This document provides an investment recommendation and analysis for Brookdale Senior Living Inc. (BKD) from Seamus Sullivan of BKD. It recommends buying BKD stock with a price target of $53 per share. The analysis includes an overview of BKD's business operations and segments. It discusses the investment thesis, including expected synergies from BKD's merger with Emeritus, industry tailwinds from demographic trends, occupancy growth opportunities, pricing power, and a sum-of-the-parts valuation estimating a value ranging from $24-44 per share depending on assumptions. Key risks and catalysts are also mentioned. Financial projections are provided through 2017.
OPEB Investments: The Danger in Playing it SafeMWSchulte
The document discusses investing Other Post-Employment Benefit (OPEB) funds and the implications for school boards. It notes that playing it too safe with OPEB investments, such as keeping funds in low-return savings accounts, poses dangers as the funds may deplete before obligations are met. Diversifying investments and allowing access to higher-returning asset classes like equities can help funds last longer. School boards have a fiduciary duty to ensure investment policies and expertise are in place to prudently manage OPEB investments for the long run. Actuarial analyses are an important starting point but assumptions will change over time.
Slides from an APPG on Social Care public debate, in association with the Strategic Society Centre.
Date and time: 16.30-18.30, June 26th 2012
Location: Committee Room 18, House of Commons
Speakers at this event comprised:
James Lloyd, Director, The Strategic Society Centre
Paul Johnson, Director, IFS
Anita Charlesworth, Chief Economist, Nuffield Trust and former Director of Public Spending, HM Treasury
Caroline Abrahams, Director of External Affairs, Age UK
xcel energy AB7A4639-F266-4C1B-8624-A2DC294B5C02_2009_NEWFixedIncomeFebruaryfinance26
This document summarizes a presentation given to fixed income investors by Xcel Energy. It outlines Xcel's strategy of growing its core utility business while meeting environmental challenges. Key points include solid liquidity and balance sheet strength, constructive regulatory relationships, and good growth prospects across its utilities. Xcel expects to deliver 5-7% annual EPS growth and 2-4% annual dividend growth through rate base investments and recovery mechanisms.
Fifth Third Bancorp reported 2007 earnings of $1.1 billion, or $2.03 per diluted share, compared to $1.2 billion, or $2.13 per diluted share in 2006. Fourth quarter 2007 earnings were $38 million, or $0.07 per diluted share, compared to $325 million, or $0.61 per diluted share in the third quarter of 2007. Results were impacted by non-cash charges including lowering the value of a Bank-Owned Life Insurance policy and reserves related to potential Visa litigation settlements. Excluding these items, operating earnings were lower due to deterioration in credit performance and increased loan loss reserves in response to challenging credit conditions expected to continue in the near
The Silver State Health Insurance Exchange (SSHIX) is Nevada's state-based health insurance exchange created by SB 440. The SSHIX will facilitate the purchase of qualified health plans for individuals and small businesses, provide consumer assistance, and reduce the number of uninsured in Nevada. It has advisory committees that make recommendations on issues like plan certification, risk adjustment, and consumer outreach. The SSHIX is led by an executive director and governed by a 10-member board.
This document summarizes Xcel Energy's presentation at the Banc of America Securities Energy & Power Conference on November 17-19, 2003. It discusses Xcel Energy's accomplishments in 2003, objectives for investment, earnings growth, and credit ratings improvement. It also provides guidance on projected 2003 and 2004 earnings, cash flows, utility investments, and the expected timeline for NRG's emergence from bankruptcy.
This document provides an analysis and stock recommendation for Credit Corp Group Limited (CCP). It summarizes CCP's most recent financial results, which confirm the momentum of the company's corporate turnaround. The analyst upgrades the price target for CCP stock to A$2.29 based on two potential drivers of excess returns: 1) CCP is positioned for a price-to-book valuation re-rating as its current valuation implies no value for its business franchise; and 2) continued earnings growth driven by increased staff productivity and harvesting older purchased debt ledgers. The analyst maintains a "Buy" recommendation on CCP stock.
- SunTrust reported a net loss of $379.2 million for Q4 2008 compared to a profit of $3.3 million in Q4 2007, due to higher credit costs from the deteriorating economy. For the full year 2008, SunTrust reported a profit of $746.9 million, down 53.4% from 2007.
- Revenue increased 8.8% in Q4 2008 versus Q4 2007, driven by lower market valuation losses on loans and securities carried at fair value. However, higher credit costs led to a net loss for the quarter.
- Noninterest income rose 24.6% in Q4 2008 versus Q4 2007 mainly due to lower mark-to-market losses, but
OPEB Investments: The Danger in Playing it SafeMWSchulte
The document discusses investing Other Post-Employment Benefit (OPEB) funds and the implications for school boards. It notes that playing it too safe with OPEB investments, such as keeping funds in low-return savings accounts, poses dangers as the funds may deplete before obligations are met. Diversifying investments and allowing access to higher-returning asset classes like equities can help funds last longer. School boards have a fiduciary duty to ensure investment policies and expertise are in place to prudently manage OPEB investments for the long run. Actuarial analyses are an important starting point but assumptions will change over time.
Slides from an APPG on Social Care public debate, in association with the Strategic Society Centre.
Date and time: 16.30-18.30, June 26th 2012
Location: Committee Room 18, House of Commons
Speakers at this event comprised:
James Lloyd, Director, The Strategic Society Centre
Paul Johnson, Director, IFS
Anita Charlesworth, Chief Economist, Nuffield Trust and former Director of Public Spending, HM Treasury
Caroline Abrahams, Director of External Affairs, Age UK
xcel energy AB7A4639-F266-4C1B-8624-A2DC294B5C02_2009_NEWFixedIncomeFebruaryfinance26
This document summarizes a presentation given to fixed income investors by Xcel Energy. It outlines Xcel's strategy of growing its core utility business while meeting environmental challenges. Key points include solid liquidity and balance sheet strength, constructive regulatory relationships, and good growth prospects across its utilities. Xcel expects to deliver 5-7% annual EPS growth and 2-4% annual dividend growth through rate base investments and recovery mechanisms.
Fifth Third Bancorp reported 2007 earnings of $1.1 billion, or $2.03 per diluted share, compared to $1.2 billion, or $2.13 per diluted share in 2006. Fourth quarter 2007 earnings were $38 million, or $0.07 per diluted share, compared to $325 million, or $0.61 per diluted share in the third quarter of 2007. Results were impacted by non-cash charges including lowering the value of a Bank-Owned Life Insurance policy and reserves related to potential Visa litigation settlements. Excluding these items, operating earnings were lower due to deterioration in credit performance and increased loan loss reserves in response to challenging credit conditions expected to continue in the near
The Silver State Health Insurance Exchange (SSHIX) is Nevada's state-based health insurance exchange created by SB 440. The SSHIX will facilitate the purchase of qualified health plans for individuals and small businesses, provide consumer assistance, and reduce the number of uninsured in Nevada. It has advisory committees that make recommendations on issues like plan certification, risk adjustment, and consumer outreach. The SSHIX is led by an executive director and governed by a 10-member board.
This document summarizes Xcel Energy's presentation at the Banc of America Securities Energy & Power Conference on November 17-19, 2003. It discusses Xcel Energy's accomplishments in 2003, objectives for investment, earnings growth, and credit ratings improvement. It also provides guidance on projected 2003 and 2004 earnings, cash flows, utility investments, and the expected timeline for NRG's emergence from bankruptcy.
This document provides an analysis and stock recommendation for Credit Corp Group Limited (CCP). It summarizes CCP's most recent financial results, which confirm the momentum of the company's corporate turnaround. The analyst upgrades the price target for CCP stock to A$2.29 based on two potential drivers of excess returns: 1) CCP is positioned for a price-to-book valuation re-rating as its current valuation implies no value for its business franchise; and 2) continued earnings growth driven by increased staff productivity and harvesting older purchased debt ledgers. The analyst maintains a "Buy" recommendation on CCP stock.
- SunTrust reported a net loss of $379.2 million for Q4 2008 compared to a profit of $3.3 million in Q4 2007, due to higher credit costs from the deteriorating economy. For the full year 2008, SunTrust reported a profit of $746.9 million, down 53.4% from 2007.
- Revenue increased 8.8% in Q4 2008 versus Q4 2007, driven by lower market valuation losses on loans and securities carried at fair value. However, higher credit costs led to a net loss for the quarter.
- Noninterest income rose 24.6% in Q4 2008 versus Q4 2007 mainly due to lower mark-to-market losses, but
This document provides an overview of Xcel Energy from their presentation at the Edison Electric Institute Financial Conference in October 2003. Key points include Xcel achieving several accomplishments in 2003 including settling with NRG creditors, maintaining investment grade ratings, and refinancing debt. Projections for 2004 include earnings of $1.15-1.25 per share assuming NRG emerges from bankruptcy. The presentation outlines Xcel's objectives, investments, regulatory strategy, and earnings drivers to emphasize the company as a low-risk, integrated utility with a total return of 7-8%.
This document from Danaher Corporation provides supplemental financial information for 2004 including key debt and capital ratios as well as free cash flow calculations. It shows that Danaher's debt to total capital ratio decreased from 26.3% in 2003 to 22.6% in 2004 as debt levels declined and equity increased. The net debt to total capital ratio also decreased substantially from 1.4% to 12.4% as cash levels rose significantly. Free cash flow increased from $781 million in 2003 to $917 million in 2004 and the ratio of free cash flow to net earnings was 1.23 in 2004.
Kansas is facing budget challenges as the state population growth has slowed, private sector jobs were lost while public sector grew, total state debt is over $15 billion, and spending is exceeding revenues. The largest portions of the state budget are spent on K-12 education at 52.4% and human services at 23.6%. Key factors increasing spending are rising human services caseloads, pension payments, special education costs, and corrections costs. The legislature will need to address the budget gap through the veto session in April or a potential special session.
This document provides supplemental financial information for Danaher Corporation and subsidiaries as of April 1, 2005 and December 31, 2004. It includes ratios such as debt to total capital and net debt to total capital, which measure the company's debt leverage. It also includes free cash flow information, defined as operating cash flow less capital expenditures, and the ratio of free cash flow to net earnings.
Sources of Financing Capital to Fund a Growing BusinessSSDlaw
This webinar discusses sources of financing and capital for growing businesses. It begins with introductions from presenters Cliff Bishop and John Glankler. They then cover topics like sources of financing including debt, equity, and mezzanine options; M&A trends; and corporate liquidity and private equity dry powder that could fuel M&A activity. Due diligence is emphasized as increasingly important when seeking capital. The webinar concludes with thanks and instructions to access additional materials.
1) Auto-Owners Insurance Group had a profitable year in 2007, with over $4.5 billion in net written premiums, though premiums decreased slightly from 2006. They experienced their second highest losses from weather events.
2) The Life Company reached $3.5 billion in life insurance issued, their highest amount ever. Assets for the Group grew to over $13.6 billion.
3) Construction began on a new 95,000 square foot data center to protect computer operations from severe weather and ensure continuous service for agents and policyholders.
This document summarizes Xcel Energy's investor meetings on the west coast in September 2005. It outlines Xcel's strategy to invest in utility assets and earn allowed returns on equity. It provides details on drivers of value creation, capital expenditure plans from 2005-2009, sources of funding, potential regulatory income increases, and earnings growth targets. The appendix provides additional details on Xcel's service territories, organizational structure, rate base and returns by state.
Fifth Third Bancorp reported first quarter 2008 earnings of $292 million, or $0.55 per diluted share, compared to $16 million in the previous quarter and $359 million in the first quarter of 2007. Net interest income increased 11% year-over-year to $826 million due to loan and deposit growth as well as lower funding costs, while the net interest margin declined slightly. Loan balances grew 9% year-over-year led by increases in commercial and residential mortgage loans. Credit costs increased substantially due to deterioration in residential real estate, homebuilder, and development loans.
This document provides an overview of Xcel Energy's strategy and financial outlook for 2005-2009. Key points include:
1) Xcel plans to invest $6.8 billion in utility assets to earn its allowed return on equity and drive earnings growth through increased rate base.
2) Earnings are expected to grow 4-8% annually from increased investment and potential rate increases.
3) Major investment projects include Minnesota MERP and Comanche Unit 3, with overall capital expenditures growing utility rate base by an average of 4.4% annually.
4) Xcel expects to fund investments through operations, debt issuance, and dividend reinvestment without needing to issue new equity through 2006.
xcel energy 9_4LehmanConfPresentation952007SECfinance26
This document summarizes a presentation given by Ben Fowke, Vice President and CFO of Xcel Energy, at a Lehman Brothers conference on September 5, 2007. Fowke outlines Xcel Energy's value proposition as a low-risk regulated utility with a constructive regulatory environment and opportunities for investment and growth. He highlights recent accomplishments and construction projects on budget and on schedule. Fowke projects continued investment opportunities, earnings per share growth of 5-7% annually, and dividend growth of 2-4% per year through 2011 while maintaining a dividend yield of approximately 4.5%.
InKnowVision October 2012 HNW Technical Webinar w/ Guest Presenter Bob ScarlataInKnowVision
As an investment banker for some 26 years who has sold dozens of middle market privately held companies to private equity groups throughout the U.S. and Canada, Bob Scarlata will describe for us how private equity groups make their money and how private business owners can benefit and profit from their professional management strategies.
- Caterpillar is a global manufacturer of construction and mining equipment based in the US. It has three main business lines: machinery, engines, and financial products.
- In 2010, Caterpillar saw sales increase 31% from 2009 as the global economy recovered. However, it still faces challenges from competition and economic uncertainty.
- The analyst provides forecasts for Caterpillar's financials through 2015, estimating continued revenue growth. However, they recommend selling the stock due to risks from economic conditions and competitive pressures.
This document provides an investment memorandum for Aspen Meadow Apartments, a 258-unit apartment complex located in Hopkinsville, Kentucky. It outlines the purchase details, renovation plans, financial projections, and investment structure. The sponsors plan to purchase the property for $15.48 million, complete renovations, stabilize occupancy and rents, then refinance with HUD debt within 24 months. Financial projections estimate a 19.9% annualized return over 5 years for investors.
This is one of the two stock I am responsible for during the time I took FI457 class at MSU. I did a 5-year cash flow prediction base on the company 10-K and other information. This shows my suggestions base on the financial analysis.
The document discusses three options for the valuation and strategic direction of IT Group:
1) Divest the SSIT segment, conduct an IPO of the remaining IT services business.
2) Conduct an LBO of the entire IT Group.
3) Maintain the status quo.
The executive summary recommends divesting SSIT and conducting an IPO of the IT services business as this option maximizes value for IT Group while also protecting the family's legacy through a split-share structure and relieves debt burden. Maintaining the status quo does not increase liquidity or maximize value.
ALPFA National Convention KPMG Case Competitionricaurte
This is the PowerPoint for my team's case presentation. My part was on the Financial Analysis. The tables had each column appearing one-at-a-time, so that it was easier for people to follow what I was saying, and the boxes with a white border were the points I briefly talked about.
The document summarizes a paper that proposes a new method for commercial mortgage lenders to explicitly factor energy risk and building energy efficiency into mortgage underwriting. It finds that standard underwriting does not account for risks from volatile energy prices, which can significantly impact building cash flows. The authors develop a model to simulate cash flows under different energy price scenarios and incorporate these risks into loan valuations. The results show loan valuations are 8.5% lower when accounting for energy, with larger reductions for larger buildings and loans. The paper concludes this method can help lenders more accurately price loans based on location-specific energy risks and efficiency levels.
The document provides an executive summary of valuation options for the IT Group. It outlines three main options to consider: 1) Divesting the SSIT segment and having an IPO of the IT Consulting segment, 2) conducting an LBO of the entire IT Group, or 3) maintaining the status quo. For each option, it discusses factors such as equity value, enterprise value, liquidity events, and maximizing overall value. It recommends that divesting SSIT and conducting an IPO of IT Consulting would maximize value while also protecting the family legacy.
Practical wealth management strategies for Health Care professionals looking to reduce taxes and maximize family estate using tax deferrals, income splitting, incorporation, insurance and Individual Pension Plans, among other strategies.
Know Your Valuation for Equity Compensation (And Avoid the Perils of 409A)The Capital Network
This document discusses equity compensation and IRC Section 409A compliance. It provides an overview of common stock compensation plans and the tax treatment. Section 409A aims to regulate nonqualified deferred compensation and can impose penalties if not followed. The document then outlines several methods for valuing private companies for 409A compliance, including the Berkus method, Bill Payne method, and venture capital method. It walks through a detailed example of performing a valuation using these approaches and determining a fair market value per share of common stock.
The document discusses the discounted cash flow (DCF) valuation method. It explains that DCF values a business based on projections of its future free cash flows discounted back to the present. It outlines the DCF calculation process, including forecasting cash flows, determining a discount rate, discounting the cash flows, and adding a continuing value. An example DCF model for a company is presented, showing projections, WACC calculation, discounted cash flows, and equity valuation. Advantages and disadvantages of the DCF method are also discussed.
This document provides an overview of Xcel Energy from their presentation at the Edison Electric Institute Financial Conference in October 2003. Key points include Xcel achieving several accomplishments in 2003 including settling with NRG creditors, maintaining investment grade ratings, and refinancing debt. Projections for 2004 include earnings of $1.15-1.25 per share assuming NRG emerges from bankruptcy. The presentation outlines Xcel's objectives, investments, regulatory strategy, and earnings drivers to emphasize the company as a low-risk, integrated utility with a total return of 7-8%.
This document from Danaher Corporation provides supplemental financial information for 2004 including key debt and capital ratios as well as free cash flow calculations. It shows that Danaher's debt to total capital ratio decreased from 26.3% in 2003 to 22.6% in 2004 as debt levels declined and equity increased. The net debt to total capital ratio also decreased substantially from 1.4% to 12.4% as cash levels rose significantly. Free cash flow increased from $781 million in 2003 to $917 million in 2004 and the ratio of free cash flow to net earnings was 1.23 in 2004.
Kansas is facing budget challenges as the state population growth has slowed, private sector jobs were lost while public sector grew, total state debt is over $15 billion, and spending is exceeding revenues. The largest portions of the state budget are spent on K-12 education at 52.4% and human services at 23.6%. Key factors increasing spending are rising human services caseloads, pension payments, special education costs, and corrections costs. The legislature will need to address the budget gap through the veto session in April or a potential special session.
This document provides supplemental financial information for Danaher Corporation and subsidiaries as of April 1, 2005 and December 31, 2004. It includes ratios such as debt to total capital and net debt to total capital, which measure the company's debt leverage. It also includes free cash flow information, defined as operating cash flow less capital expenditures, and the ratio of free cash flow to net earnings.
Sources of Financing Capital to Fund a Growing BusinessSSDlaw
This webinar discusses sources of financing and capital for growing businesses. It begins with introductions from presenters Cliff Bishop and John Glankler. They then cover topics like sources of financing including debt, equity, and mezzanine options; M&A trends; and corporate liquidity and private equity dry powder that could fuel M&A activity. Due diligence is emphasized as increasingly important when seeking capital. The webinar concludes with thanks and instructions to access additional materials.
1) Auto-Owners Insurance Group had a profitable year in 2007, with over $4.5 billion in net written premiums, though premiums decreased slightly from 2006. They experienced their second highest losses from weather events.
2) The Life Company reached $3.5 billion in life insurance issued, their highest amount ever. Assets for the Group grew to over $13.6 billion.
3) Construction began on a new 95,000 square foot data center to protect computer operations from severe weather and ensure continuous service for agents and policyholders.
This document summarizes Xcel Energy's investor meetings on the west coast in September 2005. It outlines Xcel's strategy to invest in utility assets and earn allowed returns on equity. It provides details on drivers of value creation, capital expenditure plans from 2005-2009, sources of funding, potential regulatory income increases, and earnings growth targets. The appendix provides additional details on Xcel's service territories, organizational structure, rate base and returns by state.
Fifth Third Bancorp reported first quarter 2008 earnings of $292 million, or $0.55 per diluted share, compared to $16 million in the previous quarter and $359 million in the first quarter of 2007. Net interest income increased 11% year-over-year to $826 million due to loan and deposit growth as well as lower funding costs, while the net interest margin declined slightly. Loan balances grew 9% year-over-year led by increases in commercial and residential mortgage loans. Credit costs increased substantially due to deterioration in residential real estate, homebuilder, and development loans.
This document provides an overview of Xcel Energy's strategy and financial outlook for 2005-2009. Key points include:
1) Xcel plans to invest $6.8 billion in utility assets to earn its allowed return on equity and drive earnings growth through increased rate base.
2) Earnings are expected to grow 4-8% annually from increased investment and potential rate increases.
3) Major investment projects include Minnesota MERP and Comanche Unit 3, with overall capital expenditures growing utility rate base by an average of 4.4% annually.
4) Xcel expects to fund investments through operations, debt issuance, and dividend reinvestment without needing to issue new equity through 2006.
xcel energy 9_4LehmanConfPresentation952007SECfinance26
This document summarizes a presentation given by Ben Fowke, Vice President and CFO of Xcel Energy, at a Lehman Brothers conference on September 5, 2007. Fowke outlines Xcel Energy's value proposition as a low-risk regulated utility with a constructive regulatory environment and opportunities for investment and growth. He highlights recent accomplishments and construction projects on budget and on schedule. Fowke projects continued investment opportunities, earnings per share growth of 5-7% annually, and dividend growth of 2-4% per year through 2011 while maintaining a dividend yield of approximately 4.5%.
InKnowVision October 2012 HNW Technical Webinar w/ Guest Presenter Bob ScarlataInKnowVision
As an investment banker for some 26 years who has sold dozens of middle market privately held companies to private equity groups throughout the U.S. and Canada, Bob Scarlata will describe for us how private equity groups make their money and how private business owners can benefit and profit from their professional management strategies.
- Caterpillar is a global manufacturer of construction and mining equipment based in the US. It has three main business lines: machinery, engines, and financial products.
- In 2010, Caterpillar saw sales increase 31% from 2009 as the global economy recovered. However, it still faces challenges from competition and economic uncertainty.
- The analyst provides forecasts for Caterpillar's financials through 2015, estimating continued revenue growth. However, they recommend selling the stock due to risks from economic conditions and competitive pressures.
This document provides an investment memorandum for Aspen Meadow Apartments, a 258-unit apartment complex located in Hopkinsville, Kentucky. It outlines the purchase details, renovation plans, financial projections, and investment structure. The sponsors plan to purchase the property for $15.48 million, complete renovations, stabilize occupancy and rents, then refinance with HUD debt within 24 months. Financial projections estimate a 19.9% annualized return over 5 years for investors.
This is one of the two stock I am responsible for during the time I took FI457 class at MSU. I did a 5-year cash flow prediction base on the company 10-K and other information. This shows my suggestions base on the financial analysis.
The document discusses three options for the valuation and strategic direction of IT Group:
1) Divest the SSIT segment, conduct an IPO of the remaining IT services business.
2) Conduct an LBO of the entire IT Group.
3) Maintain the status quo.
The executive summary recommends divesting SSIT and conducting an IPO of the IT services business as this option maximizes value for IT Group while also protecting the family's legacy through a split-share structure and relieves debt burden. Maintaining the status quo does not increase liquidity or maximize value.
ALPFA National Convention KPMG Case Competitionricaurte
This is the PowerPoint for my team's case presentation. My part was on the Financial Analysis. The tables had each column appearing one-at-a-time, so that it was easier for people to follow what I was saying, and the boxes with a white border were the points I briefly talked about.
The document summarizes a paper that proposes a new method for commercial mortgage lenders to explicitly factor energy risk and building energy efficiency into mortgage underwriting. It finds that standard underwriting does not account for risks from volatile energy prices, which can significantly impact building cash flows. The authors develop a model to simulate cash flows under different energy price scenarios and incorporate these risks into loan valuations. The results show loan valuations are 8.5% lower when accounting for energy, with larger reductions for larger buildings and loans. The paper concludes this method can help lenders more accurately price loans based on location-specific energy risks and efficiency levels.
The document provides an executive summary of valuation options for the IT Group. It outlines three main options to consider: 1) Divesting the SSIT segment and having an IPO of the IT Consulting segment, 2) conducting an LBO of the entire IT Group, or 3) maintaining the status quo. For each option, it discusses factors such as equity value, enterprise value, liquidity events, and maximizing overall value. It recommends that divesting SSIT and conducting an IPO of IT Consulting would maximize value while also protecting the family legacy.
Practical wealth management strategies for Health Care professionals looking to reduce taxes and maximize family estate using tax deferrals, income splitting, incorporation, insurance and Individual Pension Plans, among other strategies.
Know Your Valuation for Equity Compensation (And Avoid the Perils of 409A)The Capital Network
This document discusses equity compensation and IRC Section 409A compliance. It provides an overview of common stock compensation plans and the tax treatment. Section 409A aims to regulate nonqualified deferred compensation and can impose penalties if not followed. The document then outlines several methods for valuing private companies for 409A compliance, including the Berkus method, Bill Payne method, and venture capital method. It walks through a detailed example of performing a valuation using these approaches and determining a fair market value per share of common stock.
The document discusses the discounted cash flow (DCF) valuation method. It explains that DCF values a business based on projections of its future free cash flows discounted back to the present. It outlines the DCF calculation process, including forecasting cash flows, determining a discount rate, discounting the cash flows, and adding a continuing value. An example DCF model for a company is presented, showing projections, WACC calculation, discounted cash flows, and equity valuation. Advantages and disadvantages of the DCF method are also discussed.
This document is a presentation of the 1Q08 results for Banco ABC Brasil. Some key highlights include:
- The loan portfolio grew 15.8% compared to 4Q07 and 80.9% compared to 1Q07.
- Net income increased 106.4% to R$38.0 million compared to 1Q07.
- The quality of the loan portfolio remained high, with 99.4% rated between AA-C on Brazil's rating scale.
- Several new business segments were inaugurated in regions like Rio de Janeiro and Minas Gerais.
- Guidance for 2008 includes targeted credit portfolio growth of 50-60% and personnel expense growth of 12
Keeping PACE With Energy Efficiency in North AmericaKerry Kilpatrick
Owners of commercial and industrial property in the U.S. spend $202 billion each year on energy for their operations and yet 30% of that cost is unnecessary. Property Assessed Clean Energy provides a solution.
The court reviewed the valuations of a 15% interest in a private company completed by experts for the estate and IRS. Key issues included the appropriate financial data, adjustments, valuation methods, and assumptions. The estate's DCF analysis projected higher growth but excluded pension adjustments. The IRS analysis relied more on market methods and lower projections. The court generally sided with the IRS experts but made some adjustments, such as constructing its own projections between the two. It applied discounts of 23% for lack of control and 31% for lack of marketability.
Muthengi mike bamburi financial model - enhancementMike Muthengi
The document contains a financial model for Bamburi Cement Limited including an income statement, balance sheet, cash flow statement, assumptions, and notes. It shows projected growth in revenue, earnings, and cash flows over the period 2017-2021. Key assumptions include revenue growth of 5% annually, declining cost of goods sold as a percentage of revenue, and increasing SG&A expenses. The model indicates increasing profitability, cash flows, and dividends over the projection period.
This document summarizes the financial position of two companies based on their balance sheets and income statements from 2007 and 2006. It finds that Company A's current ratio improved from 1.36 to 1.43 from 2006 to 2007 while its quick ratio declined slightly. Company B saw an improvement in both current ratio from 1.52 to 1.36 and quick ratio from 0.97 to 0.39 over the same period. The document then provides ratio analyses for 11 key financial ratios for each company in both years.
This document summarizes the financial position of two companies based on their balance sheets and income statements from 2007 and 2006. It finds that Company A's current ratio improved from 1.36 to 1.43 from 2006 to 2007 while its quick ratio declined slightly. Company B saw an improvement in both current ratio from 1.52 to 1.36 and quick ratio from 0.97 to 0.39 over the same period. The document also provides ratio analyses for profitability, asset utilization, debt, and returns for both companies for 2006 and 2007.
Why Knowing Profitability Is the Key to Success at Your InstitutionBaker Hill
Most financial institutions don’t understand that the majority of their relationships are not profitable. This results in poor strategic planning especially when dealing with issues with the balance sheet. Senior Management has to understand and deal with different types of risk, along with income statement stagnation in these times of rising interest rates.
Investment In Business Assets PowerPoint Presentation SlidesSlideTeam
The document discusses investment in business assets and capital budgeting. It includes tables analyzing the composition of assets and liabilities, fixed capital, current cost analysis of fixed assets, ratio analysis, cash flow, four stages of return on investment models, ROI calculations, payback period analysis, and NPV analysis. The document provides financial information and performance metrics for evaluating different investment projects and assets.
Presenting this set of slides with name - Fixed Investment Analysis Powerpoint Presentation Slides. We bring to you to the point topic specific slides with apt research and understanding. Putting forth our PPT deck comprises of thirtynine slides. Our tailor made Fixed Investment Analysis Powerpoint Presentation Slides editable presentation deck assists planners to segment and expound the topic with brevity. The advantageous slides on Fixed Investment Analysis Powerpoint Presentation Slides is braced with multiple charts and graphs, overviews, analysis templates agenda slides etc. to help boost important aspects of your presentation. Highlight all sorts of related usable templates for important considerations. Our deck finds applicability amongst all kinds of professionals, managers, individuals, temporary permanent teams involved in any company organization from any field.
Building Your Employer Brand with Social MediaLuanWise
Presented at The Global HR Summit, 6th June 2024
In this keynote, Luan Wise will provide invaluable insights to elevate your employer brand on social media platforms including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok. You'll learn how compelling content can authentically showcase your company culture, values, and employee experiences to support your talent acquisition and retention objectives. Additionally, you'll understand the power of employee advocacy to amplify reach and engagement – helping to position your organization as an employer of choice in today's competitive talent landscape.
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...my Pandit
Dive into the steadfast world of the Taurus Zodiac Sign. Discover the grounded, stable, and logical nature of Taurus individuals, and explore their key personality traits, important dates, and horoscope insights. Learn how the determination and patience of the Taurus sign make them the rock-steady achievers and anchors of the zodiac.
Structural Design Process: Step-by-Step Guide for BuildingsChandresh Chudasama
The structural design process is explained: Follow our step-by-step guide to understand building design intricacies and ensure structural integrity. Learn how to build wonderful buildings with the help of our detailed information. Learn how to create structures with durability and reliability and also gain insights on ways of managing structures.
Brian Fitzsimmons on the Business Strategy and Content Flywheel of Barstool S...Neil Horowitz
On episode 272 of the Digital and Social Media Sports Podcast, Neil chatted with Brian Fitzsimmons, Director of Licensing and Business Development for Barstool Sports.
What follows is a collection of snippets from the podcast. To hear the full interview and more, check out the podcast on all podcast platforms and at www.dsmsports.net
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdfthesiliconleaders
In the recent edition, The 10 Most Influential Leaders Guiding Corporate Evolution, 2024, The Silicon Leaders magazine gladly features Dejan Štancer, President of the Global Chamber of Business Leaders (GCBL), along with other leaders.
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4. Company Profile
•Founded 1978
•Headquarters: Union, New Jersey
•CEO: Steven H. Temares
•Operates 1,496 stores in all 50 states
•58,000 employees
•Sector: Retail Home & Other
Brookdale Senior Living communities have provided exceptional senior living since 1978. Today, Brookdale Senior Living Inc. is the nation’s largest owner and operator of senior living communities throughout the United States and a leading national provider of senior-related services. It owns and operates senior living communities in the United States and operates in six segments:
•Retirement Centers
•Assisted Living
•CCRC – Rental
•CCRCs – Fee
•Ancillary Services
The Retirement Centers segment owns or leases communities comprising independent living and assisted living units in a single community that are primarily designed for middle to upper income senior citizens. The Assisted Living segment owns or leases communities consisting of freestanding, multi-story communities, and freestanding single story communities, which offer housing and 24-hour assistance with activities of daily life to mid-acuity frail and elderly residents. This segment also operates memory care communities for residents with Alzheimer's disease and other dementias. The CCRCs-Rental segment owns or leases communities that offer various living arrangements and services to accommodate various levels of physical ability and health. The CCRCs-Entry Fee segment allows residents in the independent living apartment units to pay a one-time upfront entrance fee to use certain amenities and services. The Brookdale Ancillary Services segment provides outpatient therapy, home health, and hospice services to residents of its communities, as well as to other senior living communities. The Management Services segment operates communities under the management agreements.
5. Investment Thesis
•Merger Synergies
–Cost savings
–Revenue growth
•Industry Leader
•Strong Sustained Growth in Customer Demographic
•Differentiator – Continuum of Care
•Durable Competitive Advantage
•Occupancy Growth
–Program Max 2.0
•Moderate Capacity Growth
•Resilient Pricing Power
•Some of the Parts (SOTP)
6. Merger Synergies
•Overhead cuts
•Operating leverage G&A consolidation
–Reduction in operating expenses by $45MM annually
•Greater purchasing power
Cost Savings
•Expanding BKDs ancillary services
•REIT HCP purchase options
–$160 (~$.90 per share of incremental EV) if exercised
•EF CCRC new revenue drivers
•Program Max 2.0
–Every $100MM CapEx spent on ESC facilities should yield $.04 to $.05 of incremental CFFO
Revenue
Management guided CFFO per share accretion of $.50 by year three
8. Industry Leader
Source: ALFA and Senior Living Executive – March/April 2014
BKD Business Mix by Property Type
ESC Business Mix by Property Type
BKD-ESC Combined Portfolio – Units by Type
9. Strong Sustained Customer Growth
•Seniors are living longer and need care for longer periods of time
•Children & grandchildren are increasingly unable to provide necessary care do to two-worker households
•75+ of age is the fastest growing demographic
•Little to no exposure to Medicaid cuts
•Seniors are highly exposed to interest rate income
Secular tail-winds in a favorable pricing power environment
11. Durable Competitive Advantage
•Nonresidential construction costs have been increasing
•With the combination of BKD and ESC scale, it will be hard for builders to come into the market and match price as well as services
–“the costs or the rent that the new developer needs to charge to justify the development risk that he or she has undertaken, generally speaking, is going to he higher than our rent, which ultimately gives us an opportunity to updraft our rent”1
•Time to get something out of the ground for new competitions, get it entitled, licensed, and opened takes at least 2 years and for larger communities three plus years
•Establishment of a strong brand name in senior care living will also grow the moat
1: 2014-06-05 BKD Jefferies Global Health Care Conference
12. Occupancy Growth
Stabilized Occupancy: Based on Top 31 MSAs (“Primary Markets”)
Model Occupancy Assumptions
Retirement CentersFY 2009FY 2010FY 2011FY 2012FY 2013FY 2014EFY 2015EFY 2016EFY 2017EOccupancy rate (weighted average)87.2%87.2%88.0%89.1%89.8%90.1%90.9%91.3%91.8% Average monthly revenue per unit$3,358$3,445$3,163$3,263$3,381$3,523$3,629$3,747$3,869YoY % change in average monthly rev per unit4.0%2.6%N/A3.2%3.6%4.2%3.0%3.3%3.3% Assisted LivingOccupancy rate (weighted average)86.8%88.4%88.2%88.9%89.7%90.2%90.9%91.3%91.8% Average monthly revenue per unit$4,401$4,573$4,275$4,390$4,510$4,625$4,763$4,918$5,078YoY % change in average monthly rev per unit17.7%3.9%N/A2.7%2.7%2.5%3.0%3.3%3.2% CCRCs - CombinedOccupancy rate (weighted average)85.1%84.3%84.8%85.1%85.6%86.0%86.2%86.4%86.6% Average monthly revenue per unit$5,168$5,517$5,838$5,323$5,411$5,514$5,620$5,760$5,904YoY % change in average monthly rev per unit8.6%6.8%N/A-8.8%1.7%1.9%1.9%2.5%2.5% Management ServicesOccupancy rate (weighted average)84.2%83.8%84.5%84.5%85.4%86.7%87.2%87.6%88.3% Average monthly revenue per unit$3,577$3,663$3,611$3,382$3,512$3,667$3,770$3,883$4,000YoY % change in average monthly rev per unit3.6%2.4%-1.4%-6.3%3.9%4.4%2.8%3.0%3.0%
13. Moderate Capacity Growth
Annual Inventory and Absorption Growth: Based on Top 31 MSAs
Not all new inventory is directly competing with BKD existing and new locations
Source: NIC MAP® Data and Analysis Service
14. Resilient Pricing Power
Annual Rent Growth: Based on Top 31 MSAs (“Primary Markets”)
•BKD has had average rate growth in the low to mid 3%. However, as their marketing/branding campaign begins to take affect I believe rate growth could increase further
Source: NIC MAP® Data and Analysis Service
15. SOTP Proforma 2015 Analysis
HI (marketed sale of company) Mid (REIT/opco split) Low (interest / cap rates rise)
Net SOTP per share, ex corporate G&A $44 $33 $24
Value of Owned Properties
Owned Lease Revs, does not include
bargin purchase options 1,871,888 1,871,888 1,871,888
Entry Fee Amortization (1,971) (1,971) (1,971)
Expenses 1,272,884 1,272,884 1,272,884
Facility Operating Margin 32.0% 32.0% 32.0%
Gross Property NOI 597,033 597,033 597,033
Subtract 1st Generation EF 0 0 0
Less imputed revenue mgmt fee -93,594 -93,594 -93,594
Net Property NOI, pre-capex 503,439 503,439 503,439
Capitalization Rate 5.50% 6.25% 7.00%
Gross Real Estate bf entrance fee value 9,153,432 8,055,020 7,191,982
Net Entrance Fees 7,400 7,400 7,400
Cap Rate 8.00% 9.50% 11.00%
Gross Value EF Cash Flows 92,500 77,895 67,273
Gross Value of Real Estate incl EF Value 9,245,932 8,132,915 7,259,255
Gross Value Per Share $53.46 $47.03 $41.97
Owned units 34,545 34,545 34,545
Estimated Value Per Unit 267,649 235,430 210,139
Net R/E Per Share 31.72 25.28 20.23
Valued of Leased Property Cash Flow
Lease revs, incl bargain purchase options 2,650,501 2,650,501 2,650,501
Expenses 1,802,341 1,802,341 1,802,341
Op Margin 32.0% 32.0% 32.0%
NOI leased assets 848,160 848,160 848,160
Less Cash Lease Rents, does not incl
rents on cap leases (400,292) (400,292) (400,292)
Less G&A allocation (132,525) (132,525) (132,525)
GAAP EF amortization - - -
Net Cash EF - - -
EBITDA 315,343 315,343 315,343
EBITDA Multiple 11.0 9.50 8.0
Value Per Share $20.06 $17.32 $14.59
PV of bargin purchase options $160,000 $150,000 $140,000
PV/sh of bargain purchase options $0.93 $0.87 $0.81
PV/sh (at beg of 2015) of rent reduction
in 2016 and 2017 $0.50 $0.32 $0.24
Ancillary Business Value
NOI 82,090 82,090 82,090
Multiple 9.0 7.5 6
Value Per Share 4.27 3.56 2.85
Management Business
(assumes real estate / opco split)
Management Fee Revenue 161,853 161,853 161,853
Estimated Operating Margin, incl. G&A 35.0% 30.0% 25.0%
Net Management Income 56,649 48,556 40,463
Assumed Multiple 7.0 6.0 5.0
Value Per Share 2.29 1.68 1.17
Construction in Progress
Assumed Value $0 $0 $0
Value Per Share $0.00 $0.00 $0.00
Tangible Assets
Cash - -
Current Assets, incl cash 525,667 525,667 525,667
Investments in Unconsolidated JV 326,991 326,991 326,991
Other tangible assets 293,354 293,354 293,354
Subtotal Assets $1,146,012 $1,146,012 $1,146,012
Liabilities
Mortgage Debt 3,760,391 3,760,391 3,760,391
Capital lease obligations 2,567,316 2,567,316 2,567,316
Credit Line draws 90,550 90,550 90,550
Current Liabilities, excluding debt 398,367 398,367 398,367
Deferred Lease Liability
Other tangible liabilities 849,206 849,206 849,206
Subtotal Adjusted Liabilities $7,665,830 $7,665,830 $7,665,830
NAV Balance Sheet ($37.70) ($37.70) ($37.70)
Average Diluted Shares Outstanding 172,945
HI (marketed sale of company) Mid (REIT/opco split) Low (interest / cap rates rise)
Net SOTP per share, ex corporate G&A $44 $33 $24
Value of Owned Properties
Owned Lease Revs, does not include
bargin purchase options 1,871,888 1,871,888 1,871,888
Entry Fee Amortization (1,971) (1,971) (1,971)
Expenses 1,272,884 1,272,884 1,272,884
Facility Operating Margin 32.0% 32.0% 32.0%
Gross Property NOI 597,033 597,033 597,033
Subtract 1st Generation EF 0 0 0
Less imputed revenue mgmt fee -93,594 -93,594 -93,594
Net Property NOI, pre-capex 503,439 503,439 503,439
Capitalization Rate 5.50% 6.25% 7.00%
Gross Real Estate bf entrance fee value 9,153,432 8,055,020 7,191,982
Net Entrance Fees 7,400 7,400 7,400
Cap Rate 8.00% 9.50% 11.00%
Gross Value EF Cash Flows 92,500 77,895 67,273
Gross Value of Real Estate incl EF Value 9,245,932 8,132,915 7,259,255
Gross Value Per Share $53.46 $47.03 $41.97
Owned units 34,545 34,545 34,545
Estimated Value Per Unit 267,649 235,430 210,139
Net R/E Per Share 31.72 25.28 20.23
$38.46 $28.91 $20.98
Discounted back 1.75yrs, 8%
16. SOTP Proforma 2016 Analysis
HI (marketed sale of company) Mid (REIT/opco split) Low (interest / cap rates rise)
Net SOTP per share, ex corporate G&A $56 $44 $34
Value of Owned Properties
Owned Lease Revs, does not include bargin
purchase options 1,962,791 1,962,791 1,962,791
Entry Fee Amortization (2,192) (2,192) (2,192)
Expenses 1,315,070 1,315,070 1,315,070
Facility Operating Margin 33.0% 33.0% 33.0%
Gross Property NOI 645,529 645,529 645,529
Subtract 1st Generation EF 0 0 0
Less imputed revenue mgmt fee -98,140 -98,140 -98,140
Net Property NOI, pre-capex 547,389 547,389 547,389
Capitalization Rate 5.50% 6.25% 7.00%
Gross Real Estate bf entrance fee value 9,952,531 8,758,227 7,819,846
Net Entrance Fees 7,400 7,400 7,400
Cap Rate 8.00% 9.50% 11.00%
Gross Value EF Cash Flows 92,500 77,895 67,273
Gross Value of Real Estate incl EF Value 10,045,031 8,836,122 7,887,118
Gross Value Per Share $57.50 $50.58 $45.15
Owned units 34,545 34,545 34,545
Estimated Value Per Unit 290,781 255,786 228,314
Net R/E Per Share 37.85 30.93 25.50
Valued of Leased Property Cash Flow
Lease revs, incl bargain purchase options 2,779,214 2,779,214 2,779,214
Expenses 1,862,073 1,862,073 1,862,073
Op Margin 33.0% 33.0% 33.0%
NOI leased assets 917,141 917,141 917,141
Less Cash Lease Rents, does not incl rents on
cap leases (404,902) (404,902) (404,902)
Less G&A allocation (138,961) (138,961) (138,961)
GAAP EF amortization - - -
Net Cash EF - - -
EBITDA 373,277 373,277 373,277
EBITDA Multiple 11.0 9.50 8.0
Value Per Share $23.51 $20.30 $17.09
PV of bargin purchase options $160,000 $150,000 $140,000
PV/sh of bargain purchase options $0.92 $0.86 $0.80
PV/sh of rent reduction in 2016 and 2017
(calculation below) $0.56 $0.34 $0.25
Ancillary Business Value
NOI 89,540 89,540 89,540
Multiple 9.0 7.5 6
Value Per Share 4.61 3.84 3.08
Management Business
(assumes real estate / opco split)
Management Fee Revenue 166,398 166,398 166,398
Estimated Operating Margin, incl. G&A 35.0% 30.0% 25.0%
Net Management Income 58,239 49,920 41,600
Assumed Multiple 7.0 6.0 5.0
Value Per Share 2.33 1.71 1.19
Construction in Progress
Assumed Value $0 $0 $0
Value Per Share $0.00 $0.00 $0.00
Tangible Assets
Cash - - -
Current Assets, incl cash 881,550 881,550 881,550
Investments in Unconsolidated JV 326,991 326,991 326,991
Other tangible assets 293,354 293,354 293,354
Subtotal Assets $1,501,895 $1,501,895 $1,501,895
Liabilities
Mortgage Debt, assumes 2016 cash flow
repays debt 3,432,394 3,432,394 3,432,394
Capital lease obligations 2,567,316 2,567,316 2,567,316
Credit Line draws 90,550 90,550 90,550
Current Liabilities, excluding debt 398,367 398,367 398,367
Deferred Lease Liability
Other tangible liabilities 849,206 849,206 849,206
Subtotal Adjusted Liabilities $7,337,833 $7,337,833 $7,337,833
NAV Balance Sheet ($33.41) ($33.41) ($33.41)
Average Diluted Shares Outstanding 174,685
HI (marketed sale of company) Mid (REIT/opco split) Low (interest / cap rates rise)
Net SOTP per share, ex corporate G&A $56 $44 $34
Value of Owned Properties
Owned Lease Revs, does not include bargin
purchase options 1,962,791 1,962,791 1,962,791
Entry Fee Amortization (2,192) (2,192) (2,192)
Expenses 1,315,070 1,315,070 1,315,070
Facility Operating Margin 33.0% 33.0% 33.0%
Gross Property NOI 645,529 645,529 645,529
Subtract 1st Generation EF 0 0 0
Less imputed revenue mgmt fee -98,140 -98,140 -98,140
Net Property NOI, pre-capex 547,389 547,389 547,389
Capitalization Rate 5.50% 6.25% 7.00%
Gross Real Estate bf entrance fee value 9,952,531 8,758,227 7,819,846
Net Entrance Fees 7,400 7,400 7,400
Cap Rate 8.00% 9.50% 11.00%
Gross Value EF Cash Flows 92,500 77,895 67,273
Gross Value of Real Estate incl EF Value 10,045,031 8,836,122 7,887,118
Gross Value Per Share $57.50 $50.58 $45.15
Owned units 34,545 34,545 34,545
Estimated Value Per Unit 290,781 255,786 228,314
Net R/E Per Share 37.85 30.93 25.50
$45.32 $35.61 $27.51
Discounted back 2.75yrs, 8%
17. SOTP Proforma 2017 Analysis
HI (marketed sale of company) Mid (REIT/opco split) Low (interest / cap rates rise)
Net SOTP per share, ex corporate G&A $69 $49 $38
Value of Owned Properties
Owned Lease Revs, does not include bargin
purchase options 2,062,651 2,062,651 2,062,651
Entry Fee Amortization (2,413) (2,413) (2,413)
Expenses 1,361,349 1,361,349 1,361,349
Facility Operating Margin 34.0% 34.0% 34.0%
Gross Property NOI 698,888 698,888 698,888
Subtract 1st Generation EF 0 0 0
Less imputed revenue mgmt fee -103,133 -103,133 -103,133
Net Property NOI, pre-capex 595,755 595,755 595,755
Capitalization Rate 5.50% 6.25% 7.00%
Gross Real Estate bf entrance fee value 10,831,918 9,532,087 8,510,792
Net Entrance Fees 7,400 7,400 7,400
Cap Rate 8.00% 9.50% 11.00%
Gross Value EF Cash Flows 92,500 77,895 67,273
Gross Value of Real Estate incl EF Value 10,924,418 9,609,982 8,578,065
Gross Value Per Share $61.92 $54.47 $48.62
Owned units 34,545 34,545 34,545
Estimated Value Per Unit 316,237 278,187 248,316
Net R/E Per Share 44.37 36.92 31.07
Valued of Leased Property Cash Flow
Lease revs, incl bargain purchase options 2,920,611 2,920,611 2,920,611
Expenses 1,927,603 1,927,603 1,927,603
Op Margin 34.0% 34.0% 34.0%
NOI leased assets 993,008 993,008 993,008
Less Cash Lease Rents, does not incl rents
on cap leases (407,318) (407,318) (407,318)
Less G&A allocation (146,031) (146,031) (146,031)
GAAP EF amortization - - -
Net Cash EF - - -
EBITDA 439,659 439,659 439,659
EBITDA Multiple 11.0 9.50 8.0
Value Per Share $27.41 $23.67 $19.94
PV of bargin purchase options $160,000 $150,000 $140,000
PV/sh of bargain purchase options $0.91 $0.85 $0.79
PV/sh of rent reduction in 2016 and 2017
(calculation below) $0.00 $0.00 $0.00
Ancillary Business Value
NOI 95,693 95,693 95,693
Multiple 9.0 7.5 6
Value Per Share 4.88 4.07 3.25
Management Business
(assumes real estate / opco split)
Management Fee Revenue 175,207 175,207 175,207
Estimated Operating Margin, incl. G&A 35.0% 30.0% 25.0%
Net Management Income 61,323 52,562 43,802
Assumed Multiple 7.0 6.0 5.0
Value Per Share 2.43 1.79 1.24
Construction in Progress
Assumed Value $0 $0 $0
Value Per Share $0.00 $0.00 $0.00
Tangible Assets
Cash - - -
Current Assets, incl cash 1,270,998 882 882
Investments in Unconsolidated JV 326,991 326,991 326,991
Other tangible assets 293,354 293,354 293,354
Subtotal Assets $1,891,343 $621,227 $621,227
Liabilities
Mortgage Debt, assumes 2016 and 2017
cash flow repay debt 3,095,721 3,095,721 3,095,721
Capital lease obligations 2,567,316 2,567,316 2,567,316
Credit Line draws 90,550 90,550 90,550
Current Liabilities, excluding debt 398,367 398,367 398,367
Deferred Lease Liability
Other tangible liabilities 849,206 849,206 849,206
Subtotal Adjusted Liabilities $7,001,160 $7,001,160 $7,001,160
NAV Balance Sheet ($28.96) ($36.16) ($36.16)
Average Diluted Shares Outstanding 176,425
HI (marketed sale of company) Mid (REIT/opco split) Low (interest / cap rates rise)
Net SOTP per share, ex corporate G&A $69 $49 $38
Value of Owned Properties
Owned Lease Revs, does not include bargin
purchase options 2,062,651 2,062,651 2,062,651
Entry Fee Amortization (2,413) (2,413) (2,413)
Expenses 1,361,349 1,361,349 1,361,349
Facility Operating Margin 34.0% 34.0% 34.0%
Gross Property NOI 698,888 698,888 698,888
Subtract 1st Generation EF 0 0 0
Less imputed revenue mgmt fee -103,133 -103,133 -103,133
Net Property NOI, pre-capex 595,755 595,755 595,755
Capitalization Rate 5.50% 6.25% 7.00%
Gross Real Estate bf entrance fee value 10,831,918 9,532,087 8,510,792
Net Entrance Fees 7,400 7,400 7,400
Cap Rate 8.00% 9.50% 11.00%
Gross Value EF Cash Flows 92,500 77,895 67,273
Gross Value of Real Estate incl EF Value 10,924,418 9,609,982 8,578,065
Gross Value Per Share $61.92 $54.47 $48.62
Owned units 34,545 34,545 34,545
Estimated Value Per Unit 316,237 278,187 248,316
Net R/E Per Share 44.37 36.92 31.07
$51.40 $36.48 $28.24
Discounted back 3.75yrs, 8%
18. SOTP Proforma 2018 Analysis
Discounted back 4.75yrs, 8%
Net SOTP per share, ex corporate G&A $72 $52 $40
Value of Owned Properties $53.92 $38.69 $30.20
Owned Lease Revs, does not include bargin
purchase options 2,172,583 2,172,583 2,172,583
Entry Fee Amortization (2,413) (2,413) (2,413)
Expenses 1,433,905 1,433,905 1,433,905
Facility Operating Margin 34.0% 34.0% 34.0%
Gross Property NOI 736,265 736,265 736,265
Subtract 1st Generation EF 0 0 0
Less imputed revenue mgmt fee -108,629 -108,629 -108,629
Net Property NOI, pre-capex 627,636 627,636 627,636
Capitalization Rate 5.50% 6.25% 7.00%
Gross Real Estate bf entrance fee value 11,411,562 10,042,175 8,966,228
Net Entrance Fees 7,400 7,400 7,400
Cap Rate 8.00% 9.50% 11.00%
Gross Value EF Cash Flows 92,500 77,895 67,273
Gross Value of Real Estate incl EF Value 11,504,062 10,120,070 9,033,500
Gross Value Per Share $65.21 $57.36 $51.20
Owned units 34,545 34,545 34,545
Estimated Value Per Unit 333,017 292,953 261,500
Net R/E Per Share 47.66 39.81 33.66
$53.92 $38.69 $30.20
19. •Several bidders tends to result in a “winners curse” scenario
Timeline of BKD-ESC deal
Source: BKD-ESC S-4 filing
BKD Paid Up For ESC
20. BofA ESC BKD CSU FVE Avg. Low High Low High
2014E EV/EBITDA 11.8x 12.3x 15.2x NA 13.7x $14.75 $31.50 $24.50 $32.75
2014E Price/adjusted CFFO 8.5x 10.9x 14.0x NA 12.4x $20.75 $27.00 $25.50 $33.00
2014E Adj EV/GAAP EBITDAR 11.3x 11.6x 12.9x NA 12.2x $18.50 $41.75 $26.25 $38.25
Cash EBITDA CAGR (2013E-2015) 17.9% 10.6% 21.1% NA 15.8%
CSCA ESC BKD CSU FVE Avg. Low High Low High
2014E EV/cash EBITDA 10.1x 13.1x 15.2x NA 13.0x
9.5x 10.9x 14.0x NA 11.5x
Average $22.21 $31.53 $22.05 $33.01
BKD per share range
ESC per share range BKD per share range
ESC per share range
Wells Fargo
Avg.
(ESC, BKD,
CSU, FVE)
Avg.
(ESC selected
comp only)
Avg.
(BKD selected
comp only) Low High Low High
2014E EV/EBITDAR 11.5x 11.6x 11.3x
2014E EV/EBITDAR 11.8x 11.7x 11.4x
2014E EV/cash EBITDA 10.7x 11.0x 10.1x
2014E Price/CFFO 11.4x 12.6x 11.6x
2015E EV/EBITDAR 10.9x 10.7x 10.9x
2015E EV/EBITDAR 10.6x 10.2x 10.0x
2015E EV/cash EBITDA 9.6x 9.7x 8.9x
2015E Price/CFFO 10.2x 11.2x 10.2x
Average $19.50 $27.00 $24.00 $28.75
ESC per share range BKD per share range
Moelis Low High Low High
2013A EV adj EBITDA $21.80 $29.33 $26.97 $30.59
2013A adj EV/adj EBITDAR $19.84 $30.17 $22.34 $27.71
2013A Price/adj CFFO $20.94 $24.60 $26.57 $31.40
2014A EV adj EBITDA $16.89 $25.11 $26.63 $30.70
2014A adj EV/adj EBITDAR $16.43 $28.25 $21.92 $27.78
2014A Price/adj CFFO 9.0x to 11.0x $20.20 $24.51 $24.27 $29.66
13.0x to 14.0x
12.0x to 13.0x
11.0x to 13.0x
11.5x to 12.5x
11.0x to 12.0x
ESC per share range BKD per share range
Avg.
(ESC, BKD, CSU, FVE)
BKD Paid Up For ESC
21. Balance Sheet
Brookdale - Debt Schedule - assumes debt maturity extensions, includes capital leases
Per 1Q14 Supplement
Mortgage Debt + Line Rate % debt Capital Lease Rate Total Debt Rate % debt
2014 24,630 3.85% 1.1% 24,906 7.99% 49,536 5.9% 1.9%
2015 28,176 4.09% 1.2% 34,491 8.08% 62,667 6.3% 2.4%
2016 60,124 4.60% 2.6% 29,861 8.32% 89,985 5.8% 3.4%
2017 359,729 5.30% 15.5% 61,256 8.15% 420,985 5.7% 16.1%
2018 785,062 3.41% 33.9% 24,172 8.48% 809,234 3.6% 31.0%
Thereafter 1,058,659 3.95% 45.7% 118,341 7.98% 1,177,000 4.4% 45.1%
2,316,380 3.99% 100.0% 293,027 8.10% 2,609,407 4.5% 100.0%
• ~40% of BKD debt is floating rate
– Most is capped, some swapped
Interest Coverage
Memo Items: Interest expense $159.6 $149.9 $134.5 $209.2 $409.3 $409.3 $409.3 $409.3
Capital expenditures 160.1 208.4 257.5 243.6 344.8 361.1 378.9 398.3
EBIT / Interest expense 0.7x 0.7x 1.1x 1.1x 1.4x 1.6x 1.7x 1.7x
EBITDA / Interest expense 2.3x 2.3x 3.1x 2.7x 2.4x 2.7x 2.9x 3.0x
EBITDA - Capital expenditures / Interest expense 1.3x 1.0x 1.2x 1.5x 1.6x 1.8x 2.0x 2.0x
Capitalization*
Total debt $2,536.1 $2,758.4 $2,723.4 $6,674.1 $6,655.1 $6,655.1 $6,655.1 $6,655.1
Total stockholders' equity 1,040.2 1,002.7 1,040.0 2,638.5 2,850.1 3,114.0 3,391.8 3,650.8
Total capitalization 3,576.3 3,761.1 3,763.4 9,312.6 9,505.3 9,769.2 10,046.9 10,306.0
Return on Invested Capital 3.0% 2.7% 3.9% 2.4% 6.0% 6.3% 6.3% 5.9%
Brookdale – Debt Schedule – includes capital leases
Leverage*
Total debt / Total capitalization 0.7x 0.7x 0.7x 0.7x 0.7x 0.7x 0.7x 0.6x
Total debt / EBITDA 6.8x 7.8x 6.6x 12.0x 6.7x 6.0x 5.6x 5.5x
*all recorded at book value
22. •Management synergy targets are on the conservative side and could exceed the guided $.50
•Program Max 2.0
–Longer time horizon but may produce better CFFO results than forecasted
•Demand continues to outstrip supply
•Brand awareness campaign yields better than expected results
•Any hint that management may return to paying a dividend in the future
Catalysts Adjusted EBITDA557.9991.71,101.01,186.31,208.9Less: Recurring capital expenditures, net(45.4)(72.0)(76.0)(80.0)(84.0) Less: Interest expense, net(209.2)(409.3)(409.3)(409.3)(409.3) Less: Lease financing debt amortization with fair market value or no purchase options(15.8)(15.8)(15.8)(15.8)(15.8) Less: Distributions from unconsolidated ventures from cumulative share of net earnings0.00.00.00.00.0Add: Cash from Facility Operations from unconsolidated ventures9.010.014.018.020.0Less: Other0.50.50.50.50.5Less taxes(2.4)8.9(28.6)(78.6)(96.5) Reported CFFO294.5514.0585.8621.1623.9Add: integration and transaction-related costs24.013.013.013.013.0Adjusted CFFO318.5527.0598.8634.1636.9Adjusted CFFO/share$2.33$3.05$3.43$3.63$3.65
23. • Integration of ESC
– Potential cultural fit for the new ESC
employees
– Largest integration BKD has
undertaken
– ESC DOJ investigation
Risks
• Reduction in occupancy
– Low in 2009 was 86.2% for BKD
• Significant increase in new
construction/capacity
• Increased competition and
reduction in pricing power
• Significant rise in interest rates
Supply-Demand in Top 10 Majority Assisted Living Markets
vs. Senior Living Operators’ Share
25. Summary
•Merger Synergies
–Cost savings
–Revenue growth
•Industry Leader
•Strong Sustained Growth in Customer Demographic
•Differentiator – Continuum of Care
•Durable Competitive Advantage
•Occupancy Growth
–Program Max 2.0
•Moderate Capacity Growth
•Resilient Pricing Power
•Some of the Parts (SOTP)
27. Income Statement Income Statement for Brookdale Senior Living IncDollars in millions, except per share2013 - 2018Historical Year Ending December 31,Projected Year Ending December 31,CAGR20112012201320142015201620172018Sales Retirement Centers$473.8$503.9$526.3$542.1$569.2$597.6$627.5$658.9 Assisted Living964.61,013.31,051.91,451.62,903.23,019.33,146.13,284.5 CCRCs -rental (combined with enry fee before Q1'2011)364.1385.5397.0416.8479.3498.5518.5539.2 CCRCs - entry fee283.5287.0297.8303.760.765.674.187.5 ISC and other Ancillary services205.8224.5242.2314.8510.0561.0617.1678.8Resident Fees2,291.82,414.32,515.03,029.04,522.44,742.04,983.35,248.915.9% Management Fees13.631.331.139.864.567.169.872.6Reimbursed Costs incured on behalf of managed communities152.6325.0345.8442.6717.1745.8775.6806.618.5% Total Revenue$2,457.9$2,770.6$2,892.0$3,511.5$5,304.0$5,554.9$5,828.6$6,128.116.2% Cost of sales Retirement centers275.4298.3304.0309.0313.0328.1338.9355.1 Assisted Living624.7652.2662.2914.51,727.41,781.41,840.51,970.7 CCRCs - rental (combined with entry fee before Q1'2011)247.2279.4287.9302.2335.5344.0352.6361.3 CCRCs - entry fee213.5224.3221.4228.743.146.652.662.1 ISC & other ancillary services147.8176.7196.4258.1397.8415.1456.6502.3Facility operating expense1,508.61,630.91,671.92,012.52,816.92,915.13,041.13,251.5General & administrative expense148.3178.8184.5214.2291.7300.0308.9318.7Facility lease expense/Rent274.9284.0276.7305.5403.1422.2443.0465.7Depreciation & Amortization268.5252.3268.8328.8434.4454.9477.4501.9Asset Impairment16.927.712.90.00.00.00.00.0Loss (gain) on acquisition(2.0)0.60.00.00.00.00.00.0Costs incurred on behalf of managed communities152.6325.0345.8421.4800.6816.6849.3883.312.0% Facility Lease termination expense0.0(11.6)0.00.00.00.00.00.0Other expenses0.00.00.00.00.00.00.00.0Total operating expenses$2,367.7$2,687.8$2,760.7$3,282.4$4,746.7$4,908.9$5,119.7$5,421.114.4% Income from Operations90.282.8131.3229.1557.3646.0709.0707.0General & administrative expense148.3178.8184.5214.2291.7300.0308.9318.7Costs incurred on behalf of managed communities152.6325.0345.8421.4800.6816.6849.3883.3EBITDAR648.5635.8689.7863.41,394.81,523.11,629.31,674.6Facility lease expense/Rent274.9284.0276.7305.5403.1422.2443.0465.7EBITDA373.6351.8412.9557.9991.71,101.01,186.31,208.924.0% Depreciation & Amortization268.5252.3268.8328.8434.4454.9477.4501.9EBIT 105.199.5144.2229.1557.3646.0709.0707.037.4% Interest expense (5)159.6149.9134.5209.2409.3409.3409.3409.3Interest (income)(3.5)(4.0)(1.3)(0.3)(0.7)(1.8)(2.7)(3.8) Pretax Income(65.8)(63.1)(1.8)20.2148.7238.5302.4301.5Income taxes (1) (2) (3) (4) (5) (6)(2.3)(2.0)(1.8)2.4(8.9)28.678.696.5Net Income($68.1)($65.2)($3.6)$17.8$157.6$209.9$223.8$205.0Diluted weighted average shares (in millions)121.160121.991123.671136.945172.945174.685174.685174.6857.2% Earnings Per Share($0.56)($0.53)($0.03)$0.13$0.91$1.20$1.28$1.172014 Consensus EPS $.17
28. Income Statement Assumptions Ratios & AssumptionsSales growth rate12.7%4.4%21.4%51.0%4.7%4.9%5.1% Gross margin61.4%58.9%57.8%57.3%53.1%52.5%52.2%53.1% SG&A expenses (as a % of sales)6.0%6.5%6.4%6.0%6.0%6.0%6.0%6.0% Other operating (income) / expense (amount)$648.5$635.8$689.7$863.4$1,394.8$1,523.1$1,629.3$1,674.6Effective tax rate3.5%3.2%96.1%12.0%(6.0%)12.0%26.0%32.0% Income statement ratios (as a % of reveune) Retirement Centers (as a % of retirement center revenue)58.1%59.2%57.8%57.0%55.0%54.9%54.0%53.9% Assisted Living (as a % of assisted living revenue)64.8%64.4%63.0%63.0%59.5%59.0%58.5%60.0% CCRCs - rental (as a % of CCRCs-rental revenue)67.9%72.5%72.5%72.5%70.0%69.0%68.0%67.0% CCRCs - entry fee (as a % of CCRCs-entyr fee revnue)75.3%78.1%74.3%75.3%71.0%71.0%71.0%71.0% ISC and other ancillary services (as a % of ISC - revenue)71.8%78.7%81.1%82.0%78.0%74.0%74.0%74.0% Facility operating expense (as % of revenue)61.4%58.9%57.8%57.3%53.1%52.5%52.2%53.1% General and admisistrative expense (as a % of revenue)6.0%6.5%6.4%6.1%5.5%5.4%5.3%5.2% Facility lease expense (as a % of revenue)11.2%10.3%9.6%8.7%7.6%7.6%7.6%7.6% Depreciation and amortization ( as % of reveune)10.9%9.1%9.3%9.4%8.2%8.2%8.2%8.2% (Provision) benefit for income taxes3.5%3.2%96.1%7.5%7.5%7.5%7.5%7.5% Ratios (as a % of sales) Retirement Centers19.3%18.2%18.2%15.4%10.7%10.8%10.8%10.8% YOY Growth3.0%5.0%5.0%5.0%5.0% Assisted Living39.2%36.6%36.4%41.3%54.7%54.4%54.0%53.6% YOY Growth38.0%100.0%4.0%4.2%4.4% CCRCs -rental (combined with enry fee before Q1'2011)14.8%13.9%13.7%11.9%9.0%9.0%8.9%8.8% YOY Growth5.0%15.0%4.0%4.0%4.0% CCRCs - entry fee11.5%10.4%10.3%8.6%1.1%1.2%1.3%1.4% YOY Growth2.0%(80.0%)8.0%13.0%18.0% ISC and other Ancillary services8.4%8.1%8.4%9.0%9.6%10.1%10.6%11.1% YOY Growth30.0%62.0%10.0%10.0%10.0% Resident Fees93.2%87.1%87.0%86.3%85.3%85.4%85.5%85.7% YOY Growth28.0%62.0%4.0%4.0%4.0% Management Fees0.6%1.1%1.1%1.1%1.2%1.2%1.2%1.2% YOY Growth28.0%62.0%4.0%4.0%4.0% Reimbursed Costs incured on behalf of managed communities6.2%11.7%12.0%12.6%13.5%13.4%13.3%13.2% YOY Growth28.0%62.0%4.0%4.0%4.0%
29. Balance Sheet Balance Sheet for Brookdale Senior Living IncDollars in millions, except per shareHistorical Year Ending December 31,Projected Year Ending December 31,20112012201320142015201620172018Cash$76.7$112.3$96.7$50.0$518.1$896.5$1,302.3$1,724.3Accounts receivables, net98.7100.4104.3136.6206.3216.0226.7238.3Inventories0.00.00.00.00.00.00.00.0Other current assets105.496.393.987.8132.6138.9145.7153.2Total Current Assets:280.9309.0294.9274.3856.91,251.41,674.72,115.8PP&E, net3,694.13,880.03,895.59,309.69,220.09,126.19,027.68,924.0Ristricted cash & investments84.762.857.657.657.657.657.657.6Indefinite life intangibles0.00.00.08.524.630.331.614.9Goodwill263.7269.5268.3442.0442.0442.0442.0442.0Other long-term assets142.7144.7221.5221.5221.5221.5221.5221.5Total Assets:$4,466.1$4,666.0$4,737.8$10,313.6$10,822.6$11,128.8$11,455.0$11,775.9Accounts payable$54.1$43.2$65.8$67.1$93.9$97.2$101.4$108.4Accrued liabilities183.6200.9209.5221.4309.9320.7334.5357.7Other current liabilities7.76.55.20.0201.1229.4259.7291.4Refund. Entry Fees & Deferred Rev.327.8361.4388.4407.4407.4407.4407.4407.4Total Current Liabilities:573.3612.0668.9695.91,012.31,054.61,103.01,164.9Long-term debt deferred entry fee revenue72.579.086.919.00.00.00.00.0Long-term debt 2,463.62,679.42,636.66,655.16,655.16,655.16,655.16,655.1Other long-term liabilities316.4292.9305.5305.0305.0305.0305.0305.0Total Liabilities:3,425.93,663.33,697.87,675.07,972.58,014.88,063.28,125.0Total equity1,040.21,002.71,040.02,638.52,850.13,114.03,391.83,650.8Total Liabilities and Equity:$4,466.1$4,666.0$4,737.8$10,313.6$10,822.6$11,128.8$11,455.0$11,775.9Parity check (A = L+E)0.0000.0000.0000.0000.0000.0000.0000.000
30. Cash Flow Projected Cash Flow Statement for Brookdale Senior Living IncDollars in millions, except per shareProjected Year Ending December 31,20142015201620172018Operating ActivitiesNet Income$17.8$157.6$209.9$223.8$205.0Stock-based compensation expense36.154.054.054.054.0Depreciation328.8434.4454.9477.4501.9Amortization0.00.00.00.00.0(Increase)/decrease in working capital56.3185.820.729.559.4(Increase)/decrease in other long-term assets and liabilities(174.1)0.00.00.00.0Cash Flow from Operating Activities:264.9831.8739.5784.7820.3Investing ActivitiesCapital expenditures(243.6)(344.8)(361.1)(378.9)(398.3) Acquisition(4,018.6)0.00.00.00.0Cash Flow from Investing Activities:(4,262.2)(344.8)(361.1)(378.9)(398.3) CASH FLOW AVAILABLE FOR FINANCING ACTIVITIES(3,997.4)487.0378.4405.8422.0Financing ActivitiesIssuance / (repayment) of revolver(67.9)(19.0)0.00.00.0Issuance of long-term debt4,018.60.00.00.00.0(Repayment) of long-term debt0.00.00.00.00.0Repurchase of equity0.00.00.00.00.0Dividends0.00.00.00.00.0Option proceeds0.00.00.00.00.0Cash Flow from Financing Activities:3,950.7(19.0)0.00.00.0Net Change in Cash(46.7)468.1378.4405.8422.0Beginning cash balance96.750.0518.1896.51,302.3Ending cash balance$50.0$518.1$896.5$1,302.3$1,724.3
31. NWC Working Capital Schedule for Brookdale Senior Living IncDollars in millions, except per shareHistorical Year Ending December 31,Projected Year Ending December 31,20112012201320142015201620172018Sales$2,457.9$2,770.6$2,892.0$3,511.5$5,304.0$5,554.9$5,828.6$6,128.1Cost of sales 1,508.61,630.91,671.92,012.52,816.92,915.13,041.13,251.5Working Capital BalancesAccounts receivables, net$98.7$100.4$104.3$136.6$206.3$216.0$226.7$238.3Inventories0.00.00.00.00.00.00.00.0Other current assets105.496.393.987.8132.6138.9145.7153.2Total Non-Cash Current Assets:$204.1$196.7$198.2$224.3$338.9$354.9$372.4$391.5Accounts payable$54.1$43.2$65.8$67.1$93.9$97.2$101.4$108.4Accrued liabilities183.6200.9209.5221.4309.9320.7334.5357.7Other current liabilities335.5367.9393.6462.9647.9670.5699.5747.8Total Non-Debt Current Liabilities:$573.3$612.0$668.9$751.3$1,051.6$1,088.3$1,135.4$1,213.9NET WORKING CAPITAL / (DEFICIT)($369.2)($415.3)($470.7)($527.0)($712.8)($733.4)($763.0)($822.4) (Increase)/Decrease in Working Capital$46.1$55.5$56.3$185.8$20.7$29.5$59.4Ratios and AssumptionsNumbers of days in the period360 cell is named "Days" Accounts receivables, net (collection period in days)14.513.013.014.014.014.014.014.0Inventories (days outstanding)0.00.00.00.00.00.00.00.0Other current assets (as % of sales)4.3%3.5%3.2%2.5%2.5%2.5%2.5%2.5% Accounts payable (days outstanding)12.99.514.212.012.012.012.012.0Accrued liabilities (as % of cost of sales)12.2%12.3%12.5%11.0%11.0%11.0%11.0%11.0% Other current liabilities (as % of cost of sales)22.2%22.6%23.5%23.0%23.0%23.0%23.0%23.0%