AIRTHREAD ACQUISITION

Rev inc 156

Revenue Projections: 2008 2009 2010 2011 2012

Service Revenue 4,194.3 4,781.5 5,379.2 5,917.2 6,331.4 Back hauling savings 0
Service Revenue Growth 14.0% 14.0% 12.5% 10.0% 7.0%

Equipment Revenue 314.8 358.8 403.7 444.1 475.2

Equipment Revenue/Service Revenue (1) 7.5% 7.5% 7.5% 7.5% 7.5%
Synergy 156.0 269.0 387.0 570.0 704.0
Toatal Revenue 4,665 5,409 6,170 6,931 7,511

Operating Expenses:
System Operating Expenses 838.9 956.3 1,075.8 1,183.4 1,266.3
System Operating Exp./Service Revenue 20.0% 20.0% 20.0% 20.0% 20.0%

Cost of Equipment Sold 755.5 861.2 968.9 1,065.8 1,140.4

Equipment COGS 240.0% 240.0% 240.0% 240.0% 240.0%

Selling, General & Administrative 1,866.0 2,163.8 2,468.0 2,772.5 3,004.2

SG&A/Total Revenue 40.0% 40.0% 40.0% 40.0% 40.0%
Savings 0.0 13.4 25.8 52.5 76.0
Total Expense 3,460 3,968 4,487 4,969 5,335

Depreciation & Amortization 705.2 804.0 867.4 922.4 952.9

Tax Rate 40.0% 40.0% 40.0% 40.0% 40.0%

Working Capital Assumptions (1):

Accounts Receivable 41.67x 41.67x 41.67x 41.67x 41.67x
Days Sales Equip. Rev. 154.36x 154.36x 154.36x 154.36x 154.36x
Prepaid Expenses 1.38% 1.38% 1.38% 1.38% 1.38%
Accounts Payable 35.54x 35.54x 35.54x 35.54x 35.54x
Deferred Serv. Revenue 14.01x 14.01x 14.01x 14.01x 14.01x
Accrued Liabilities 6.85x 6.85x 6.85x 6.85x 6.85x

Capital Expenditures (2):

Capital Expenditures 653.1 757.3 925.5 1,057.0 1,164.1
Cap-x/Total Revenue 14.0% 14.0% 15.0% 15.3% 15.5%

Income Statement
2008 2009 2010 2011 2012
Total revenue 4665 5409 6170 6931 7511
Toatal expenses 3460 3968 4487 4969 5335
EBDITA 1205 1442 1683 1962 2176
DEP 705 804 867 922 953
EBIT 500 638 816 1040 1223
Intrest 199 183 166 148 128
EBT 301 455 650 892 1095
TAX 120 182 260 357 438
Net Income 180 273 390 535 657

Unleavered free cash flow

EBIT(1-T) 300 383 489 624 734
Dep 705 804 867 922 953
OFC 1005 1186 1357 1546 1687
Delta NWC 66 33 33 37 28
CAPEX 653 757 925 1057 1164
FCFF 286 397 398 453 494

Balance Sheet
Assets
Working Capital
Cash & Cash Equivalents ca 204.5 81 62 37 59 0
Marketable Securities ca 16.4 16.4 16.4 16.4 16.4 16.4 Accounts Receivable
Accounts Receivable ca 435 540 626 714 802 869 Days Sales Equip. Rev.
Days Sales Equip. Rev. ca 101 135 154 173 190 204 Prepaid Expenses
Prepaid Expenses ca 42 48 55 62 69 74 Deffered tax
Deffered tax ca 19 19 19 19 19 19 Other CA
Other CA ca 16 16 16 16 16 16 TOTAL CA
Total CA 834 855 948 1,037 1,171 1,198
Accounts Payable
Deferred Revenue & Deposits
Property, Plan & Equipment 2,595.1 2,543 2,496 2,554 2,689 2,900 Accrued Liabilities
Licenses 1,482.4 1,482.4 1,482.4 1,482.4 1,482.4 1,482.4 Taxes Payable
Customer Lists 15.4 15.4 15.4 15.4 15.4 15.4 Other Current Liabilities
Investments in Affiliated Entities 157.7 157.7 157.7 157.7 157.7 157.7 TOTAL CL
Long Term Note Receivable 4.4 4.4 4.4 4.4 4.4 4.4
Goodwill 491.3 491.3 491.3 491.3 491.3 491.3 NWC
Other Long Term Assets 31.8 31.8 31.8 31.8 31.8 31.8 Delta NWC
Total LT Assets 4,778.1 4,726.0 4,679.4 4,737.4 4,872.0 5,083.3
Total Assets 5,611.9 5,581.3 5,627.3 5,774.8 6,043.3 6,281.1

Liablities & Equity

Accounts Payable 260.8 341.6 391.7 442.9 490.5 526.6

Deferred Revenue & Deposits 143.4 134.7 154.4 174.6 193.4 207.6
Accrued Liabilities 59.2 65.8 75.4 85.3 94.5 101.4
Taxes Payable 43.1 43.1 43.1 43.1 43.1 43.1
Other Current Liabilities 97.7 97.7 97.7 97.7 97.7 97.7
Total Current Liabilities 604.2 682.8 762.3 843.6 919.2 976.5

Long Term Debt 1,002.3 3,467.6 3,161.3 2,837.8 2,496.0 2,019.6

Deferred Tax Liability 554.4 554.4 554.4 554.4 554.4 554.4
Asset Retirement Obligation 126.8 126.8 126.8 126.8 126.8 126.8
Other Deferred Liabilities 84.5 84.5 84.5 84.5 84.5 84.5

Minority Interest 43.4 43.4 43.4 43.4 43.4 43.4

Total liablities 2,415.7 4,959.7 4,732.9 4,490.6 4,224.4 3,805.3
Owners' Equity 3,196.2 621.7 894.4 1,284.2 1,819.0 2,475.8
Liablities & Equity 5,611.9 5,581.3 5,627.3 5,774.8 6,043.3 6,281.1

Starting Cash 205 81 62 37 59

FCFF 286 397 398 453 494
I(1-T) 119 110 100 89 77
Principal payments 290 306 324 342 2,496
Ending Cash 81 62 37 59 -2,019.6
FCFE (124) (19) (25) 22 (2,079)

Rf 4.25%
MRP 5%
Kd 5.50%
Beta (levered) 1.13 considering the beta euity for Rocky Mountain as it as same size of operations
Beta (unleavered) 0.89
Ka 8.71%
D/V 0.50
D/E 1.00
Ke (levered) 11.92%
WACC 7.61% Hurdle rate

Reinvestment rate=(net capex+change in WC)/EBIT(1-t)

Net Capex 211

detla WC 28
Reinvestmnet rate 32.63%

return on capital = EBIT(1 − t)/(Book value of Equity + Book value of debt− Cash and marketable securities)
return on capital = 12.02%

Expected growthEBIT = Reinvestment rate × Return on capital

Expected growth 3.9%
Discounting base case cash flows and TV to PV

0 1 2 3 4 5
FCFF 286 397 398 453 494
TV 10725
FCFF with TV 286 397 398 453 11219 1,575
Base case value 8621
11,326
7,592
Financing side effects
0 1 2 3 4 5
ITS 80 73 66 59 51
TV 1111 285 ###
Total 80 73 66 59 1162 1,173 632
PV of ITS 1135 423

APV 9756 Base case value + PV of ITS

Operating Assumptions

269 387 570 704

13.4 25.8 52.5 76

ca 435 540 626 714 802 869
ca 101 135 154 173 190 204
ca 42 48 55 62 69 74
ca 19 19 19 19 19 19
ca 16 16 16 16 16 16
613 757 870 984 1,096 1,181

cl 261 342 392 443 491 527

cl 143 135 154 175 193 208
cl 59 66 75 85 94 101
cl 43 43 43 43 43 43
cl 98 98 98 98 98 98
604 683 762 844 919 976

9 75 107 140 177 205

66 33 33 37 28
AIRTHREAD ACQUISITION

Rev inc 156

Revenue Projections: 2008 2009 2010 2011 2012

Service Revenue 4,194.3 4,781.5 5,379.2 5,917.2 6,331.4 Back hauling savings 0
Service Revenue Growth 14.0% 14.0% 12.5% 10.0% 7.0%

Equipment Revenue 314.8 358.8 403.7 444.1 475.2

Equipment Revenue/Service Revenue (1) 7.5% 7.5% 7.5% 7.5% 7.5%
Synergy 0.0 0.0 0.0 0.0 0.0
Toatal Revenue 4,509 5,140 5,783 6,361 6,807

Operating Expenses:
System Operating Expenses 838.9 956.3 1,075.8 1,183.4 1,266.3
System Operating Exp./Service Revenue 20.0% 20.0% 20.0% 20.0% 20.0%

Cost of Equipment Sold 755.5 861.2 968.9 1,065.8 1,140.4

Equipment COGS 240.0% 240.0% 240.0% 240.0% 240.0%

Selling, General & Administrative 1,803.6 2,056.2 2,313.2 2,544.5 2,722.6

SG&A/Total Revenue 40.0% 40.0% 40.0% 40.0% 40.0%
Savings 0.0 0.0 0.0 0.0 0.0
Total Expense 3,398 3,874 4,358 4,794 5,129

Depreciation & Amortization 705.2 804.0 867.4 922.4 952.9

Tax Rate 40.0% 40.0% 40.0% 40.0% 40.0%

Working Capital Assumptions (1):

Accounts Receivable 41.67x 41.67x 41.67x 41.67x 41.67x
Days Sales Equip. Rev. 154.36x 154.36x 154.36x 154.36x 154.36x
Prepaid Expenses 1.38% 1.38% 1.38% 1.38% 1.38%
Accounts Payable 35.54x 35.54x 35.54x 35.54x 35.54x
Deferred Serv. Revenue 14.01x 14.01x 14.01x 14.01x 14.01x
Accrued Liabilities 6.85x 6.85x 6.85x 6.85x 6.85x

Capital Expenditures (2):

Capital Expenditures 631.3 719.7 867.4 970.1 1,055.0
Cap-x/Total Revenue 14.0% 14.0% 15.0% 15.3% 15.5%

Income Statement
2008 2009 2010 2011 2012
Total revenue 4509 5140 5783 6361 6807
Toatal expenses 3398 3874 4358 4794 5129
EBDITA 1111 1267 1425 1568 1677
DEP 705 804 867 922 953
EBIT 406 463 558 645 724
Intrest 199 183 166 148 128
EBT 207 280 392 497 596
TAX 83 112 157 199 239
Net Income 124 168 235 298 358

Unleavered free cash flow

EBIT(1-T) 244 278 335 387 435
Dep 705 804 867 922 953
OFC 949 1082 1202 1309 1388
Delta NWC 66 33 33 37 28
CAPEX 631 720 867 970 1055
FCFF 251 329 301 303 304

Balance Sheet
Assets
Working Capital
Cash & Cash Equivalents ca 204.5 47 (40) (161) (289) 0
Marketable Securities ca 16.4 16.4 16.4 16.4 16.4 16.4 Accounts Receivable
Accounts Receivable ca 435 522 595 669 736 788 Days Sales Equip. Rev.
Days Sales Equip. Rev. ca 101 135 154 173 190 204 Prepaid Expenses
Prepaid Expenses ca 42 47 53 60 66 71 Deffered tax
Deffered tax ca 19 19 19 19 19 19 Other CA
Other CA ca 16 16 16 16 16 16 TOTAL CA
Total CA 834 802 814 793 755 1,113
Accounts Payable
Deferred Revenue & Deposits
Property, Plan & Equipment 2,595.1 2,521 2,437 2,437 2,485 2,587 Accrued Liabilities
Licenses 1,482.4 1,482.4 1,482.4 1,482.4 1,482.4 1,482.4 Taxes Payable
Customer Lists 15.4 15.4 15.4 15.4 15.4 15.4 Other Current Liabilities
Investments in Affiliated Entities 157.7 157.7 157.7 157.7 157.7 157.7 TOTAL CL
Long Term Note Receivable 4.4 4.4 4.4 4.4 4.4 4.4
Goodwill 491.3 491.3 491.3 491.3 491.3 491.3 NWC
Other Long Term Assets 31.8 31.8 31.8 31.8 31.8 31.8 Delta NWC
Total LT Assets 4,778.1 4,704.2 4,619.9 4,619.9 4,667.6 4,769.7
Total Assets 5,611.9 5,506.3 5,433.8 5,412.4 5,422.4 5,883.2

Liablities & Equity

Accounts Payable 260.8 335.4 382.4 430.2 473.2 506.3

Deferred Revenue & Deposits 143.4 132.3 150.8 169.6 186.6 199.6
Accrued Liabilities 59.2 64.6 73.7 82.9 91.1 97.5
Taxes Payable 43.1 43.1 43.1 43.1 43.1 43.1
Other Current Liabilities 97.7 97.7 97.7 97.7 97.7 97.7
Total Current Liabilities 604.2 673.1 747.6 823.4 891.7 944.3

Long Term Debt 1,002.3 3,467.6 3,161.3 2,837.8 2,496.0 2,557.6

Deferred Tax Liability 554.4 554.4 554.4 554.4 554.4 554.4
Asset Retirement Obligation 126.8 126.8 126.8 126.8 126.8 126.8
Other Deferred Liabilities 84.5 84.5 84.5 84.5 84.5 84.5

Minority Interest 43.4 43.4 43.4 43.4 43.4 43.4

Total liablities 2,415.7 4,949.9 4,718.1 4,470.4 4,196.9 4,311.0
Owners' Equity 3,196.2 556.4 715.7 942.0 1,225.5 1,572.1
Liablities & Equity 5,611.9 5,506.3 5,433.8 5,412.4 5,422.4 5,883.2

Starting Cash 205 47 (40) (161) (289)

FCFF 251 329 301 303 304
I(1-T) 119 110 100 89 77
Principal payments 290 306 324 342 2,496
Ending Cash 47 (40) (161) (289) -2,557.6
FCFE (158) (87) (122) (128) (2,268)

Rf 4.25%
MRP 5%
Kd 5.50%
Beta (levered) 1.13 considering the beta euity for Rocky Mountain as it as same size of operations
Beta (unleavered) 0.89
Ka 8.71%
D/V 0.50
D/E 1.00
Ke (levered) 11.92%
WACC 7.61% Hurdle rate

Reinvestment rate=(net capex+change in WC)/EBIT(1-t)

Net Capex 102

detla WC 28
Reinvestmnet rate 29.97%

return on capital = EBIT(1 − t)/(Book value of Equity + Book value of debt− Cash and marketable securities)
return on capital = 7.31%

Expected growthEBIT = Reinvestment rate × Return on capital

Expected growth 2.2%
 Baseline preformance

0 1 2 3 4 5
FCFF 251 329 301 303 304
TV 4771
FCFF with TV 251 329 301 303 5075
Baseline value 4304

Financing side effects

0 1 2 3 4 5
ITS 80 73 66 59 51
TV 1111
Toatal 80 73 66 59 1162
PV of ITS 1135

Real option Value 4,317

Operating Assumptions

269 387 570 704

13.4 25.8 52.5 76

ca 435 540 626 714 802 869
ca 101 135 154 173 190 204
ca 42 48 55 62 69 74
ca 19 19 19 19 19 19
ca 16 16 16 16 16 16
613 757 870 984 1,096 1,181

cl 261 342 392 443 491 527

cl 143 135 154 175 193 208
cl 59 66 75 85 94 101
cl 43 43 43 43 43 43
cl 98 98 98 98 98 98
604 683 762 844 919 976

9 75 107 140 177 205

66 33 33 37 28
AIRTHREAD ACQUISITION Operating Assump

Revenue Projections: 2008 2009 2010 2011 2012

Service Revenue 4,194.3 4,781.5 5,379.2 5,917.2 6,331.4
Service Revenue Growth 14.0% 14.0% 12.5% 10.0% 7.0%

Equipment Revenue 314.8 358.8 403.7 444.1 475.2

Equipment Revenue/Service Revenue (1) 7.5% 7.5% 7.5% 7.5% 7.5%

Operating Expenses:
System Operating Expenses 838.9 956.3 1,075.8 1,183.4 1,266.3
System Operating Exp./Service Revenue 20.0% 20.0% 20.0% 20.0% 20.0% ie 20% gross margin

Cost of Equipment Sold 755.5 861.2 968.9 1,065.8 1,140.4

Equipment COGS 240.0% 240.0% 240.0% 240.0% 240.0%

Selling, General & Administrative 1,803.6 2,056.2 2,313.2 2,544.5 2,722.6

SG&A/Total Revenue 40.0% 40.0% 40.0% 40.0% 40.0%

Depreciation & Amortization 705.2 804.0 867.4 922.4 952.9

Tax Rate 40.0% 40.0% 40.0% 40.0% 40.0%

Working Capital Assumptions (1):

Accounts Receivable 41.67x 41.67x 41.67x 41.67x 41.67x
Days Sales Equip. Rev. 154.36x 154.36x 154.36x 154.36x 154.36x
Prepaid Expenses 1.38% 1.38% 1.38% 1.38% 1.38%
Accounts Payable 35.54x 35.54x 35.54x 35.54x 35.54x
Deferred Serv. Revenue 14.01x 14.01x 14.01x 14.01x 14.01x
Accrued Liabilities 6.85x 6.85x 6.85x 6.85x 6.85x

Capital Expenditures (2):

Capital Expenditures 631.3 719.7 867.4 970.1 1,055.0
Cap-x/Total Revenue 14.0% 14.0% 15.0% 15.3% 15.5%

Accounts Receivable ca 522 595 669 736 788

Days Sales Equip. Rev ca 135 154 173 190 204
Prepaid Expenses ca 47 53 60 66 71
Accounts Payable cl 335 382 430 473 506
Deferred Serv. Revenucl 132 151 170 187 200
Accrued Liabilities cl 65 74 83 91 98
NWC 171 195 220 242 259
 24.01 24.44 21.99 16.94

(1) Based on a 360-day year. Days Payable, Deferred Service Revenue, and Days Accrued Liabilities are
based on total cash operating expenses.
(2) Includes investments in property, plant & equipment, as well as licenses and customer lists.
ating Assumptions
AIRTHREAD ACQUISITION Licensing Agreemts

Total Consolidated Markets:

Region Population Customers Penetration
Central US 65,096 3,846 5.9%
Mid-Atlantic 11,677 1,180 10.1%
New England 2,830 518 18.3%
Northwest 2,287 431 18.8%
New York 481 147 30.6%
Total 82,371 6,122 7.4%

Total Operating Markets:

Region Population Customers Penetration
Central US 32,497 3,846 11.8%
Mid-Atlantic 7,346 1,180 16.1%
New England 2,344 518 22.1%
Northwest 2,287 431 18.8%
New York 481 147 30.6%
Total 44,955 6,122 13.6%
Harvard Business Publishing
AIRTHREAD ACQUISITION Customer Operating Data

Customer Data: 2005 2006 2007

Net Customer Additions 301 310 477
Cost Per Customer Addition 372 385 487
Cost of New Customer Additions 111,972 119,350 232,299

Cost of Equipment Sold/Equipment Revenue 251.3% 219.9% 239.8%

Monthly Churn Rate 2.1% 2.1% 1.7%

Revenue Per Minute 2005 2006 2007

Monthly ARPU 45.24 47.23 51.13
Customer Minutes Per Month 625 704 859
Revenue Per Minute 0.0724 0.0671 0.0595
Harvard Business Publishing
AIRTHREAD ACQUISITION Income Statement
Historical Operating Results

Operating Results: 2005 2006 2007

Service Revenue 2,827.0 3,214.4 3,679.2
Plus: Equipment Sales 203.7 258.7 267.0
Total Revenue 3,030.8 3,473.2 3,946.3
Less: System Operating Expenses 604.1 639.7 717.1
Less: Cost of Equipment Sold 511.9 568.9 640.2
Less: Selling, General & Administrative 1,217.7 1,399.6 1,555.6
EBITDA 697.0 865.0 1,033.3
Less: Depreciation & Amortization 490.1 555.5 582.3
EBIT 206.9 309.5 451.1
Less: Interest Expense 84.9 93.7 84.7
Plus: Equity in Earnings of Affiliates 66.7 93.1 90.0
Plus: Gains (Losses) on Investments 18.1 50.8 83.1
Plus: Other Income 54.5 (46.6) 7.0
EBT 261.3 313.1 546.5
Less: Taxes 95.9 120.6 216.7
Income Before Minority Interest 165.5 192.5 329.8
Less: Minority Interest 10.5 13.0 15.1
Net Income 155.0 179.5 314.7
Harvard Business Publishing
AIRTHREAD ACQUISITION Balance Sheet

Assets: 2005 2006 2007 2008 2009 2010 2011 2012

Cash & Cash Equivalents 29.0 32.9 204.5
Marketable Securities 0.0 249.0 16.4 16.4 16.4 16.4 16.4 16.4
Accounts Receivable 362.4 407.4 435.5
Inventory 92.7 117.2 101.0
Prepaid Expenses 32.1 35.0 41.6
Deferred Taxes 8.2 0.0 18.6
Other Current Assets 15.5 13.4 16.2
Total Current Assets 539.9 854.9 833.8

Property, Plan & Equipment 2,553.0 2,628.8 2,595.1

Licenses 1,362.3 1,494.3 1,482.4
Customer Lists 47.6 26.2 15.4
Marketable Equity Securities 225.4 4.9 0.0
Investments in Affiliated Entities 172.1 150.3 157.7
Long Term Note Receivable 4.7 4.5 4.4
Goodwill 481.2 485.5 491.3
Other Long Term Assets 30.0 31.1 31.8
Total Assets 5,416.2 5,680.6 5,611.9

Liabilities & Owners' Equity:

Accounts Payable 254.1 254.9 260.8
Deferred Revenue & Deposits 111.4 123.3 143.4
Accrued Liabilities 42.9 47.8 59.2
Taxes Payable 36.7 26.9 43.1
Deferred Taxes 0.0 26.3 0.0
Note Payable 135.0 35.0 0.0
Forward Contract 0.0 159.9 0.0
Derivative Liability 0.0 88.8 0.0
Other Current Liabilities 82.6 93.7 97.7
Total Current Liabilities 662.7 856.7 604.2

Long Term Debt 1,001.4 1,001.8 1,002.3 3,468

Forward Contracts 159.9 0.0 0.0 0.0
Derivative Liability 25.8 0.0 0.0 0.0
Deferred Tax Liability 647.1 601.5 554.4 554.4 554.4 554.4 554.4
Asset Retirement Obligation 90.2 127.6 126.8 126.8 126.8 126.8 126.8
Other Deferred Liabilities 46.2 62.9 84.5 84.5 84.5 84.5 84.5

Minority Interest 41.9 36.7 43.4 43.4 43.4 43.4 43.4

Common Stock & Paid-In Capital 1,375.0 1,378.9 1,404.1
Retained Earnings 1,366.0 1,614.4 1,792.1
Total Liabilities & Owners' Equity 5,416.2 5,680.6 5,611.9
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AIRTHREAD ACQUISITION Amortization Schedule
Term Loan Amortization

Annual Amortization Annual Amortization

Payment Interest Principal Balance Period Payment Interest Principal Balance Period
Date: 41 5.50% 3,758 120 Date: 41 5.50% 2,698 84
1/31/2008 41 17 24 3,734 1 6/30/2011 41 12 28 2,669 42
2/28/2008 41 17 24 3,710 2 7/31/2011 41 12 29 2,641 43
3/31/2008 41 17 24 3,687 3 8/31/2011 41 12 29 2,612 44
4/30/2008 41 17 24 3,663 4 9/30/2011 41 12 29 2,583 45
5/31/2008 41 17 24 3,639 5 10/31/2011 41 12 29 2,554 46
6/30/2008 41 17 24 3,615 6 11/30/2011 41 12 29 2,525 47
7/31/2008 41 17 24 3,590 7 12/31/2011 41 12 29 2,496 48
8/31/2008 41 16 24 3,566 8 1/31/2012 41 11 29 2,467 49
9/30/2008 41 16 24 3,542 9 2/28/2012 41 11 29 2,437 50
10/31/2008 41 16 25 3,517 10 3/31/2012 41 11 30 2,408 51
11/30/2008 41 16 25 3,492 11 4/30/2012 41 11 30 2,378 52
12/31/2008 41 16 25 3,468 12 5/31/2012 41 11 30 2,348 53
1/31/2009 41 16 25 3,443 13 6/30/2012 41 11 30 2,318 54
2/28/2009 41 16 25 3,418 14 7/31/2012 41 11 30 2,288 55
3/31/2009 41 16 25 3,393 15 8/31/2012 41 10 30 2,257 56
4/30/2009 41 16 25 3,367 16 9/30/2012 41 10 30 2,227 57
5/31/2009 41 15 25 3,342 17 10/31/2012 41 10 31 2,196 58
6/30/2009 41 15 25 3,317 18 11/30/2012 41 10 31 2,166 59
7/31/2009 41 15 26 3,291 19 12/31/2012 2,176 10 2,166 0 60
8/31/2009 41 15 26 3,265 20
9/30/2009 41 15 26 3,239 21
10/31/2009 41 15 26 3,214 22
11/30/2009 41 15 26 3,188 23
12/31/2009 41 15 26 3,161 24
1/31/2010 41 14 26 3,135 25
2/28/2010 41 14 26 3,109 26
3/31/2010 41 14 27 3,082 27
4/30/2010 41 14 27 3,055 28
5/31/2010 41 14 27 3,029 29
6/30/2010 41 14 27 3,002 30
7/31/2010 41 14 27 2,975 31
8/31/2010 41 14 27 2,948 32
9/30/2010 41 14 27 2,920 33
10/31/2010 41 13 27 2,893 34
11/30/2010 41 13 28 2,865 35
12/31/2010 41 13 28 2,838 36
1/31/2011 41 13 28 2,810 37
2/28/2011 41 13 28 2,782 38
3/31/2011 41 13 28 2,754 39
4/30/2011 41 13 28 2,726 40
5/31/2011 41 12 28 2,698 41

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Harvard Business Publishing
AIRTHREAD ACQUISITION Wireless Comparables

Equity Net Debt/ Debt/ Equity Net

Comparable Companies: Market Value Debt Value Equity Beta1 Revenue EBIT EBITDA Income
Universal Mobile 118,497 69,130 36.8% 58.3% 0.86 43,882 11,795 16,949 3,794
Neuberger Wireless 189,470 79,351 29.5% 41.9% 0.89 42,684 7,020 14,099 4,103
Agile Connections 21,079 5,080 19.4% 24.1% 1.17 34,698 1,631 9,914 (30)
Big Country Communications 26,285 8,335 24.1% 31.7% 0.97 38,896 6,702 12,614 3,384
Rocky Mountain Wireless 7,360 3,268 30.7% 44.4% 1.13 4,064 510 1,028 240
Average 28.1% 40.1% 1.00

1) Equity betas were estimated on a weekly based on weekly stock returns over a three year period.
Note: The current industry and competitor leverage ratios reflect the historical averages that existed over the past three years.
Harvard Business Publishing