Income Statement

The revenue from the current businesses will increase at an annual rate of 5.0% since 2020

The acquisition will add $75.0 million of incremental revenue in 2020 and the incremental revenue will increase at an annual rate of 5.0% thereafter

Cost of services will be 62.5% of revenue

SG&A expense will be 9.5% of revenue

Depreciation expense will be 7.5% of revenue

Interest expense will be based on the average long-term debt outstanding in the

current and previous years

Interest rate is assumed to constant at 7.5%

Tax rate is assumed to be constant at 25.0%

Balance Sheet

Constant operating cash level of $10.0 million

Days sales in accounts receivable is 35 days

Inventory turnover (=cost of services/inventory) is 30 (inventory consists of recyclable materials resold)

Net capital spending is at 8.0% of revenue

Other long-term assets is at 1.0% of revenue

Days days cost of services (COS) in accounts payable is 50 days

Accrued expense is at 2.0% of COS

Other long-term liabilities is at 1.5% of COS

Dividend payout ratio is assumed to be 50% in the following five years

WCC has 10 million shares outstanding

You are a financial analyst in the financial planning and analysis department of WCC. You have been assigned the following:

Complete a five-year forecast based on the above assumptions.

Based on 2020, explain if WCC is, more or less leveraged than the competitors. Please

use three measures: (1) interest coverage ratio, (2) Debt/EBITDA, and (3) Debt/Equity

WASTE CONTROL CONCEPTS CORPORATION ($000) Actual 2015 Actual 2016 Actual 2017 Actual 2018 Actual 2019 Forecast 2020 Forecast 2021 Forecast 2022 Forecast 2022 Forecast 2024 $ 250,000.0 $ 268,000.0 $ 284,000.0 % 155,500.0 166,000.0 177,835.0 94,500.0 102,000.0 106,165.0 25,500.0 26,700.0 28,700.0 20,325.0 22,415.0 21,900.0 45,825.0 49,115.0 50,600.0 48,675.0 52,885.0 55,565.0 4,875.0 4,687.5 4,312.5 43,800.0 48,197.5 51,252.5 10,950.0 12,049.4 12,813.1 $ 32,850.0 $ 36,148.1 $ 38,439.4 $ 300,000.0 $ 315,000.0 188,900.0 197,250.0 111,100.0 117,750,0 29,600.0 30,760.0 22,550.0 24,195.0 52,150.0 54,955.0 58,950.0 62,795.0 3,937.5 3,562.5 55,012.5 59,232.5 13,753.1 14,808.1 41,259.4 $ 44,424.4 $ 10,000.0 $ 10,000,0 $ 10,000,0 $ 10,000,0 $ 10,000.0 Income Statement Revenue Cast of services Grass profit SG&A expense Depreciation expense Total expenses EBIT Interest Expense Pretax Profit Tax Net Income Balance Sheet Cash Accounts receivable Inventory Total current assets Net fixed assets Other long-term assets Total Assets Accounts Payable Accrued Expenses Total Current Liabilities Debt - long-term Other long-term liabilities Total Liabilities Common stock Retained earnings Total Liabilities and Equity Revenue growth rate Percentage of Revenue Cost of services SG&A expense Depreciation Ratios Days sales in accounts receivable Inventory turnover Other long-term assets % of revenue Days days cost of services (COS) in accounts payable Accrued expense as a % of COS Other long-term liabilities as a % of COS Dividend payout Net capital spending as a % of revenue Tax rate Interest rate 5,000.0 $ 24,300.0 5,200.0 34,500.0 205,000.0 2,000.0 241,500.0 21,750.0 3,150.0 24,900.0 65,000.0 3,500.0 93,400.0 30,000.0 118,100.0 241,500.0 $ n/a 9,939.4 $ 24,800.0 5,500.0 40,239.4 207,300.0 2,500.0 250,039.4 23,570.0 3,525.0 27.095.0 60,000.0 4,000.0 91,095.0 30,000.0 128,944.4 250,039.4 $ 7.2% 14,996.3 $ 26,245.0 5,900.0 47,141.3 209,500.0 2,500.0 259,141.3 25,600.0 3,765.0 29,365.0 55,000.0 4,300.0 88,665.0 30,000.0 140,476.3 259,141.3 $ 6.0% 17,819.1 $ 26,900.0 6,460.0 51,179.1 213,900.0 3,000.0 268,079.1 26,505.0 4,020.0 30,525.0 50,000.0 4,700.0 85,225.0 30,000.0 152,854.1 268,079.1 S 5.6% 23,326.4 $ 29,200.0 6,640.0 59,166.4 216,115.0 3,250.0 278,531.4 27,900.0 4,300.0 32,200.0 45,000.0 5,150.0 82,350.0 30,000.0 166,181.4 278,531.4 5.0% $ 5.0% 5.0% 5.0% 5.0% 5.0% 62.2% 10.2% 8.1% 61.9% 10.0% 8.4% 62.6% 10.1% 7.7% 63.0% 9.9% 7.5% 62.6% 9.8% 7.7% 62.5% 9.5% 7.5% 62.5% 9.5% 7.5% 62.5% 9.5% 7.5% 62.5% 9.5% 7.5% 62.5% 9.5% % 7.5% 35.0 29.9 0.8% 51.1 2.0% 1.4% 70.0% 10.0% 25.0% 7.5% 33.3 30.2 0.9% 51.8 2.1% 1.5% 70.0% 9.2% 25.0% 7.5% 33.3 30.1 0.9% 52.5 2.1% 1.5% 70.0% 8.5% 25.0% 7.5% 32.3 29.2 1.0% 51.2 2.1% 1.6% 70.0% 9.0% 25.0% 7.5% 33.4 29.7 1.0% 51.6 2.2% 1.6% 70.0% 8.4% 35.0 30.0 1.0% 50.0 2.0% 1.5% % 50.0% 8.0% 25.0% 7.5% 35.0 30.0 1.0% 50.0 2.0% 1.5% 50.0% 8.0% 25.0% 7.5% 35.0 30.0 1.0% 50.0 2.0% 1.5% 50.0% B.0% 25.0% 7.5% 35.0 30.0 1.0% 50.0 2.0% 1.5% 50.0% B.0% 25.0% 7.5% 35.0 30.0 1.0% 50.0 2.0% 1.5% 50.0% 8.0% 25.0% 7.5% 25.0% 7.5% Forecast 2020 Forecast 2021 Forecast 2022 Forecast 2023 Forecast 2024 WASTE CONTROL CONCEPTS CORPORATION ($000) Actual 2019 Revenue Projections Current revenue $ 315,000.0 Expansion revenue Total revenue $ 315,000.0 Revenue growth rate assumption 5.0% 5.0% 5.0% 5.0% 5.0% Forecast 2020 Forecast 2021 Forecast 2022 Forecast 2023 Forecast 2024 WASTE CONTROL CONCEPTS CORPORATION ($000) Actual 2019 PP&E Scehdule Beginning balance n/a Maintenance capital expenditures n/a Expansion capital expenditures n/a Depreciation n/a Ending Balance $ 216,115.0 Retained Earnings Schedule Beginning balance n/a Net income n/a Dividends n/a Ending balance $ 166,181.4 In comparison to the three industry competitors is WCC more leveraged or less leveraged after the transaction based on 2020 results? 2020 EBIT 2020 Interest Coverage Is it higher or lower than competitors? 2020 Debt 2020 EBITDA Debt/EBITDA Is it higher or lower than competitors? 2020 Debt 2020 Equity D/E Is it higher or lower than competitors? WASTE CONTROL CONCEPTS CORPORATION ($000) Actual 2015 Actual 2016 Actual 2017 Actual 2018 Actual 2019 Forecast 2020 Forecast 2021 Forecast 2022 Forecast 2022 Forecast 2024 $ 250,000.0 $ 268,000.0 $ 284,000.0 % 155,500.0 166,000.0 177,835.0 94,500.0 102,000.0 106,165.0 25,500.0 26,700.0 28,700.0 20,325.0 22,415.0 21,900.0 45,825.0 49,115.0 50,600.0 48,675.0 52,885.0 55,565.0 4,875.0 4,687.5 4,312.5 43,800.0 48,197.5 51,252.5 10,950.0 12,049.4 12,813.1 $ 32,850.0 $ 36,148.1 $ 38,439.4 $ 300,000.0 $ 315,000.0 188,900.0 197,250.0 111,100.0 117,750,0 29,600.0 30,760.0 22,550.0 24,195.0 52,150.0 54,955.0 58,950.0 62,795.0 3,937.5 3,562.5 55,012.5 59,232.5 13,753.1 14,808.1 41,259.4 $ 44,424.4 $ 10,000.0 $ 10,000,0 $ 10,000,0 $ 10,000,0 $ 10,000.0 Income Statement Revenue Cast of services Grass profit SG&A expense Depreciation expense Total expenses EBIT Interest Expense Pretax Profit Tax Net Income Balance Sheet Cash Accounts receivable Inventory Total current assets Net fixed assets Other long-term assets Total Assets Accounts Payable Accrued Expenses Total Current Liabilities Debt - long-term Other long-term liabilities Total Liabilities Common stock Retained earnings Total Liabilities and Equity Revenue growth rate Percentage of Revenue Cost of services SG&A expense Depreciation Ratios Days sales in accounts receivable Inventory turnover Other long-term assets % of revenue Days days cost of services (COS) in accounts payable Accrued expense as a % of COS Other long-term liabilities as a % of COS Dividend payout Net capital spending as a % of revenue Tax rate Interest rate 5,000.0 $ 24,300.0 5,200.0 34,500.0 205,000.0 2,000.0 241,500.0 21,750.0 3,150.0 24,900.0 65,000.0 3,500.0 93,400.0 30,000.0 118,100.0 241,500.0 $ n/a 9,939.4 $ 24,800.0 5,500.0 40,239.4 207,300.0 2,500.0 250,039.4 23,570.0 3,525.0 27.095.0 60,000.0 4,000.0 91,095.0 30,000.0 128,944.4 250,039.4 $ 7.2% 14,996.3 $ 26,245.0 5,900.0 47,141.3 209,500.0 2,500.0 259,141.3 25,600.0 3,765.0 29,365.0 55,000.0 4,300.0 88,665.0 30,000.0 140,476.3 259,141.3 $ 6.0% 17,819.1 $ 26,900.0 6,460.0 51,179.1 213,900.0 3,000.0 268,079.1 26,505.0 4,020.0 30,525.0 50,000.0 4,700.0 85,225.0 30,000.0 152,854.1 268,079.1 S 5.6% 23,326.4 $ 29,200.0 6,640.0 59,166.4 216,115.0 3,250.0 278,531.4 27,900.0 4,300.0 32,200.0 45,000.0 5,150.0 82,350.0 30,000.0 166,181.4 278,531.4 5.0% $ 5.0% 5.0% 5.0% 5.0% 5.0% 62.2% 10.2% 8.1% 61.9% 10.0% 8.4% 62.6% 10.1% 7.7% 63.0% 9.9% 7.5% 62.6% 9.8% 7.7% 62.5% 9.5% 7.5% 62.5% 9.5% 7.5% 62.5% 9.5% 7.5% 62.5% 9.5% 7.5% 62.5% 9.5% % 7.5% 35.0 29.9 0.8% 51.1 2.0% 1.4% 70.0% 10.0% 25.0% 7.5% 33.3 30.2 0.9% 51.8 2.1% 1.5% 70.0% 9.2% 25.0% 7.5% 33.3 30.1 0.9% 52.5 2.1% 1.5% 70.0% 8.5% 25.0% 7.5% 32.3 29.2 1.0% 51.2 2.1% 1.6% 70.0% 9.0% 25.0% 7.5% 33.4 29.7 1.0% 51.6 2.2% 1.6% 70.0% 8.4% 35.0 30.0 1.0% 50.0 2.0% 1.5% % 50.0% 8.0% 25.0% 7.5% 35.0 30.0 1.0% 50.0 2.0% 1.5% 50.0% 8.0% 25.0% 7.5% 35.0 30.0 1.0% 50.0 2.0% 1.5% 50.0% B.0% 25.0% 7.5% 35.0 30.0 1.0% 50.0 2.0% 1.5% 50.0% B.0% 25.0% 7.5% 35.0 30.0 1.0% 50.0 2.0% 1.5% 50.0% 8.0% 25.0% 7.5% 25.0% 7.5% Forecast 2020 Forecast 2021 Forecast 2022 Forecast 2023 Forecast 2024 WASTE CONTROL CONCEPTS CORPORATION ($000) Actual 2019 Revenue Projections Current revenue $ 315,000.0 Expansion revenue Total revenue $ 315,000.0 Revenue growth rate assumption 5.0% 5.0% 5.0% 5.0% 5.0% Forecast 2020 Forecast 2021 Forecast 2022 Forecast 2023 Forecast 2024 WASTE CONTROL CONCEPTS CORPORATION ($000) Actual 2019 PP&E Scehdule Beginning balance n/a Maintenance capital expenditures n/a Expansion capital expenditures n/a Depreciation n/a Ending Balance $ 216,115.0 Retained Earnings Schedule Beginning balance n/a Net income n/a Dividends n/a Ending balance $ 166,181.4 In comparison to the three industry competitors is WCC more leveraged or less leveraged after the transaction based on 2020 results? 2020 EBIT 2020 Interest Coverage Is it higher or lower than competitors? 2020 Debt 2020 EBITDA Debt/EBITDA Is it higher or lower than competitors? 2020 Debt 2020 Equity D/E Is it higher or lower than competitors

Question

Income Statement

The revenue from the current businesses will increase at an annual rate of 5.0% since 2020
The acquisition will add $75.0 million of incremental revenue in 2020 and the incremental revenue will increase at an annual rate of 5.0% thereafter
Cost of services will be 62.5% of revenue
SG&A expense will be 9.5% of revenue
Depreciation expense will be 7.5% of revenue
Interest expense will be based on the average long-term debt outstanding in the

current and previous years
Interest rate is assumed to constant at 7.5%

Tax rate is assumed to be constant at 25.0%

Balance Sheet

Constant operating cash level of $10.0 million
Days sales in accounts receivable is 35 days
Inventory turnover (=cost of services/inventory) is 30 (inventory consists of recyclable materials resold)
Net capital spending is at 8.0% of revenue
Other long-term assets is at 1.0% of revenue
Days days cost of services (COS) in accounts payable is 50 days
Accrued expense is at 2.0% of COS
Other long-term liabilities is at 1.5% of COS
Dividend payout ratio is assumed to be 50% in the following five years
WCC has 10 million shares outstanding

You are a financial analyst in the financial planning and analysis department of WCC. You have been assigned the following:

Complete a five-year forecast based on the above assumptions.
Based on 2020, explain if WCC is, more or less leveraged than the competitors. Please

use three measures: (1) interest coverage ratio, (2) Debt/EBITDA, and (3) Debt/Equity

image text in transcribed

WASTE CONTROL CONCEPTS CORPORATION ($000) Actual 2015 Actual 2016 Actual 2017 Actual 2018 Actual 2019 Forecast 2020 Forecast 2021 Forecast 2022 Forecast 2022 Forecast 2024 $ 250,000.0 $ 268,000.0 $ 284,000.0 % 155,500.0 166,000.0 177,835.0 94,500.0 102,000.0 106,165.0 25,500.0 26,700.0 28,700.0 20,325.0 22,415.0 21,900.0 45,825.0 49,115.0 50,600.0 48,675.0 52,885.0 55,565.0 4,875.0 4,687.5 4,312.5 43,800.0 48,197.5 51,252.5 10,950.0 12,049.4 12,813.1 $ 32,850.0 $ 36,148.1 $ 38,439.4 $ 300,000.0 $ 315,000.0 188,900.0 197,250.0 111,100.0 117,750,0 29,600.0 30,760.0 22,550.0 24,195.0 52,150.0 54,955.0 58,950.0 62,795.0 3,937.5 3,562.5 55,012.5 59,232.5 13,753.1 14,808.1 41,259.4 $ 44,424.4 $ 10,000.0 $ 10,000,0 $ 10,000,0 $ 10,000,0 $ 10,000.0 Income Statement Revenue Cast of services Grass profit SG&A expense Depreciation expense Total expenses EBIT Interest Expense Pretax Profit Tax Net Income Balance Sheet Cash Accounts receivable Inventory Total current assets Net fixed assets Other long-term assets Total Assets Accounts Payable Accrued Expenses Total Current Liabilities Debt - long-term Other long-term liabilities Total Liabilities Common stock Retained earnings Total Liabilities and Equity Revenue growth rate Percentage of Revenue Cost of services SG&A expense Depreciation Ratios Days sales in accounts receivable Inventory turnover Other long-term assets % of revenue Days days cost of services (COS) in accounts payable Accrued expense as a % of COS Other long-term liabilities as a % of COS Dividend payout Net capital spending as a % of revenue Tax rate Interest rate 5,000.0 $ 24,300.0 5,200.0 34,500.0 205,000.0 2,000.0 241,500.0 21,750.0 3,150.0 24,900.0 65,000.0 3,500.0 93,400.0 30,000.0 118,100.0 241,500.0 $ n/a 9,939.4 $ 24,800.0 5,500.0 40,239.4 207,300.0 2,500.0 250,039.4 23,570.0 3,525.0 27.095.0 60,000.0 4,000.0 91,095.0 30,000.0 128,944.4 250,039.4 $ 7.2% 14,996.3 $ 26,245.0 5,900.0 47,141.3 209,500.0 2,500.0 259,141.3 25,600.0 3,765.0 29,365.0 55,000.0 4,300.0 88,665.0 30,000.0 140,476.3 259,141.3 $ 6.0% 17,819.1 $ 26,900.0 6,460.0 51,179.1 213,900.0 3,000.0 268,079.1 26,505.0 4,020.0 30,525.0 50,000.0 4,700.0 85,225.0 30,000.0 152,854.1 268,079.1 S 5.6% 23,326.4 $ 29,200.0 6,640.0 59,166.4 216,115.0 3,250.0 278,531.4 27,900.0 4,300.0 32,200.0 45,000.0 5,150.0 82,350.0 30,000.0 166,181.4 278,531.4 5.0% $ 5.0% 5.0% 5.0% 5.0% 5.0% 62.2% 10.2% 8.1% 61.9% 10.0% 8.4% 62.6% 10.1% 7.7% 63.0% 9.9% 7.5% 62.6% 9.8% 7.7% 62.5% 9.5% 7.5% 62.5% 9.5% 7.5% 62.5% 9.5% 7.5% 62.5% 9.5% 7.5% 62.5% 9.5% % 7.5% 35.0 29.9 0.8% 51.1 2.0% 1.4% 70.0% 10.0% 25.0% 7.5% 33.3 30.2 0.9% 51.8 2.1% 1.5% 70.0% 9.2% 25.0% 7.5% 33.3 30.1 0.9% 52.5 2.1% 1.5% 70.0% 8.5% 25.0% 7.5% 32.3 29.2 1.0% 51.2 2.1% 1.6% 70.0% 9.0% 25.0% 7.5% 33.4 29.7 1.0% 51.6 2.2% 1.6% 70.0% 8.4% 35.0 30.0 1.0% 50.0 2.0% 1.5% % 50.0% 8.0% 25.0% 7.5% 35.0 30.0 1.0% 50.0 2.0% 1.5% 50.0% 8.0% 25.0% 7.5% 35.0 30.0 1.0% 50.0 2.0% 1.5% 50.0% B.0% 25.0% 7.5% 35.0 30.0 1.0% 50.0 2.0% 1.5% 50.0% B.0% 25.0% 7.5% 35.0 30.0 1.0% 50.0 2.0% 1.5% 50.0% 8.0% 25.0% 7.5% 25.0% 7.5% Forecast 2020 Forecast 2021 Forecast 2022 Forecast 2023 Forecast 2024 WASTE CONTROL CONCEPTS CORPORATION ($000) Actual 2019 Revenue Projections Current revenue $ 315,000.0 Expansion revenue Total revenue $ 315,000.0 Revenue growth rate assumption 5.0% 5.0% 5.0% 5.0% 5.0% Forecast 2020 Forecast 2021 Forecast 2022 Forecast 2023 Forecast 2024 WASTE CONTROL CONCEPTS CORPORATION ($000) Actual 2019 PP&E Scehdule Beginning balance n/a Maintenance capital expenditures n/a Expansion capital expenditures n/a Depreciation n/a Ending Balance $ 216,115.0 Retained Earnings Schedule Beginning balance n/a Net income n/a Dividends n/a Ending balance $ 166,181.4 In comparison to the three industry competitors is WCC more leveraged or less leveraged after the transaction based on 2020 results? 2020 EBIT 2020 Interest Coverage Is it higher or lower than competitors? 2020 Debt 2020 EBITDA Debt/EBITDA Is it higher or lower than competitors? 2020 Debt 2020 Equity D/E Is it higher or lower than competitors? WASTE CONTROL CONCEPTS CORPORATION ($000) Actual 2015 Actual 2016 Actual 2017 Actual 2018 Actual 2019 Forecast 2020 Forecast 2021 Forecast 2022 Forecast 2022 Forecast 2024 $ 250,000.0 $ 268,000.0 $ 284,000.0 % 155,500.0 166,000.0 177,835.0 94,500.0 102,000.0 106,165.0 25,500.0 26,700.0 28,700.0 20,325.0 22,415.0 21,900.0 45,825.0 49,115.0 50,600.0 48,675.0 52,885.0 55,565.0 4,875.0 4,687.5 4,312.5 43,800.0 48,197.5 51,252.5 10,950.0 12,049.4 12,813.1 $ 32,850.0 $ 36,148.1 $ 38,439.4 $ 300,000.0 $ 315,000.0 188,900.0 197,250.0 111,100.0 117,750,0 29,600.0 30,760.0 22,550.0 24,195.0 52,150.0 54,955.0 58,950.0 62,795.0 3,937.5 3,562.5 55,012.5 59,232.5 13,753.1 14,808.1 41,259.4 $ 44,424.4 $ 10,000.0 $ 10,000,0 $ 10,000,0 $ 10,000,0 $ 10,000.0 Income Statement Revenue Cast of services Grass profit SG&A expense Depreciation expense Total expenses EBIT Interest Expense Pretax Profit Tax Net Income Balance Sheet Cash Accounts receivable Inventory Total current assets Net fixed assets Other long-term assets Total Assets Accounts Payable Accrued Expenses Total Current Liabilities Debt - long-term Other long-term liabilities Total Liabilities Common stock Retained earnings Total Liabilities and Equity Revenue growth rate Percentage of Revenue Cost of services SG&A expense Depreciation Ratios Days sales in accounts receivable Inventory turnover Other long-term assets % of revenue Days days cost of services (COS) in accounts payable Accrued expense as a % of COS Other long-term liabilities as a % of COS Dividend payout Net capital spending as a % of revenue Tax rate Interest rate 5,000.0 $ 24,300.0 5,200.0 34,500.0 205,000.0 2,000.0 241,500.0 21,750.0 3,150.0 24,900.0 65,000.0 3,500.0 93,400.0 30,000.0 118,100.0 241,500.0 $ n/a 9,939.4 $ 24,800.0 5,500.0 40,239.4 207,300.0 2,500.0 250,039.4 23,570.0 3,525.0 27.095.0 60,000.0 4,000.0 91,095.0 30,000.0 128,944.4 250,039.4 $ 7.2% 14,996.3 $ 26,245.0 5,900.0 47,141.3 209,500.0 2,500.0 259,141.3 25,600.0 3,765.0 29,365.0 55,000.0 4,300.0 88,665.0 30,000.0 140,476.3 259,141.3 $ 6.0% 17,819.1 $ 26,900.0 6,460.0 51,179.1 213,900.0 3,000.0 268,079.1 26,505.0 4,020.0 30,525.0 50,000.0 4,700.0 85,225.0 30,000.0 152,854.1 268,079.1 S 5.6% 23,326.4 $ 29,200.0 6,640.0 59,166.4 216,115.0 3,250.0 278,531.4 27,900.0 4,300.0 32,200.0 45,000.0 5,150.0 82,350.0 30,000.0 166,181.4 278,531.4 5.0% $ 5.0% 5.0% 5.0% 5.0% 5.0% 62.2% 10.2% 8.1% 61.9% 10.0% 8.4% 62.6% 10.1% 7.7% 63.0% 9.9% 7.5% 62.6% 9.8% 7.7% 62.5% 9.5% 7.5% 62.5% 9.5% 7.5% 62.5% 9.5% 7.5% 62.5% 9.5% 7.5% 62.5% 9.5% % 7.5% 35.0 29.9 0.8% 51.1 2.0% 1.4% 70.0% 10.0% 25.0% 7.5% 33.3 30.2 0.9% 51.8 2.1% 1.5% 70.0% 9.2% 25.0% 7.5% 33.3 30.1 0.9% 52.5 2.1% 1.5% 70.0% 8.5% 25.0% 7.5% 32.3 29.2 1.0% 51.2 2.1% 1.6% 70.0% 9.0% 25.0% 7.5% 33.4 29.7 1.0% 51.6 2.2% 1.6% 70.0% 8.4% 35.0 30.0 1.0% 50.0 2.0% 1.5% % 50.0% 8.0% 25.0% 7.5% 35.0 30.0 1.0% 50.0 2.0% 1.5% 50.0% 8.0% 25.0% 7.5% 35.0 30.0 1.0% 50.0 2.0% 1.5% 50.0% B.0% 25.0% 7.5% 35.0 30.0 1.0% 50.0 2.0% 1.5% 50.0% B.0% 25.0% 7.5% 35.0 30.0 1.0% 50.0 2.0% 1.5% 50.0% 8.0% 25.0% 7.5% 25.0% 7.5% Forecast 2020 Forecast 2021 Forecast 2022 Forecast 2023 Forecast 2024 WASTE CONTROL CONCEPTS CORPORATION ($000) Actual 2019 Revenue Projections Current revenue $ 315,000.0 Expansion revenue Total revenue $ 315,000.0 Revenue growth rate assumption 5.0% 5.0% 5.0% 5.0% 5.0% Forecast 2020 Forecast 2021 Forecast 2022 Forecast 2023 Forecast 2024 WASTE CONTROL CONCEPTS CORPORATION ($000) Actual 2019 PP&E Scehdule Beginning balance n/a Maintenance capital expenditures n/a Expansion capital expenditures n/a Depreciation n/a Ending Balance $ 216,115.0 Retained Earnings Schedule Beginning balance n/a Net income n/a Dividends n/a Ending balance $ 166,181.4 In comparison to the three industry competitors is WCC more leveraged or less leveraged after the transaction based on 2020 results? 2020 EBIT 2020 Interest Coverage Is it higher or lower than competitors? 2020 Debt 2020 EBITDA Debt/EBITDA Is it higher or lower than competitors? 2020 Debt 2020 Equity D/E Is it higher or lower than competitors