xiangfu Aerospace
Automobile Manufacturing Co., Ltd.
Aerospace $74 NA NA
4/9/2018 Pending Cognosec AB Advantio Limited Defense $15 4.3 x 24.0 x
1/31/2018 4/2/2018 On Assignment, Inc. ECS Federal, Inc. Government
Services
$775 NA NA
2/12/2018 4/2/2018 General Dynamics Corporation CSRA Inc. Government
Services
$9,871 1.9 x 11.7 x
4/2/2018 4/2/2018 Skyline Domain Sdn Bhd Subang SkyPark Sdn Bhd Aerospace $19 NA NA
3/29/2018 Pending Tata Advanced Systems Limited Strategic Engineering Division of Tata Power Defense $343 0.4 x 5.1 x
3/27/2018 Pending Suplet Power Co., Ltd. Wuhan YongLi Technology Co.,Ltd. Defense $66 NA NA
3/23/2018 4/25/2018 Pacific Energy Limited Contract Power Australia Pty Ltd Government
Services
$70 NA NA
3/22/2018 4/11/2018 Elbit Systems Ltd. Universal Avionics Systems Corporation Aerospace $120 NA NA
3/20/2018 Pending Ryanair Holdings plc Laudamotion GmbH Aerospace $82 NA NA
3/19/2018 Pending Wärtsilä Oyj Abp Transas Marine Aerospace $259 1.5 x NA
3/19/2018 4/24/2018 TransDigm Group Incorporated Extant Components Group Holdings, Inc. Defense $525 NA NA
3/15/2018 3/15/2018 TransDigm Group Incorporated Kirkhill-TA Co. Defense $50 0.6 x NA
3/14/2018 Pending Addsino Co., Ltd. Aerospace Kaiyuan Technology Co., Ltd. Aerospace $36 NA NA
3/14/2018 Pending Addsino Co., Ltd. Nanjing Unary Information Technology Co.,
Ltd.
Aerospace $43 NA NA

SCOTT-MACON, LTD
April 2018
M&A Transactions with Disclosed Values - LTM as of April 2018 (Continued)
3/13/2018 Pending TCTM Financial FS LLC Wellman Dynamics Corporation Aerospace $21 NA NA
3/12/2018 4/4/2018 Patricia Industries Sarnova, Inc. Government
Services
$903 1.6 x NA
3/11/2018 Pending Elbit Systems Ltd. IMI Systems Ltd. Defense $552 NA NA
3/8/2018 Pending Guangxi Guidong Electric Power
Co., Ltd.
Guangxi Guicheng Energy Co., Ltd. Aerospace $8 NA NA
3/6/2018 3/12/2018 Falanx Group Limited First Base Technologies LLP Defense $4 1.8 x 5.3 x
2/28/2018 Pending Securitas Electronic Security Inc. Kratos Public Safety & Security Solutions,
Inc.
Defense $69 0.5 x 15.0 x
2/27/2018 Pending Héroux-Devtek Inc. Beaver Aerospace & Defense, Inc. Defense $24 0.8 x NA
2/26/2018 Pending Rakon Limited Centum Rakon India Private Limited Defense $11 0.9 x 7.1 x
2/23/2018 4/25/2018 KBRwyle Technology Solutions,
LLC
SGT, Inc. Government
Services
$355 NA NA
2/23/2018 2/23/2018 St. Cloud Capital, LLC Pipeworks Inc Defense $18 1.4 x NA
2/21/2018 2/28/2018 Exchange Income Corporation CANLink Global Inc. Aerospace $43 NA 7.2 x
2/8/2018 Pending First Israel Mezzanine Investors
Ltd.
Aitech Defense Systems, Inc. Defense $30 NA NA
2/6/2018 2/28/2018 Proofpoint, Inc. Wombat Security Technologies, Inc. Defense $225 NA NA
2/1/2018 2/1/2018 AMETEK, Inc. FMH Aerospace Corp. Defense $235 4.7 x NA
1/31/2018 4/2/2018 On Assignment, Inc. ECS Federal, Inc. Defense $775 NA NA
1/28/2018 Pending AFCON Holdings Ltd. DM Government
Services
$16 NA NA
1/26/2018 3/16/2018 Koltsovo Airport Public Stock
Company
JSC Petropavlovsk-Kamchatski Aerospace $122 NA NA
1/20/2018 1/31/2018 Oil and Natural Gas Corporation
Limited
Hindustan Petroleum Corporation Limited Aerospace $14,313 0.5 x 7.0 x
1/18/2018 2/15/2018 Compass Diversified Holdings
LLC
Foam Fabricators, Inc Defense $248 2.0 x 8.3 x
1/17/2018 1/17/2018 Onyx Scientific Limited Pisgah Labs, Inc. Government
Services
$10 NA 8.5 x
1/12/2018 Pending Melrose Industries PLC GKN plc Aerospace $12,332 0.9 x 9.3 x

SCOTT-MACON, LTD
April 2018
1/9/2018 1/9/2018 NTC Group, Inc. Tenax Aerospace, LLC Aerospace $220 NA NA
1/9/2018 12/21/2017 Hammond, Kennedy, Whitney &
Company Inc.
GCR Inc. Aerospace $124 NA NA
1/3/2018 Pending Guangzhou Hangxin Aviation
Technology Co., Ltd.
Magnetic MRO AS Aerospace $52 NA NA
1/3/2018 Pending Shanghai Hangrong New Energy
Gansu Shanghang Electrical Maintenance
Co., Ltd.
Aerospace $54 NA NA
1/2/2018 Pending Coolisys Technologies, Inc. Enertec Systems 2001 Ltd. Defense $9 NA NA
12/27/2017 1/25/2018 Catea Co., Ltd Pantom Co., Ltd. Aerospace $7 0.4 x NA
12/21/2017 2/1/2018 Mercury Systems, Inc. Themis Computer, Inc. Defense $180 NA NA
12/21/2017 1/26/2018 Perusa Partners SCHROTH Safety Products GmbH Defense $61 NA NA
12/21/2017 12/15/2017 Mistras Group, Inc. West Penn Non-Destructive Testing, LLC Defense $74 NA NA
12/20/2017 1/31/2018 EM-Tech.CO., LTD. BSL Co., Ltd. Government
Services
$11 NA NA
12/18/2017 12/15/2017 ConvergeOne, Inc. AOS, a ConvergeOne Company Defense $66 NA NA
12/18/2017 12/18/2017 Bain Capital Private Equity, LP Trans Maldivian Airways Aerospace $500 4.4 x NA
12/13/2017 Pending China Aviation Planning and
Design Institute Co., Ltd.
China Aviation Industry Renewable Energy
Corporation
Aerospace $90 2.7 x NA
12/13/2017 1/9/2018 Sdiptech AB Aviolinx Communication and Services AB Aerospace $5 2.2 x NA
12/11/2017 12/12/2017 Nanjing Dingkong Electrical and
Mechanical Technology Co., Ltd.
Yangzhou Shuguang Photoelectric Self-
controlled Co., Ltd.
12/8/2017 12/20/2017 Soltworks Co., Ltd. Kat Co., Ltd. Defense $13 0.6 x NA
12/7/2017 12/7/2017 Suomen Erillisverkot Oy Nordic Cyber Security Oy Defense $6 NA NA
12/6/2017 Pending Kordsa, Inc. Fabric Development, Inc. and Textile
Products, Inc.
Aerospace $100 NA NA
12/3/2017 4/18/2018 TTM Technologies, Inc. Anaren, Inc. Defense $775 NA NA
11/29/2017 12/31/2017 Qualys, Inc. Defensative LLC Government
Services
$8 NA NA
11/14/2017 Pending OMERS Private Equity Trescal SA Aerospace $789 NA NA

SCOTT-MACON, LTD
April 2018
11/14/2017 Pending Hartenberg Capital Avia Prime S.A. Aerospace $69 NA NA
11/9/2017 Pending Shaanxi Lixin Zhibang Energy
Xi'an Tianhe Civil-Military Integration
Innovative Technology Research Co., Ltd.
Defense $34 NA NA
11/9/2017 12/31/2017 Getac Technology Corporation WHP Workflow Solutions LLC Defense $21 NA NA
11/8/2017 11/8/2017 Structural Monitoring Systems Plc Anodyne Electronics Manufacturing Corp. Aerospace $8 NA NA
11/7/2017 10/31/2017 BNP Paribas Développement SA,
SCR
Faure Herman SAS Aerospace $22 NA NA
11/2/2017 11/23/2017 Cirrus Networks Holdings Limited Correct Communications Pty Ltd Government
Services
$4 0.4 x NA
11/2/2017 Pending Jackson Hole Airport Board Jackson Hole Aviation, LLC Aerospace $26 1.0 x NA
10/31/2017 10/30/2017 SNC-Lavalin Group Inc. Data Transfer Solutions LLC Government
Services
$45 NA NA
10/30/2017 Pending AeroCentury Corp. JetFleet Management Corporation Aerospace $5 NA NA
10/30/2017 Pending Ansys Limited LAW Trusted Third Party Services Defense $8 NA NA
10/30/2017 11/24/2017 NPD Co., Ltd. CAP Corporation Aerospace $70 0.9 x 6.1 x
10/27/2017 1/22/2018 MB Aerospace Newton Abbot
Limited
Asian Compressor Technology Services
Company Limited
Aerospace $60 NA NA
10/25/2017 Pending Meditor Energy Limited Substantially All Assets of Intelligent Energy
Holdings Plc
Defense $9 NA NA
10/23/2017 11/29/2017 Family Zone Cyber Safety
Limited
Linewize Services Limited And Linewize
Limited
Defense $13 NA NA
10/23/2017 10/23/2017 GPI SpA Info Line Srl Government
Services
$6 NA NA
10/19/2017 4/9/2018 Shanghai KangDa New Materials
Co., Ltd.
Chengdu Bikong Sci-tech Shares Co.,LTD. Defense $72 6.0 x NA
10/18/2017 10/18/2017 Spectris plc The Omnicon Group, Inc. Defense $29 NA NA
10/18/2017 10/18/2017 Gama Aviation Plc Gama Group MENA FZC Aerospace $10 0.4 x NA
10/17/2017 Pending Forever Opensource Co.,Ltd. Intelligent Aviation System Co., Ltd. Aerospace $11 NA NA
10/17/2017 Pending Dnata Aviation Services Ltd dnata Aviation Services GmbH Aerospace $47 NA NA
10/4/2017 10/4/2017 Materialise NV ACTech GmbH Aerospace $53 1.3 x 5.5 x

SCOTT-MACON, LTD
April 2018
10/2/2017 Pending Héroux-Devtek Inc. Compañía Española de Sistemas
Aeronáuticos SA
Aerospace $164 NA NA
10/1/2017 9/30/2017 Proyectos y Montajes Ingemont
S.A.
Elimco Aerospace, Sociedad Limitada Aerospace $8 NA NA
9/29/2017 9/28/2017 UTIB INVL Technology Deltagon Group Oy Defense $7 2.4 x NA
9/28/2017 11/17/2017 Dassault Systèmes Simulia Corp. Exa Corporation Aerospace $386 5.3 x NA
9/28/2017 Pending Shanghai Hugong Electric Group
Co.,Ltd.
Beijing Aerospace Huayu Technology Co.,
Ltd.
9/27/2017 12/31/2017 Zhejiang Science and
Technology Investment Co., Ltd.
Acro Aircraft Seating Ltd. Aerospace $74 1.8 x NA
9/24/2017 Pending Aeronautics Ltd. Chassis Plans, LLC Government
Services
$6 0.4 x NA
9/19/2017 9/19/2017 AAR Corp. Premier Aviation Overhaul Center, Inc., Two
Aircraft Maintenance, Repair and Overhaul
Aerospace $26 NA NA
9/19/2017 Pending AVIC International Holding Motto Investment Limited Aerospace $308 1.5 x NA
9/18/2017 Pending Northrop Grumman Corporation Orbital ATK, Inc. Defense $9,355 2.1 x 15.4 x
9/18/2017 10/2/2017 ManTech International
Corporation
InfoZen, Inc. Government
Services
$180 NA NA
9/13/2017 Pending Shanghai Greattown Industrial
Co., Ltd.
Shanghai Hangdu Property Co., Ltd. Aerospace $41 NA NA
9/11/2017 9/11/2017 Ducommun LaBarge
Technologies, Inc.
Lightning Diversion Systems Inc. Defense $60 NA NA
9/10/2017 1/24/2018 Cyient Defense Services Inc. B&F Design Inc. Defense $6 NA NA
9/4/2017 10/20/2017 H.B. Fuller Company Royal Adhesives & Sealants, LLC Aerospace $1,575 NA NA
9/4/2017 Pending United Technologies Corporation Rockwell Collins, Inc. Aerospace $30,365 5.0 x 22.6 x
8/28/2017 8/28/2017 Forcepoint LLC RedOwl Analytics, Inc. Defense $54 NA NA
8/24/2017 9/19/2017 WABCO Holdings Inc. R. H. Sheppard Co., Inc. Defense $145 1.1 x NA
8/24/2017 11/21/2017 CAE Inc. Asian Aviation Centre of Excellence Sdn Bhd Aerospace $190 NA NA
8/21/2017 8/18/2017 Appliance Recycling Centers of
America, Inc.
MJ Venture Partners, Inc. Aerospace $16 NA NA
8/18/2017 9/15/2017 Electronic Technologies Group,
Inc.
AeroAntenna Technology, Inc. Aerospace $337 NA NA

SCOTT-MACON, LTD
April 2018
8/16/2017 8/23/2017 Transaction Solutions
International Limited
Decipher Works Pty Ltd Defense $4 1.5 x 5.1 x
8/14/2017 11/27/2017 WSP Global Inc. Opus International Consultants Limited Government
Services
$202 0.6 x 8.0 x
8/11/2017 9/29/2017 Konekt Limited Mission Providence Pty Ltd Government
Services
$19 0.5 x NA
8/8/2017 9/8/2017 Arsenal Capital Partners Cyalume Technologies Holdings, Inc. Defense $43 1.0 x 5.0 x
8/8/2017 Pending Shanghai Shenhe Xintai
Investment Management Co.,
Shanghai SIM-MAX Technology Co., Ltd. Defense $50 9.5 x NA
8/7/2017 8/7/2017 Carr's Group plc NuVision Engineering, Inc. Government
Services
$20 2.3 x NA
8/2/2017 9/8/2017 Ricardo Defense Systems LLC Control Point Corporation Defense $10 NA NA
8/1/2017 4/3/2018 AVIC Electromechanical Systems
Co., Ltd.
Yibin Sanjiang Machinery Co., Ltd. Aerospace $41 NA NA
8/1/2017 8/1/2017 AVIC Electromechanical Systems
Co., Ltd.
Xinxiang Aviation Industry Aerospace $111 NA NA
7/31/2017 8/2/2017 Carmanah Technologies
Corporation
Vega Industries Ltd. Aerospace $9 NA NA
7/31/2017 Pending Indel B S.p.A. Autoclima Spa Defense $37 1.1 x 8.7 x
7/27/2017 Pending Consolidated Gems, Inc. Attofensive Defense $20 NA NA
7/24/2017 11/6/2017 SpeedCast International Limited UltiSat Inc. Defense $100 1.7 x 11.6 x
7/24/2017 7/24/2017 GENUI GmbH Acrolinx GmbH Aerospace $60 NA NA
7/19/2017 Pending Jiransecurity Co.,Ltd SSR Inc. Defense $22 3.0 x NA
7/12/2017 Pending CPP Investment Board Europe
S.a.r.l.
Shell E&P Ireland Ltd. Aerospace $1,233 NA NA
7/11/2017 Pending Sichuan Zhongguang Lightning
Protection Technologies Co., Ltd.
Shaanxi Huatong Electromechanical
Manufacturing Co., Ltd.
7/11/2017 7/24/2017 Symantec Corporation Skycure Ltd. Defense $205 NA NA
7/7/2017 Pending Shenzhen City Qianhai Wanke
Financial Services Company
Lijiang Hua Ou Real Estate Company
Limited
Defense $73 NA NA
7/7/2017 Pending Hancom Safety Inc. Sancheong Co.,Ltd. Defense $228 2.4 x 6.8 x
7/7/2017 7/3/2017 Hanwha Land Systems Co., Ltd. Hanwha Defense Systems Corp. Defense $584 NA NA

SCOTT-MACON, LTD
April 2018
7/6/2017 7/6/2017 Itinera Usa Corp. Halmar International, LLC Aerospace $120 0.5 x NA
7/6/2017 7/31/2017 Symantec Corporation Fireglass Defense $225 NA NA
7/6/2017 7/28/2017 AECOM Shimmick Construction Company, Inc. Government
Services
$175 0.6 x NA
7/5/2017 7/5/2017 Advanced Energy Industries, Inc. Excelsys Technologies Ltd. Defense $18 1.5 x NA
7/5/2017 Pending Far East Smarter Energy Co.,Ltd Beijing Jinghangan Airport Engineering Co.,
Ltd.
7/3/2017 8/15/2017 H.I.G. Capital, LLC NCI, Inc. Defense $285 0.9 x 9.6 x
6/20/2017 7/24/2017 Modern Times Group Mtg AB Kongregate, Inc. Defense $55 1.6 x NA
6/18/2017 5/31/2017 Airbus Defence and Space
GmbH
Cassidian SAS Defense $15 NA NA
6/16/2017 7/3/2017 John Bean Technologies
Corporation
Aircraft Maintenance Support Services
Limited
Aerospace $13 NA NA
6/16/2017 6/16/2017 TowerBrook Capital Partners L.P. Aernnova Aerospace S.A. Aerospace $1,427 1.8 x 10.6 x
6/15/2017 6/15/2017 Liberty Hall Capital Partners, L.P. Dunlop Aircraft Tyres Limited Defense $135 NA NA
6/7/2017 Pending EriSat LLC Aerial Source Defense $724 NA NA
6/7/2017 Pending PT Cardig Aero Services Tbk PT. Jakarta Aviation Training Center Aerospace $13 NA NA
6/1/2017 6/1/2017 TransDigm Group Incorporated Three Add On Aerospace Product Lines Aerospace $100 3.1 x NA
5/27/2017 Pending Guizhou Space Appliance Co.,
Ltd.
Shenzhen Smart Micromotor Co., Ltd Aerospace $13 NA NA
5/26/2017 Pending Guizhou Space Appliance Co.,
Ltd.
Shenzhen Casic Motor System Co.,Ltd. Aerospace $16 NA NA
5/24/2017 7/3/2017 CSRA Inc. NES Associates, LLC Defense $105 NA NA
5/18/2017 5/23/2017 New Age Beverages Corporation Premier Micronutrient Corporation Defense $5 NA NA
Aerospace Median 1.5 x 7.2 x
Aerospace Mean 2.4 x 9.8 x
Defense Median 1.5 x 8.3 x
Defense Mean 2.6 x 9.8 x
Government Services Median 0.6 x 10.1 x
Government Services Mean 1.4 x 11.6 x

SECTION 4: RECENT CONTRACTS

SCOTT-MACON, LTD
April 2018
Top 50 Signed Contracts – April 2018
Date Signed Contractor Name Funding Agency Value ($mm) Description of Services
4/27/2018 National Technology & Engineering Solutions of
Sandia, Llc
Department of Energy $1,200.6 Operation of Miscellaneous Buildings
4/25/2018 Los Alamos National Security Limited Liability
Company
Department of Energy $1,153.3 Operation of Government-Owned Contractor-
Operated R&D Facilities
4/18/2018 Lockheed Martin Corp. Dept of The Air Force $928.0 Hypersonic Conventional Strike Weapon
4/27/2018 Lockheed Martin Corp. Dept of The Army $828.7 Guided Multiple Launch Rocket Systems
4/17/2018 Deloitte & Touché Llp Dept of The Air Force $800.0 Financial Improvement and Audit Readiness Follow-
On Support
4/27/2018 Honeywell International Inc. Department of Energy $365.1 Operation of Miscellaneous Buildings
4/26/2018 Savannah River Nuclear Solutions, Llc Department of Energy $238.6 Operation of Other Industrial Buildings
4/27/2018 Mission Support And Test Services Llc Department of Energy $230.1 Operation of Miscellaneous Buildings
4/6/2018 L3 Technologies Inc. Dept of The Navy $218.1 Procurement of New Training Systems, As Well As
Hardware and Software Upgrades
4/2/2018 Lockheed Martin Corp. Dept of The Navy $211.3 Support of The F-35 Lightning Ii Preliminary Design
Review
4/11/2018 Leidos Inc. Dept of The Army $210.0 Procurement of Contracted Services
4/11/2018 Northrop Grumman Systems Corp. Dept of The Air Force $209.7 Large Aircraft Infrared Counter Measures (Laircm)
Equipment and Support
4/13/2018 Honeywell International Inc. Dept of The Army $201.5 Total Integrated Engine Revitalization Automotive Gas
Turbine Hardware
4/17/2018 Lockheed Martin Corp. Dept of The Army $200.0 Pac-3 Missile Segment Enhancement Integration and
Patriot Launch On Remote Development
4/2/2018 Huntington Ingalls Industries Dept of The Navy $180.0 Long-Lead-Time Material In Support of Pcu
Enterprise (Cvn 80)
4/13/2018 General Dynamics Mission Systems Dept of The Air Force $144.0 Operation, Sustainment, Maintenance and Expansion
of The Global Us Bices-X
4/6/2018 Powersecure Inc. Dept of The Army $140.4 Repair and Restore The Electric Power Grid In Puerto
Rico
4/19/2018 Raytheon Co. Dept of The Navy $136.5 Air and Missile Defense Radar Program (Amdr) Low
Rate Initial Production (Lrip)
4/27/2018 National Technology & Engineering Solutions of
Sandia, Llc
Department of Energy $127.8 Operation of Miscellaneous Buildings
4/18/2018 Bechtel Marine Propulsion Corporation Department of Energy $127.5 Operation of Government-Owned Contractor-
4/24/2018 Caddell Construction Co. Dept of The Army $127.0 Construction of The National Nuclear Security
Administration Albuquerque Complex
4/2/2018 General Dynamics Electric Boat Corp. Dept of The Navy $126.2 Long-Lead-Time Material In Support of The Columbia-
Class Fleet Ballistic Missile Submarines
4/25/2018 Battelle Energy Alliance Limited Liability Company Department of Energy $120.1 Operation of Government-Owned Contractor-
4/27/2018 Battelle Memorial Institute Department of Energy $109.8 Operation of Government-Owned Contractor-
4/11/2018 Glaxosmithkline Llc Centers For Disease Control and
Prevention
$106.6 Drugs and Biologicals
4/23/2018 The Whiting-Turner Contracting Co. Dept of The Navy $101.8 Construction of The Naval Computer and
Telecommunications Area Master Station Atlantic
4/9/2018 Sanofi Pasteur Inc. Centers For Disease Control and
Prevention
$98.5 Drugs and Biologicals
4/18/2018 Chemonics International, Inc Agency For International
Development
$90.9 Support- Professional: Engineering/Technical
4/25/2018 Regents of The University of California The
(7788)
Department of Energy $82.2 Operation of Government-Owned Contractor-
4/27/2018 Uchicago Argonne, Llc Department of Energy $78.9 Operation of Government-Owned Contractor-

SCOTT-MACON, LTD
April 2018
Top 50 Signed Contracts – April 2018 (Continued)
Date Signed Contractor Name Funding Agency Value ($mm) Description of Services
4/26/2018 The Regents of The University of California
(1741)
4/24/2018 Regents of The University of California Los
Alamos National Laboratory
4/2/2018 Aecom Recovery Federal Emergency Management
Agency
$65.8 Architect and Engineering- General: Other
4/2/2018 Ch2M Hill - Cdm Pa-Tac Recovery Services Federal Emergency Management
Agency
4/20/2018 Ut Battelle Limited Liability Company Department of Energy $65.2 Operation of Government-Owned Contractor-
4/2/2018 Lockheed Martin Corporation National Aeronautics and Space
Administration
$64.1 R&D- Space: Flight (Advanced Development)
4/2/2018 Fluor Enterprises, Inc Federal Emergency Management
Agency
4/2/2018 Nistac E Federal Emergency Management
Agency
4/26/2018 Washington River Protection Solutions Llc Department of Energy $56.2 Operation of Restoration of Real Property (Public Or
Private). All Actions Necessary To Restore,
4/12/2018 Bechtel National, Inc Department of Energy $55.0 Construction of Government-Owned Contractor-
4/19/2018 Reed Technology And Information Services Inc. Us Patent and Trademark Office $54.5 Miscellaneous Printed Matter
4/27/2018 California Institute of Technology National Aeronautics and Space
Administration
$54.3 R&D- Space: Science/Applications (Applied
Research/Exploratory Development)
4/19/2018 Space Exploration Technologies Corp. National Aeronautics and Space
Administration
$53.3 Transportation/Travel/Relocation- Transportation:
Space Transportation/Launch
4/25/2018 Leidos, Inc. Federal Acquisition Service $51.5 Support- Professional: Operations
Research/Quantitative Analysis
4/26/2018 Brookhaven Science Associates, Llc Department of Energy $45.3 Operation of Government-Owned Contractor-
4/24/2018 Asm Research, Inc. Department of Veterans Affairs $42.3 IT and Telecom- Cyber Security and Data Backup
4/11/2018 Savannah River Remediation Llc Department of Energy $41.5 Operation of Waste Treatment and Storage Facilities
4/27/2018 General Dynamics Information Technology, Inc. Centers For Medicare and Medicaid
Services
$41.0 Support- Professional: Other
Total Top 50 $10,016.1

SCOTT-MACON, LTD
April 2018
Contract Overview by Agency and NAICS Code – April *
Top 20 Agencies Ranked by Total Contract Value Signed in April
Top 20 NAICS Codes Ranked by Total Contract Value Signed in April
* Only includes contracts with value greater than $150,000
Rank Funding Agency Contract Value ($mm) # of Contracts
1 Department of Energy 4,956$ 191
2 Dept of The Air Force 2,082 4
3 Dept of The Army 1,728 21
4 National Aeronautics and Space Administration 997 585
5 Dept of The Navy 974 7
6 Department of Veterans Affairs 655 724
7 Federal Acquisition Service 503 395
8 Federal Emergency Management Agency 411 86
9 Agency For International Development 359 118
10 Centers For Medicare and Medicaid Services 310 73
11 Department of State 282 283
12 Centers For Disease Control and Prevention 267 65
13 Federal Aviation Administration 248 231
14 U.S. Marshals Service 191 130
15 Public Buildings Service 172 210
16 U.S. Coast Guard 165 174
17 Office of Procurement Operations 154 132
18 Federal Highway Administration 132 67
19 National Institutes of Health 115 103
20 Social Security Administration 105 51
Total Top 20 by Funding Agency 14,804$ 3,650
Rank NAICS Code Description Contract Value ($mm) # of Contracts
1 Facilities Support Services 3,858$ 175
2 Computer Systems Design Services 857 421
3 Engineering Services 666 295
4 Research And Development In The Physical, Engineering, And Life Sciences 563 26
5 Research And Development In The Physical, Engineering, And Life Sciences (Except Biotechnology) 554 253
6 Administrative Management And General Management Consulting Services 438 374
7 Other Computer Related Services 399 410
8 All Other Professional, Scientific, And Technical Services 345 148
9 Security Guards And Patrol Services 335 253
10 Remediation Services 239 61
11 Commercial And Institutional Building Construction 212 210
12 Data Processing, Hosting, And Related Services 184 78
13 Custom Computer Programming Services 132 141
14 Highway, Street, And Bridge Construction 116 54
15 Hazardous Waste Treatment And Disposal 113 7
16 All Other Publishers 111 8
17 Guided Missile And Space Vehicle Manufacturing 110 7
18 Biological Product (Except Diagnostic) Manufacturing 109 6
19 Nonscheduled Chartered Freight Air Transportation 109 17
20 Medicinal And Botanical Manufacturing 107 2
Total Top 20 by NAICS Code Description 9,558$ 2,946

SECTION 5: KEY AEROSPACE & DEFENSE STATS

SCOTT-MACON, LTD
April 2018
Key Aerospace & Defense Stats
ASM – Global (in thousands) # of Passengers - Global
RSM – Global (in thousands) Load Factor % - Global
Commercial Aerospace Orders
Source: FAA
LTM as of 3/2018 LTM as of 3/2017 YoY % Change 3/2018 2/2018 1/2018 12/2017 11/2017 10/2017 9/2017 8/2017 7/2017 6/2017 5/2017 4/2017
Narrowbody Unit Orders 1,989 1,375 44.7% 197 29 43 1,022 188 69 101 41 11 236 33 19
    Boeing 872 758 15.0% 160 9 28 255 143 52 61 31 13 104 3 13
        737 872 758 15.0% 160 9 28 255 143 52 61 31 13 104 3 13
    Airbus 1,117 617 81.0% 37 20 15 767 45 17 40 10 ‐2 132 30 6
        A320 1,117 617 81.0% 37 20 15 767 45 17 40 10 ‐2 132 30 6
Widebody Unit Orders 284 277 2.5% 45 29 0 19 16 12 27 2 13 78 30 13
    Boeing 210 167 25.7% 37 21 0 10 16 12 11 2 9 80 10 2
        787 128 90 42.2% 32 0 0 7 13 0 5 0 3 56 10 2
        777 56 22 154.5% 2 3 0 3 2 12 6 0 4 24 0 0
        767 7 40 ‐82.5% 3 4 0 0 0 0 0 0 0 0 0 0
        747 19 15 26.7% 0 14 0 0 1 0 0 2 2 0 0 0
    Airbus 74 110 ‐32.7% 8 8 0 9 0 0 16 0 4 ‐2 20 11
        A350 33 44 ‐25.0% 0 0 0 ‐4 0 0 10 0 1 ‐4 20 10
        A380 28 ‐2 NM 14 14 0 0 0 0 0 0 0 0 0 0
        A330 13 68 ‐80.9% ‐6 ‐6 0 13 0 0 6 0 3 2 0 1
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
0
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000
160,000,000
180,000,000
200,000,000
ASM ‐ Global MoM Growth %
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
0
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000
160,000,000
180,000,000
RSM ‐ Global MoM Growth %
‐2.0%
‐1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
80,000,000
90,000,000
100,000,000
# of Passengers MoM Growth %
‐2.0%
‐1.5%
‐1.0%
‐0.5%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Load Factor % MoM Growth %

SCOTT-MACON, LTD
April 2018
Key Aerospace & Defense Stats
84%
16%
Domestic International
Global Business Jet Traffic
(Flights in Thousands)
3/2018 Global Business Jet Traffic
by Type (354K Flights)
Global Business Jet Deliveries
2017 Global Business Jet Deliveries
By Market (676 Deliveries)
U.S. Defense Budget
* Base Budget Request
Source: GAMA, Office of the Under Secretary of Defense
354352
384
401
388386
362
375
385
375
388
344
‐2%
0%
2%
4%
6%
8%
10%
310
320
330
340
350
360
370
380
390
400
410
# of Flights MoM Growth %
63.8%
17.0%
9.9%
5.3%
4.0%
North America Europe Asia‐Pacific Latin America Middle East & Africa
518
592
750
887
1,137
1,317
874
767
696 672 678
722 718
667 676
0
200
400
600
800
1,000
1,200
1,400
By Appropriation Title ($ in billions) FY 2016 FY 2017 FY 2018* Dollar Δ %Δ
Military Personnel 135.3$ 135.4$ 141.7$ 6.3$ 4.6%
Operation and Maintenance 197.5 197.1 223.3 26.2 13.3%
Procurement 110.7 110.7 115.0 4.3 3.8%
RDT&E 68.8 69.6 82.7 13.1 18.8%
Military Construction/Family Housing 6.9 6.5 8.4 1.9 29.4%
Other 2.5 2.4 3.5 1.1 44.5%
Total 521.7$ 521.8$ 574.5$ 52.8$ 10.1%
By Military Department ($ in billions) FY 2016 FY 2017 FY 2018* Dollar Δ %Δ
Army 123.3$ 122.9$ 137.1$ 14.2$ 11.6%
Navy 159.3 159.1 171.5 12.4 7.8%
Air Force 145.7 146.5 165.5 19.0 13.0%
Defense Wide 93.4 93.3 100.4 7.1 7.6%
Total 521.7$ 521.8$ 574.5$ 52.8$ 10.1%
FY 2017 vs FY 2018
FY 2017 vs FY 2018

SECTION 6: ABOUT SCOTT-MACON

SCOTT-MACON, LTD
April 2018
Overview
Michael Papazis has over 15 years of investment banking experience. Prior to joining Scott-Macon, Mr. Papazis
was a Vice President of Aerospace & Defense Investment Banking at Oppenheimer & Co. Before Oppenheimer,
Michael was a Senior Associate within the Aerospace & Defense Investment Banking Group at Jefferies & Company.
Mr. Papazis began his career as an Analyst at Deutsche Banc Alex Brown in Baltimore, Maryland. Throughout his
career, Mr. Papazis has worked on several M&A, equity and debt financing transactions for various Aerospace &
Defense clients including Lockheed Martin, Kratos Defense & Security and Essex Corporation.
Mr. Papazis is a graduate of Dartmouth College with a B.A. in Economics and Government, Cum Laude. He also
holds an M.A. in International Affairs from the Johns Hopkins University School of Advanced International Studies
(SAIS).
Michael N. Papazis
Managing Director
Scott-Macon, Ltd.
Office: (212) 755-8200
Fax: (212) 583-9262
mpapazis@scott-macon.com
www.scott-macon.com
Selected Transaction Experience

SCOTT-MACON, LTD
April 2018
Scott-Macon, Ltd. is one of the oldest independent investment banks in the United States focused on middle market
transactions in the range of $10 million to $500 million. The firm is comprised of senior professionals who have had extensive
transaction experience in the areas of mergers and acquisitions, debt and equity financing, valuations and fairness opinions and
general corporate financial consulting.
Founded in 1973 by Alfred L. Scott, Scott-Macon has remained unique in its commitment to provide clients with senior level
advisors who have had significant investment banking experience as well as, in many cases, direct operating experience. The
firm's philosophy of providing advice, ideas and solutions tempered by the perspective of actual operating experience has
benefited clients over the firm's long history.
Another cornerstone of Scott-Macon’s operating philosophy is a client-oriented approach to investment banking services, in
contrast to today’s transaction-oriented environment. Scott-Macon professionals strive to understand the unique aspects of
each client's operations and will not hesitate to counsel against a transaction if it does not appear to be in the long-term best
interests of a client. The firm’s ownership by its own management team enables and encourages a truly unbiased and
independent perspective; free from the inherent conflicts and cross-selling that can occur when advisory services are integrated
into broader financial services platforms incorporating banking, securities or accounting. The success of Scott-Macon’s client-
oriented approach has been validated over the firm’s history by the high percentage of repeat engagements which the firm has
experienced from its clients.
About Scott-Macon
Aerospace
OEM
Structures
Components
MRO / Aftermarket
Defense
Defense
Electronics
Homeland Security
Defense Systems
C4ISR
Government
Services
Intelligence
Civil / Non-Defense
SETA / Engineering
IT Services
Aerospace Defense & Government Services Coverage
About Scott-Macon
Prepared by SCOTT-MACON, LTD
Over 40 Years of Senior Level Experience, Attention & Execution in Investment Banking

Scott-Macon Aerospace, Defense and Government (April 2018) Newsletter

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