4. REVENUES COGS GROSS PROFIT SG&A DEPRECIATION OPERATING INCOME EBITDA DEBT 1 3,000 1,800 1,200 700 140 360 500 2,200 2 3,150 1,860 1,290 720 140 430 570 2,200 3 3,308 1,923 1,385 740 140 505 645 2,200 Notes: (1) COGS was 67% variable in year 1 (2) Revenue increase was soley due to volume (1) COGS was 67% variable in year 1 (2) Revenue increase was soley due to volume Assume this is a cyclical company. In the last recession sales decreased 20%, all due to volume. 1. Forecast Revenues, gross profit, SG&A and EBITDA in year 4, assuming a recession 2. Calculate Debt/EBITDA and interest coverage in year 4. A B D ADJUSTMENTS E PRO FORMA REVENUES COGS GROSS PROFIT SG&A DEPRECIATION OPERATING INCOME EBITDA 1 DEBT C. Year 1 3,000 1,800 1,200 700 140 360 500 2,200 2 1 5 The company above purchased another company in the same industry, financed with $2,000 debt. Revenues were - $2,500, with similar gross margins. Assume SG&A 5 increaca con E 16 A B C D 14 15 The company above purchased another company in the same industry, financed with $2,000 debt. Revenues were 17 $2,500, with similar gross margins. Assume SG&A 18 increases $600. Assume no incremental depreciation. 19 20 21 1. Fill in the adjustments and pro forma column. 22 23 24 25 26 2. Calculate Debt/EBITDA and interest coverage in the 27 pro forma column. 28 4. REVENUES COGS GROSS PROFIT SG&A DEPRECIATION OPERATING INCOME EBITDA DEBT 1 3,000 1,800 1,200 700 140 360 500 2,200 2 3,150 1,860 1,290 720 140 430 570 2,200 3 3,308 1,923 1,385 740 140 505 645 2,200 Notes: (1) COGS was 67% variable in year 1 (2) Revenue increase was soley due to volume (1) COGS was 67% variable in year 1 (2) Revenue increase was soley due to volume Assume this is a cyclical company. In the last recession sales decreased 20%, all due to volume. 1. Forecast Revenues, gross profit, SG&A and EBITDA in year 4, assuming a recession 2. Calculate Debt/EBITDA and interest coverage in year 4. A B D ADJUSTMENTS E PRO FORMA REVENUES COGS GROSS PROFIT SG&A DEPRECIATION OPERATING INCOME EBITDA 1 DEBT C. Year 1 3,000 1,800 1,200 700 140 360 500 2,200 2 1 5 The company above purchased another company in the same industry, financed with $2,000 debt. Revenues were - $2,500, with similar gross margins. Assume SG&A 5 increaca con E 16 A B C D 14 15 The company above purchased another company in the same industry, financed with $2,000 debt. Revenues were 17 $2,500, with similar gross margins. Assume SG&A 18 increases $600. Assume no incremental depreciation. 19 20 21 1. Fill in the adjustments and pro forma column. 22 23 24 25 26 2. Calculate Debt/EBITDA and interest coverage in the 27 pro forma column. 28
