KLC OpCo Summary Historical Pro Forma and Projected Financials
Fiscal Year Ended December 31,
($ in millions) 2004PF
OPERATIONAL DATA
Revenue $1,442.2 Growth
Gross Profit $233.3
Adjusted EBITDA $143.3 Margin 9.9%
Adjusted EBITDAR $352.8 Margin 24,5%
Operating Income Total Interest Expense Net Income’
BALANCE SHEET DATA Cash
Accounts Receivable PP&E, Net
Accounts Payable
SELECTED CASH FLOW DATA
Net Income (Loss)'
+ Depreciation
+ Amortization of Intangibles
+ Amortization of Deferred Financing Fees + Change in Working Capital?
+ Change in Accrued LTIP®
+ Change in Accrued SAR“
+ Change in Other Assets
= Operating Cash Flow - Capital Expenditures
- Capitalized Lease Payments = Cash for Debt Service
CAPITALIZATION Total Debt Shareholders’ Equity® Total Capitalization
2005PF
$1,477.7 2.5%
$244.4
$149.9 10.1%
$367.4 24.9%
$27.1 23.5 $1.6
$118.8 55.6 286.6 13.0
$1.6 47.9 11.6 0.8 0.0 0.0 9.9 0.0
$71.9 (83.1) (0.5) $(11.7)
$276.4 254.1 $530.5
2006P
$1,557.8 5.4%
$290.7
$161.7 10.4%
$371.4 23.8%
$78.9 23.6 $31.1
$154.2 58.6 301.9 13.7
$34.1 54.6 12.8 0.8 2.8 2.6 24 (0.6)
$106.0 (69.9) (0.8)
$35.4
$275.6 283.1 $558.7
2007P
$1,656.5 6.3%
$320.6
$179.9 10.9%
$391.4 23.6%
$101.6 23.5 $46.0
$215.8 62.4 305.9 14.6
$46.0 56.2 10.0 0.8 3.4 4.0 3.1 (0.8)
$122.7 (60.2) (0.9)
$61.6
$274.7 330.1 $604.9
2008P
$1,769.6 6.8%
$354.0
$204.8 11.6%
$419.6 23.7%
$117.8 23.4 $56.9
$288.5 66.6 309.4 15.6
$56.9 61.5 8.8 0.8 3.9 45 3.2 (0.9)
$138.7 (65.0) (1.0)
$72.7
$273.7 390.7 $664.4
2009P
$1,919.7 8.5%
$396.2
$237.5 12.4%
$459.7 23.9%
$146.9 23.3 $77.4
$373.7 72.3 315.0 16.9
$77.4 67.3 3.6 0.8 5.2 24 3.7 (1.2)
$159.3 (72.8) (1.3)
$85.2
$272.5 474.8 $747.3
2010P
$2,095.8 9.2%
$448.2
$279.0 13.3%
$510.8 24.4%
$179.5 23.1 $98.3
$484.8 78.9 315.6 18.4
$98.3 74.2 3.5 0.8 6.1 14 47 (1.4)
$187.4 (74.8) (1.5)
$111.1
$271.0 583.6 $854.6
2011P
$2,290.8 9.3%
$501.3
$320.1 14.0%
$568.6 24.8%
$212.4 22.9 $117.9
$621.2 86.2 311.1 20.1
$117.9 80.9 3.5 0.8 6.8 0.6 5.6 (1.5)
$214.5 (76.4) (1.7)
$137.9
$269.3 721.1 $990.4
Excludes equity in earnings of unconsolidated subsidiary (KLC PropCo).
* KLC has not divided change in working capital between KLC OpCo and KLC PropCo. Traditionally KLC OpCo operates with positive working capital.
° For additional detail, see the discussion below under the heading ‘“- Long Term Incentive Plan.”
* Non-cash expenses related to KSI’s Stock Appreciation Rights Plan attributed to KLC’s employees and payable by KSI in cash upon settlement.
° Represents book value.
Revenue
Management projects revenue to increase at a 8.0% CAGR, from $1.6 billion in 2006 to $2.3 billion in 2011. Most of the projected growth stems from KLC OpCo’s ECE segment which currently accounts for approximately 96.0% of KLC OpCo’s pro forma revenue. The following table shows projected revenue by
business segment:
HOUSE_OVERSIGHT_024526