Hansson Private Case Data Analysis Student

xlsx

School

Temple University *

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Course

3901

Subject

Finance

Date

Apr 3, 2024

Type

xlsx

Pages

16

Uploaded by joeyleone

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HANSSON PRIVATE LABEL ### Operating Results: 2003 2004 2005 2006 2007 Revenue $503.4 $543.7 $587.2 $636.1 $680.7 Less: Cost of Goods Sold 405.2 432.3 496.2 513.4 558.2 Gross Profit 98.2 111.4 91.0 122.7 122.5 Less: Selling, General & Administrative 37.8 44.6 45.8 51.5 49.0 EBITDA 60.4 66.8 45.2 71.2 73.5 Less: Depreciation 6.8 6.2 6.0 5.9 6.1 EBIT 53.6 60.6 39.2 65.3 67.4 Less: Interest Expense 5.5 5.8 5.9 5.3 3.3 EBT 48.1 54.8 33.3 60.0 64.1 Less: Taxes 19.2 22.0 13.3 24.0 25.6 Net Income $28.9 $32.8 $20.0 $36.0 $38.5 Margins: Revenue Growth NA 8.0% 8.0% 8.3% 7.0% Gross Margin 19.5% 20.5% 15.5% 19.3% 18.0% Selling, General & Administrative/Revenue 7.5% 8.2% 7.8% 8.1% 7.2% EBITDA Margin 12.0% 12.3% 7.7% 11.2% 10.8% EBIT Margin 10.6% 11.1% 6.7% 10.3% 9.9% Net Income Margin 5.7% 6.0% 3.4% 5.7% 5.7% Effective Tax Rate 39.9% 40.1% 39.9% 40.0% 39.9%
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HANSSON PRIVATE LABEL ### Assets: 2003 2004 2005 2006 2007 Cash & Cash Equivalents $4.3 $5.1 $4.8 $7.8 $5.0 Accounts Receivable 62.1 70.1 78.8 87.1 93.3 Inventory 57.7 58.0 61.2 61.9 67.3 Total Current Assets 124.1 133.2 144.8 156.8 165.6 Property, Plant & Equipment 201.4 202.9 203.1 202.3 204.4 Other Non-Current Assets 12.3 12.1 11.8 12.5 10.8 Total Assets $337.8 $348.2 $359.7 $371.6 $380.8 Liabilities & Owners' Equity: Accounts Payable & Accrued Liabilities $42.2 $45.0 $51.6 $53.4 $58.1 Long-Term Debt 91.6 82.8 73.8 65.8 54.8 Owners' Equity 204.0 220.4 234.3 252.4 267.9 Total Liabilities & Owners' Equity $337.8 $348.2 $359.7 $371.6 $380.8 Net Working Capital: Accounts Receivable 62.1 70.1 78.8 87.1 93.3 Plus: Inventory 57.7 58.0 61.2 61.9 67.3 Less: Accounts Payable & Accrued Expense 42.2 45.0 51.6 53.4 58.1 Net Working Capital 77.6 83.1 88.4 95.6 102.5 Net Working Capital/Revenue 15.4% 15.3% 15.1% 15.0% 15.1% Days Sales Outstanding 44.4x 46.4x 48.3x 49.3x 49.3x Days Sales Inventory 41.3x 38.4x 37.5x 35.0x 35.6x Days Payable Outstanding (1) 34.3x 34.0x 34.3x 34.0x 34.4x Cash-to-Cash 51.4x 50.8x 51.6x 50.3x 50.5x (1) Based on total operating expenses excluding depreciation.
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#REF!
HANSSON PRIVATE LABEL Cash From Operations: 2003 2004 2005 2006 2007 Net Income $28.9 $32.8 $20.0 $36.0 $38.5 Plus: Depreciation 6.8 6.2 6.0 5.9 6.1 Less: Increase in Accounts Receivable 3.1 8.0 8.7 8.3 6.2 Less: Increase in Inventory 0.5 0.3 3.2 0.7 5.4 Plus: Increase in Accounts Payable 0.3 2.8 6.6 1.8 4.7 Total Cash From Operations $32.4 $33.5 $20.7 $34.7 $37.7 Cash From Investing: Capital Expenditures $7.3 $7.7 $6.2 $5.1 $8.2 Plus: Increases in Other Non-Current Assets 0.5 (0.2) (0.3) 0.7 (1.7) Total Cash Used in Investing $7.8 $7.5 $5.9 $5.8 $6.5 Cash From Financing: Repayment of Debt $8.0 $8.8 $9.0 $8.0 $11.0 Plus: Dividend Payments 14.4 16.4 6.1 17.9 23.0 Cash Used in Financing $22.4 $25.2 $15.1 $25.9 $34.0 Total Cash Generated $2.2 $0.8 ($0.3) $3.0 ($2.8)
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###PEER COMPANIES Market NetEnterprise Equity Net Book Company: Value Debt Value Beta Revenue EBITDA EBIT Income Value Cathleen Sinclair 298.9 1,329.6 1,628.5 2.22 1,346.8 255.3 163.4 21.5 (1,112.8) General Health & Bea 319.3 63.1 382.4 1.95 446.1 61.9 51.9 23.8 204.2 Women's Care Compa 498.6 55.3 553.9 1.14 397.3 52.7 49.3 77.0 43.7 Skin Care Enterprises 1,204.2 371.9 1,576.1 1.35 1,247.6 155.8 125.4 65.3 316.2 Company: EBITDA EBIT Earnings Revenue EBITDA EBIT P/E P/B Cathleen Sinclair 19.0% 12.1% 1.6% 1.2x 6.4x 10.0x 13.9x NM General Health & Beauty 13.9% 11.6% 5.3% 0.9x 6.2x 7.4x 13.4x 1.6x Women's Care Company 13.3% 12.4% 19.4% 1.4x 10.5x 11.2x 6.5x 11.4x Skin Care Enterprises 12.5% 10.1% 5.2% 1.3x 10.1x 12.6x 18.4x 3.8x Average 14.6% 11.6% 7.9% 1.2x 8.3x 10.3x 13.1x 5.6x
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CAPITAL EXPENDITURES/WORKING CAPITAL INVESTMENT ### Percent Cost of Cost Components: Amount Est. Life Depr' Maintenance Maintenance Facility Expansion $10,000 20yrs. 500 5.0% 500 Manufacturing Equipment 20,000 10yrs. 2,000 5.0% 1,000 Packaging Equipment 15,000 10yrs. 1,500 5.0% 750 Working Capital (1) 12,817 0 0.0% 0 Total Investment 57,817 4,000 2,250 (1) The increase in working capital is not expected to ocurr upfront at the time of the initial investment. It is assumed to take place throughout the year, and should be considered as part of the 2009 cash flows. Note: working capital is defined as accounts receivable plus inventory less accounts payable and accrued expenses. At the end of the project, working capital will be returned in an amount equal to accounts receivable less accounts payable.
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COST OF CAPITAL INFORMATION ### Debt/ Equity/ LeveredUnlevered Company: EV EV Beta Beta Cathleen Sinclair 81.6% 18.4% 2.22 0.61 General Health & Beauty 16.5% 83.5% 1.95 1.74 Women's Care Company 10.0% 90.0% 1.14 1.07 Skin Care Enterprises 23.6% 76.4% 1.35 1.14 Average 32.9% 49.1% 1.67 1.14 Unlevered Levered Cost of Cost of Assumptions: MV MV Debt Debt Equity Beta Beta Equity After-Tax WACC 20-Year Treasury 3.75% Calculate WACC Equity Risk Premium 5.00% Tax Rate 40.0% Est. Hansson EBITDA Multiple 7.0x Est. Hansson Enterprise Value (EV) Existing Net Debt Plus: New Expansion Debt Total Estimated Debt Existing D/EV Estimated New D/EV Estimated Cost of Debt - PRE-TAX
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OPERATING ASSUMPTIONS FIN 4596 SPRING 2023 Revenue Projection: 2009 2010 2011 2012 2013 Total Capacity (000's) 80,000 80,000 80,000 80,000 80,000 Capacity Utilization 60.0% 65.0% 70.0% 75.0% 80.0% Unit Volume Selling Price Per Unit - Growing 2.0% 1.77 1.81 1.84 1.88 1.92 Revenue Production Costs: Raw Materials Per Unit Growing 1.0% 0.94 0.95 0.96 0.97 0.98 Manufacturing Overhead Growi 3.0% 3,600 3,708 3,819 3,934 4,052 Maintenance Expense Growing a 3.0% 2,250 2,318 2,387 2,459 2,532 Salaried Labor Cost: Managers 4 4 6 6 6 Average Annual Fully Loaded Cos 3.5% 160.0 165.6 171.4 177.4 183.6 Total Salaried Labor Cost 640.0 662.4 1,028.4 1,064.4 1,101.6 Hourly Labor Cost: Average Fully Loaded Hourly Cos 3.5% 20.00 20.70 21.42 22.17 22.95 Hours Per Year 2,000 2,000 2,000 2,000 2,000 Cost Per Hourly Employee 40,000 41,400 42,849 44,349 45,901 Number of Hourly Workers 450 0 0 0 0
Total Hourly Labor Cost (000's) 18,000.0 0.0 0.0 0.0 0.0 Total Labor Cost FC/per unit #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Selling, General & Administrative/Revenue 7.8% 7.8% 7.8% 7.8% 7.8% 0 SGA/per unit #DIV/0! SGA/per unit #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Working Capital Assumptions (1): Days Sales Outstanding 47.6x 47.6x 47.6x 47.6x 47.6x Days Sales Inventory 37.6x 37.6x 37.6x 37.6x 37.6x Days Payable Outstanding (Total costs) 34.2x 34.2x 34.2x 34.2x 34.2x (1) Based on historical averages. Hourly Labor Cost Per Unit #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Units Per Total Labor Hours 0.00 #DIV/0! #DIV/0! #DIV/0! #DIV/0! CAPITAL PROJECT ANALYSIS NPV Analysis Operating Results 2009 2010 2011 2012 2013
2014 2015 2016 2017 2018 80,000 80,000 80,000 80,000 80,000 85.0% 85.0% 85.0% 85.0% 85.0% 1.95 1.99 2.03 2.07 2.12 0.99 1.00 1.01 1.02 1.03 4,173 4,299 4,428 4,560 4,697 2,608 2,687 2,767 2,850 2,936 6 6 6 6 6 190.0 196.7 203.6 210.7 218.1 1,140.2 1,180.1 1,221.4 1,264.1 1,308.4 23.75 24.59 25.45 26.34 27.26 2,000 2,000 2,000 2,000 2,000 47,507 49,170 50,891 52,672 54,516 0 0 0 0 0
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0.0 0.0 0.0 0.0 0.0 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 7.8% 7.8% 7.8% 7.8% 7.8% #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 47.6x 47.6x 47.6x 47.6x 47.6x 37.6x 37.6x 37.6x 37.6x 37.6x 34.2x 34.2x 34.2x 34.2x 34.2x #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 2014 2015 2016 2017 2018