Sunday Educational_IS_WC

xlsx

School

York University *

*We aren’t endorsed by this school

Course

3500

Subject

Finance

Date

Apr 3, 2024

Type

xlsx

Pages

8

Uploaded by LieutenantWaterKookabura41

Report
Sonos Operating Model All $ in '000s and USD, unless otherwise stated Fiscal Period 2019 2020 2021 2022 2023 2024 2025 ending 9/28/19 10/3/20 10/2/21 10/1/22 9/30/23 9/29/24 9/28/25 weeks 53.0 52.0 52.0 52.0 52.1 52.0 x Control Case Toggle: Bull 3 Circuit Breaker No Company Name: Sonos Ticker: NASDAQ:SONO Last Price: 32.26 Investment Horiz 2 yrs Balance Sheet No x Assumptions x Income Statement Revenue Growth 5.2% 29.4% 15.0% 15.0% 15.0% 15.0% Base 11.0% 11.0% 11.0% 11.0% 11% CAGR Bear 8.0% 8.0% 8.0% 8.0% 8% CAGR Bull 15.0% 15.0% 15.0% 15.0% 15% CAGR Gross Margin 41.8% 43.1% 47.2% 47.0% 47.0% 47.0% 47.0% Base 46.0% 46.0% 46.0% 46.0% 46.0% Bear 44.0% 44.0% 44.0% 44.0% 44.0% Bull 47.0% 47.0% 47.0% 47.0% 47.0% R&D 13.6% 16.2% 13.4% 13.5% 13.5% 13.5% 13.5% 13.5% S&M 19.6% 19.9% 15.9% 18.0% 18.0% 18.0% 18.0% 18.0% G&A 8.2% 9.1% 8.9% 9.0% 9.0% 9.0% 9.0% 9.0%
SBC 3.7% 4.3% 3.6% 4.0% 4.0% 4.0% 4.0% 4.0% Tax rate - - - - x Working Capital A/R Days ### ### ### ### ### ### ### flat line Inventory Days ### ### ### ### ### ### ### flat line Prepaid assets as % of OpEx 3.4% 2.9% 4.8% 4.8% 4.8% 4.8% 4.8% flat line A/P Days ### ### ### ### ### ### ### flat line Accrued expenses as % of OpEx 13.4% 7.5% 16.5% 16.5% 16.5% 16.5% 16.5% flat line Accrued compensation as % of S&M 16.6% 16.9% 28.6% 28.6% 28.6% 28.6% 28.6% flat line x Depreciation Schedule Beginning PP&E 71,341 86,148 96,365 100,281 ( + ) CapEx / Acquisitions 59,228 68,112 78,329 90,078 ( - ) Depreciation (44,421) (57,895) (74,412) (90,078) Ending PP&E 71,341 86,148 96,365 100,281 100,281 CapEx as % of Revenue 1.8% 2.5% 2.7% 3.0% 3.0% 3.0% 3.0% 3.0% Dep. as % of CapEx 156.8% 110.3% 74.4% 75.0% 85.0% 95.0% 100.0% 5.0%, +10%
x Income Statement Revenue ### ### ### ### ### ### ### Cost of revenue (733,480) (754,372) (906,750) ### ### ### ### Gross Profit 527,343 571,956 809,994 927,900 ### ### ### R&D (171,174) (214,672) (230,078) (266,525) (306,503) (352,479) (405,350) S&M (247,599) (263,539) (272,124) (355,366) (408,671) (469,972) (540,467) G&A (102,871) (120,978) (152,828) (177,683) (204,335) (234,986) (270,234) EBIT 5,699 (27,233) 154,964 128,327 147,576 169,712 195,169 Interest income 4,349 1,998 146 #DIV/0! #DIV/0! #DIV/0! cuit breaker Interest expense (2,499) (1,487) (592) Other income, net (8,625) 6,639 2,407 EBT (1,076) (20,083) 156,925 128,327 #DIV/0! #DIV/0! #DIV/0! Income Tax Expense/(Benefit) (3,690) (32) 1,670 #DIV/0! #DIV/0! #DIV/0! Net Income (4,766) (20,115) 158,595 128,327 #DIV/0! #DIV/0! #DIV/0! Per Share Items Basic EPS ($0.05) ($0.18) $1.30 $1.05 #DIV/0! #DIV/0! #DIV/0! Weighted Avg. Basic Shares Out. 103,783 109,807 122,245 122,245 122,245 122,245 122,245 flat line Diluted EPS ($0.05) ($0.18) $1.13 $0.91 #DIV/0! #DIV/0! #DIV/0! Weighted Avg. Diluted Shares Out. 103,783 109,807 140,309 140,309 140,309 140,309 140,309 Supplemental Items EBITDA 42,114 9,193 188,846 ### ### ### ### Margin 3.3% 0.7% 11.0% 6.5% 6.5% 6.5% 6.5%
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help
x Cash Flow Statement Net Income D&A 36,415 36,426 33,882 SBC 46,575 57,610 62,127 Change in: AR Inventory Prepaid assets AP Accrued expenses Accrued compensation Deferred revenue Total Cash from Ops. - - - - CapEx (23,222) (33,035) (45,531) Total Cash from Investing - - - - Cash from Financing - - - Net Change in Cash - - - - Change in WC - - - -
x Balance Sheet ASSETS Cash & equiv. 338,641 407,100 640,101 Restricted cash 179 191 - AR 102,743 54,935 100,779 115,896 133,280 153,272 176,263 Inventory 219,784 180,830 185,130 213,633 245,678 282,530 324,909 Prepaid assets and other 17,762 17,321 31,504 38,456 44,224 50,858 58,487 Total CA 679,109 660,377 957,514 367,985 423,183 486,660 559,659 PPE, net 78,139 60,784 71,341 86,148 96,365 100,281 100,281 Operating lease ROU - 42,342 33,841 Goodwill - 15,545 15,545 Intangible assets, net 1,018 26,394 24,450 DTA 1,154 1,800 10,028 Other 2,185 8,809 26,085 Total Assets 761,605 816,051 ### 454,133 519,547 586,941 659,940 LIABILITIES AP 251,941 250,328 214,996 248,097 285,312 328,109 377,325 Accrued expenses 69,856 45,049 108,029 131,867 151,648 174,395 200,554 Accrued compensation 41,142 44,517 77,695 101,462 116,681 134,183 154,311 STD 8,333 6,667 - Deferred revenue, current 13,654 15,304 35,866 41,246 47,433 54,548 62,730 w/ revenue Other 17,548 31,150 39,544 Total CL 402,474 393,015 476,130 522,672 601,073 691,234 794,919 Operating lease liabilities - 50,360 33,960 LTD 24,840 18,251 - Deferred revenue 42,795 47,085 53,632 61,677 61,677 61,677 61,677 w/ revenue DTL - 2,434 2,394 Other 10,568 7,067 3,646 Total Liabilities 480,677 518,212 569,762 584,349 662,750 752,911 856,596 Common stock 110 114 129 Treasury stock (13,498) (20,886) (50,276) APIC 502,757 548,993 690,462
Accumulated deficit (208,377) (228,492) (69,897) Accumulated OCL (64) (1,890) (1,376) Total Equity 280,928 297,839 569,042 - - - - Total Liabilities And Equity 761,605 816,051 ### 584,349 662,750 752,911 856,596 Check - - - (130,216) (143,203) (165,970) (196,656) x x
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help
Sonos DCF All $ in '000s and USD, unless otherwise stated Fiscal Period 2019 2020 2021 2022 2023 ending 9/28/19 10/3/20 10/2/21 10/1/22 9/30/23 weeks 53.0 52.0 52.0 52.0 x UFCF Build Discount period 1.0 2.0 Mid-year Convention 0.50 1.50 EBIT ### 147,576 NOPAT ### ### Add: D&A Less: Capital Expenditures Less: Change in NWC Unlevered Free Cash Flow ### 147,576 PV Unlevered Free Cash Flow ### ### x WACC Risk-free rate 2.0% Market cap 100.0% MRP 4.9% Debt - Beta 1.9 D+E ### Cost of Equity 11.4% Cost of Debt - Tax rate - After-tax Cost of Debt - WACC 11.4% x Enterprise Value ($ in millions) 2025 EBITDA $195,169 NTM EBITDA Multiple 13.0x Terminal Value ### Implied Perpetuity Growth Rate 3.5% PV Terminal Value ### % of Enterprise Value 100.0% Enterprise Value ### Less: Debt Less: Minority Interest Add: Cash $640,101 Equity Value ### Fully Diluted Shares Outstanding ### Implied Share Price $22.65 x
2024 2025 9/29/24 52.1 3.0 4.0 2.50 3.50 ### ### ### ### ### ### ### ###