EX-99.(C)(2) 4 a2165176zex-99_c2.htm EXHIBIT 99.(C)(2)


























 

Searchable text section of graphics shown above

 


 

Confidential

 

A Presentation to the Board of Directors of

 

[LOGO]

 

Regarding Project TWINS

 

October 26, 2005

 

[LOGO]

 


 

Disclaimer

 

The historical financial information contained in this presentation has been obtained from Transport Corp. of America Inc. (“TCAM” or the “Company”), and public SEC filings; and has not been independently verified.  The projections contained in this presentation regarding the future financial performance of TCAM are based upon forecasts provided by TCAM.  Stephens Inc. has relied upon the accuracy of such historical financial information and projected financial results in preparing this presentation.  Any inaccuracies in such historical financial information or projected financial results may change the conclusions expressed in this presentation.  Stephens Inc. assumes no responsibility for any such inaccuracies in the historical financial information or projected financial results used in this presentation.  This presentation has been prepared as of October 26, 2005 and reflects only information made available to us prior to such date.  It does not include information regarding all of the assessments made by Stephens Inc. in arriving at its conclusions.  This presentation has been prepared solely for the use of the Board of Directors of TCAM.  It is confidential and may not be disclosed or provided to any third parties without the written permission of Stephens Inc.

 

[LOGO]

 



 

I.      Executive Summary

 


 

Key Transaction Terms

 

Transaction

•      Goldner Hawn Johnson & Morrison Inc. (“GHJM”) is to acquire 100% of the fully-diluted stock of TCAM for $10.00 per share in an all cash merger transaction.

 

•      Management is offered an opportunity to participate in the transaction.

 

 

Valuation

This transaction represents:

 

•      An equity value of $68.0 million and an enterprise value of $113.7 million.

 

•      A premium of 25.0% and 28.3% over the most recent and 30 day average closing share price.

 

•      40.8x 2005E EPS and 21.9x 2005E EBIT.

 

 

Consideration /

•      All cash financed by GHJM’s Marathon Fund and Wells Fargo and/or LaSalle.

Financing

•      GHJM has obtained financing commitments for the debt portion of the transaction.

 

 

Approvals /

•      TCAM shareholder approval.

Conditions

•      HSR and other customary closing conditions.

 

 

Deal Protection

•      Termination fee of $2 million plus expenses of up to $1 million (in total 4.4% of equity value).

 

•      TCAM subject to standard non-solicitation provision with fiduciary out.

 

 

Timing

•      Expected closing January 2006.

 

5


 

Transaction Valuation

(Dollars in Millions, Except per Share)

 

 

 

 

 

Current
10/25/05

 

Offer
Price

 

Price Per Share

 

 

 

$

8.00

 

$

10.00

 

 

 

 

 

 

 

 

 

% Change / Implied Premium:

 

 

 

 

 

 

 

1 Day Prior

 

$

8.21

 

 

 

21.8

%

30 Day Average

 

7.80

 

 

 

28.3

%

90 Day Average

 

7.26

 

 

 

37.8

%

52 Week High (1/13/05)

 

10.02

 

 

 

-0.2

%

52 Week Low (5/12/05)

 

5.87

 

 

 

70.4

%

 

 

 

 

 

 

 

 

Market Capitalization

 

 

 

$

53.5

 

$

68.0

 

Plus: Net Debt (9/30/05)

 

 

 

45.6

 

45.6

 

Enterprise Value

 

 

 

$

99.1

 

$

113.7

 

 

 

 

 

 

 

 

 

Valuation Multiples

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2005E EBIT

 

 

 

19.1

x

21.9

x

2006E EBIT

 

 

 

6.7

 

7.7

 

 

 

 

 

 

 

 

 

2005E EPS

 

 

 

32.7

x

40.8

x 

2006E EPS

 

 

 

8.2

 

10.2

 

 

 

 

 

 

 

 

 

Equity Book Value as of (9/30/05)

 

 

 

0.9

x

1.2

x 

 

Note: Projections per TCAM management. 2005 projections were developed on 10/13/05 and include actual YTD performance through 9/30/05. 2006 projections were developed prior to release of second quarter financials.

 

6


 

Process History

 

•                   June 2005 – Stephens is engaged by the Board of Directors (“BOD”) to assist the Company in analyzing strategic alternatives.

 

•                   June and July 2005 – Stephens presented to the BOD regarding multiple strategic alternatives — BOD instructs Stephens to examine several potential alternatives, including contacting potential acquirers of the business.  The Company prepares information to supplement its publicly disseminated information (additional information).

 

•                   July 2005 – Stephens contacts 37 potential buyers, 12 of which request additional information.

 

•                   August 2005 – Stephens received several bids including one from GHJM.

 

•                  GHJM submits an indication at $10.00 per share.

 

•                  GHJM invited to management presentation and allowed access to “data room” materials.

 

•                   Early September 2005 – GHJM submits letter of intent and mark-up of definitive agreement — valuation remains at $10.00 per share.

 

•                   September and October 2005 – TCAM negotiates an LOI with GHJM, granting a short exclusivity period until October 11th and extended to October 14th.

 

7


 

II.    Financial Overview and Trading History

 


 

TCAM’s Current Situation

 

•                  TCAM’s operating and financial performance has lagged the broader truckload industry

 

•                  The issue of unseated tractors has slowed income statement improvements.

 

•                  Erratic quarter-to-quarter performance.

 

•                  TCAM has had difficulty fully-capitalizing on the strong freight environment.

 

•                  Stock Price Performance has under-performed relative to industry

 

•                  Balance Sheet

 

•                  High leverage ratios compared to other carriers.

 

•                  Driver Crisis

 

•                  Declining driver base causing reverse operating leverage.

 

•                  Seated tractors have declined from 1,908 in 2001 to less than 1,300 currently.

 

•                  Although driver turnover is low relative to competitors, TCAM has experienced less success in maintaining and growing driver base relative to publicly-traded competitors.

 

•                  Micro-cap Public Company Lacking “Sponsorship”

 

•                  TCAM is bearing the cost, but is not receiving the benefits of public company status — access to capital, currency for acquisitions, etc.

 

•                  No research coverage from top tier transportation analysts.

 

•                  Trading volume at low end of the range of TLs.

 

9


 

Comparative Financial Performance

 

Operating Ratio

 

[CHART]

 

 

 

Operating Ratio

 

Company

 

2001

 

2002

 

2003

 

2004

 

LTM

 

 

 

 

 

 

 

 

 

 

 

 

 

CLDN

 

98.6

%

96.9

%

96.5

%

95.8

%

94.6

%

CVTI

 

97.2

%

95.0

%

95.2

%

94.5

%

97.0

%

HTLD

 

82.1

%

81.8

%

81.0

%

79.5

%

80.7

%

JBHT

 

97.3

%

95.6

%

92.4

%

89.0

%

88.3

%

KNX

 

84.2

%

83.4

%

82.5

%

82.1

%

81.8

%

MRTN

 

94.7

%

96.0

%

93.9

%

91.8

%

90.6

%

PTSI

 

90.2

%

88.8

%

93.0

%

94.1

%

93.9

%

SWFT

 

95.9

%

94.4

%

94.1

%

93.6

%

93.9

%

USAK

 

97.4

%

96.6

%

96.6

%

94.8

%

92.4

%

WERN

 

93.8

%

92.6

%

91.9

%

91.6

%

91.7

%

XPRSA

 

98.3

%

97.6

%

97.4

%

96.4

%

97.4

%

Average

 

93.6

%

92.6

%

92.2

%

91.2

%

91.1

%

 

 

 

 

 

 

 

 

 

 

 

 

TCAM

 

97.5

%

98.6

%

99.0

%

97.4

%

97.7

%

 

Return on Invested Capital (a)

 

[CHART]

 

 

 

Return on Invested Capital

 

Company

 

2001

 

2002

 

2003

 

2004

 

LTM

 

 

 

 

 

 

 

 

 

 

 

 

 

CLDN

 

1.7

%

3.9

%

5.3

%

8.6

%

13.4

%

CVTI

 

2.7

%

5.4

%

5.5

%

6.8

%

3.8

%

HTLD

 

35.6

%

30.4

%

28.7

%

32.4

%

32.3

%

JBHT

 

3.4

%

5.9

%

10.7

%

16.9

%

18.7

%

KNX

 

12.5

%

13.5

%

14.9

%

16.1

%

16.6

%

MRTN

 

5.4

%

3.8

%

6.3

%

8.2

%

9.4

%

PTSI

 

8.7

%

10.5

%

6.3

%

5.4

%

5.4

%

SWFT

 

3.8

%

5.0

%

5.6

%

6.6

%

6.6

%

USAK

 

2.1

%

3.2

%

3.4

%

5.0

%

7.6

%

WERN

 

6.1

%

7.2

%

8.0

%

9.2

%

9.3

%

XPRSA

 

2.4

%

3.3

%

3.9

%

5.7

%

4.1

%

Average

 

7.7

%

8.4

%

9.0

%

11.0

%

11.6

%

 

 

 

 

 

 

 

 

 

 

 

 

TCAM

 

1.9

%

1.3

%

1.0

%

3.0

%

2.7

%

 

(a) Defined as net operating profit after tax divided by average invested capital.

 

10


 

Recent Earnings Shortfalls Have Erased Share Price Improvements

 

TCAM Stock Price and Volume – 2 Year

 

Current Market Price as of 10/25/05

 

$

8.00

 

2 Year High (1/13/05)

 

10.02

 

2 Year Low (5/12/05)

 

5.87

 

Average Daily Volume (000s)

 

11.5

 

Average Daily Volume - Last 30 Days (000s)

 

6.9

 

 

[CHART]

 

Earnings Announcements

 

 

 

A

 

B

 

C

 

D

 

E

 

F

 

G

 

H

 

I

 

 

 

3Q03

 

4Q03

 

1Q04

 

2Q04

 

3Q04

 

4Q04

 

1Q05

 

2Q05

 

3Q05

 

Date Announced

 

10/16/03

 

2/10/04

 

4/15/04

 

7/27/04

 

10/27/04

 

2/8/05

 

4/26/05

 

7/26/05

 

10/25/05

 

Operating Revenues

 

$

64.1

 

$

62.1

 

$

62.1

 

$

65.2

 

$

65.7

 

$

65.3

 

$

61.4

 

$

62.8

 

$

64.4

 

Net Income

 

0.3

 

0.2

 

0.1

 

0.9

 

0.0

 

1.1

 

0.1

 

0.5

 

0.2

 

EPS

 

$

0.03

 

$

0.02

 

$

0.01

 

$

0.13

 

$

0.01

 

$

0.17

 

$

0.01

 

$

0.08

 

$

0.03

 

Operating Ratio

 

97.5

%

98.1

%

98.5

%

96.5

%

98.8

%

96.0

%

98.7

%

97.5

%

98.5

%

 

11


 

TCAM Has Underperformed The Industry Over A Long Time Frame

 

TCAM Relative Stock Performance – 5 Year

 

[CHART]

 

Composite includes: CLDN, CVTI, HTLD, JBHT, KNX, MRTN, PTSI, SWFT, XPRSA, USAK and WERN.

 

12


 

TCAM Trading Volume Analysis – 2 Year

 

(October 25, 2003 – October 25, 2005)

 

Price
Range

 

# of
Days
Traded

 

Average
Volume

 

Total
Volume

 

Shares Traded
at or
Below Range

 

 

 

 

 

 

 

 

 

 

 

$9.51 - $10.00

 

1

 

5,300

 

5,300

 

100.0

%

 

 

 

 

 

 

 

 

 

 

$9.01 - $9.50

 

18

 

13,769

 

247,846

 

99.9

%

 

 

 

 

 

 

 

 

 

 

$8.51 - $9.00

 

50

 

13,902

 

695,117

 

95.7

%

 

 

 

 

 

 

 

 

 

 

$8.01 - $8.50

 

43

 

16,696

 

717,941

 

83.9

%

 

 

 

 

 

 

 

 

 

 

$7.51 - $8.00

 

136

 

8,468

 

1,151,584

 

71.6

%

 

 

 

 

 

 

 

 

 

 

$7.01 - $7.50

 

157

 

12,363

 

1,940,983

 

52.0

%

 

 

 

 

 

 

 

 

 

 

$6.51 - $7.00

 

74

 

10,737

 

794,524

 

19.0

%

 

 

 

 

 

 

 

 

 

 

$6.00 - $6.50

 

26

 

12,262

 

318,814

 

5.4

%

 

 

 

 

 

 

 

 

 

 

Total

 

505

 

11,628

 

5,872,109

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Price

 

 

 

 

 

$

7.65

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Price

 

 

 

10/25/05

 

$

8.00

 

 

 

 

Distribution of Total Volume Traded

 

[CHART]

 

13


 

TCAM Ownership Profile

 

 

 

Shares
Owned

 

As a % of
Total
Shares Out.

 

Options
Outstanding

 

Total
Shares &
Equivalents

 

As a % of
Fully Diluted
Shares Out.

 

Institutional Holders (a)

 

 

 

 

 

 

 

 

 

 

 

Rutabaga Capital Management LLC

 

1,033,463

 

15.7

%

The Top 5

 

1,033,463

 

14.2

%

Wasatch Advisors, Inc.

 

926,686

 

14.1

%

Institutional

 

926,686

 

12.8

%

Central Securities Corp.

 

531,557

 

8.1

%

Shareholders have

 

531,557

 

7.3

%

Huntington Partners LP (Samuel Ellis)

 

364,116

 

5.5

%

48.9% of the shares

 

364,116

 

5.0

%

T. Rowe Price Associates, Inc.

 

351,800

 

5.4

%

outstanding.

 

351,800

 

4.8

%

Advisory Research, Inc.

 

247,286

 

3.8

%

 

 

247,286

 

3.4

%

Perritt Capital Management, Inc.

 

198,300

 

3.0

%

 

 

198,300

 

2.7

%

Fifth Third Asset Management

 

142,000

 

2.2

%

 

 

142,000

 

2.0

%

Keane Capital Management, Inc.

 

116,837

 

1.8

%

 

 

116,837

 

1.6

%

Dimensional Fund Advisors, Inc.

 

107,195

 

1.6

%

 

 

107,195

 

1.5

%

LSV Asset Management

 

65,500

 

1.0

%

 

 

65,500

 

0.9

%

Lehman Brothers, Inc.

 

56,000

 

0.9

%

 

 

56,000

 

0.8

%

All Others as a Group

 

224,692

 

3.4

%

 

 

224,692

 

3.1

%

Total Institutional Holders

 

4,365,432

 

66.5

%

 

 

4,365,432

 

60.1

%

 

 

 

 

 

 

 

 

 

 

 

 

Estimated Individual Float

 

1,992,039

 

30.4

%

 

 

1,992,039

 

27.4

%

 

 

 

 

 

 

 

 

 

 

 

 

Public Float

 

6,357,471

 

96.9

%

 

 

6,357,471

 

87.5

%

 

 

 

 

 

 

 

 

 

 

 

 

Corporate Insiders and Beneficial Owners (b)

 

 

 

 

 

 

 

 

 

 

 

Paxton, Michael J. - Chairman, CEO and President

 

15,680

 

0.2

%

310,000

 

325,680

 

4.5

%

Klein, Keith R. - CFO, CIO

 

9,248

 

0.1

%

104,296

 

113,544

 

1.6

%

Roering, Kenneth J. - Director

 

83,900

 

1.3

%

20,000

 

103,900

 

1.4

%

Johnson, Larry E. - VP Marketing

 

26,820

 

0.4

%

34,065

 

60,885

 

0.8

%

Christianson, Tony J. - Director

 

34,292

 

0.5

%

24,000

 

58,292

 

0.8

%

Slattery, William D. - Director

 

24,000

 

0.4

%

20,000

 

44,000

 

0.6

%

Coyan, Craig A. - VP Sales and Marketing

 

—

 

0.0

%

43,809

 

43,809

 

0.6

%

Kipp, Ronald C. - VP Operations

 

1,000

 

0.0

%

41,585

 

42,585

 

0.6

%

Osborne, Charles M. - Director

 

10,000

 

0.2

%

8,000

 

18,000

 

0.2

%

Murnane, William P. - Director

 

—

 

0.0

%

16,000

 

16,000

 

0.2

%

Farra, Peggy C.

 

475

 

0.0

%

15,000

 

15,475

 

0.2

%

McBurney, Thomas R. - Director

 

—

 

0.0

%

8,000

 

8,000

 

0.1

%

Other Options

 

—

 

0.0

%

55,750

 

55,750

 

0.8

%

Total Corporate Insiders

 

205,415

 

3.1

%

700,505

 

905,920

 

12.5

%

 

 

 

 

 

 

 

 

 

 

 

 

Total Shares Outstanding (c)

 

6,562,886

 

100.0

%

 

 

6,562,886

 

90.4

%

Total Options Outstanding (d)

 

 

 

 

 

 

 

700,505

 

9.6

%

 

 

 

 

 

 

 

 

 

 

 

 

Total Fully Diluted Shares Outstanding

 

 

 

 

 

 

 

7,263,391

 

100.0

%

 

(a) Source: Fact Set, 10/19/05.

(b) Source: Company Proxy dated 4/19/05, Form 4 Filings and Option Schedule from the Company.

(c) As of 7/22/05 from Company 10-Q dated 6/30/05.

(d) Source: Company 10-K dated 12/31/05.

 

14


 

TCAM Historical and Projected Financial Summary

 

(Dollars in Millions, Except per Share)

 

 

 

Historical Fiscal Year Ended December 31,

 

LTM

 

Management Projections for
Fiscal Year Ending December 31, (a)

 

 

 

2000A

 

2001A

 

2002A

 

2003A

 

2004A

 

9/30/05

 

2005E

 

2006E

 

2007E

 

2008E

 

Income Statement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Revenues

 

$

290.6

 

$

274.6

 

$

273.2

 

$

258.9

 

$

258.4

 

$

253.9

 

$

252.8

 

$

311.9

 

$

347.4

 

$

371.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

45.7

 

37.0

 

31.3

 

27.6

 

30.4

 

29.0

 

27.3

 

41.2

 

51.3

 

58.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBIT

 

16.5

 

7.0

 

3.8

 

2.5

 

6.7

 

5.9

 

5.2

 

14.8

 

20.4

 

24.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

4.7

 

(0.4

)

(0.8

)

(1.0

)

2.2

 

1.9

 

1.6

 

6.4

 

9.1

 

11.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EPS

 

$

0.46

 

$

(0.05

)

$

(0.11

)

$

(0.15

)

$

0.31

 

$

0.29

 

$

0.25

 

$

0.98

 

$

1.39

 

$

1.67

 

Balance Sheet

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and Cash Equivalents

 

$

0.2

 

$

1.1

 

$

0.1

 

$

2.3

 

$

3.7

 

$

3.9

 

$

1.0

 

$

2.4

 

$

2.9

 

$

2.7

 

Trade Account Receivables

 

31.3

 

26.9

 

28.4

 

25.0

 

24.6

 

25.0

 

24.5

 

30.1

 

33.4

 

35.7

 

Property & Equipment, Net

 

191.0

 

169.0

 

140.5

 

124.5

 

119.8

 

121.8

 

127.1

 

163.6

 

175.1

 

183.9

 

Other Assets

 

34.1

 

34.5

 

12.9

 

13.4

 

13.0

 

12.2

 

13.0

 

15.2

 

16.6

 

17.6

 

Total Assets

 

$

256.7

 

$

231.4

 

$

181.9

 

$

165.3

 

$

161.1

 

$

162.9

 

$

165.7

 

$

211.3

 

$

227.9

 

$

239.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long Term Debt

 

$

87.3

 

$

65.2

 

$

46.5

 

$

37.8

 

$

36.3

 

$

41.1

 

$

43.6

 

$

78.3

 

$

81.6

 

$

79.4

 

Capital Leases

 

31.3

 

27.3

 

23.0

 

17.1

 

12.8

 

7.1

 

2.6

 

—

 

—

 

—

 

Other Liabilities

 

57.4

 

58.5

 

52.2

 

51.6

 

55.7

 

57.6

 

61.1

 

68.2

 

72.4

 

75.6

 

Stockholders’ Equity

 

80.7

 

80.4

 

60.2

 

58.7

 

56.3

 

57.1

 

58.4

 

64.8

 

73.9

 

84.9

 

Total Liabilities & Stockholders’ Equity

 

$

256.7

 

$

231.4

 

$

181.9

 

$

165.3

 

$

161.1

 

$

162.9

 

$

165.7

 

$

211.3

 

$

227.9

 

$

239.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures

 

$

5.7

 

$

7.1

 

$

7.6

 

$

11.3

 

$

19.0

 

$

23.6

 

$

30.1

 

$

62.9

 

$

42.3

 

$

42.8

 

 

(a) Projections per TCAM management. 2005 projections were developed on 10/13/05 and include actual YTD performance through 9/30/05. 2006 projections were developed prior to release of second quarter financials.

 

15


 

TCAM Historical and Projected Financial Summary

 

(Dollars in Millions)

 

Operating Revenue

 

EBITDA

 

 

 

[CHART]

 

[CHART]

 

 

 

EBIT

 

Net Income

 

 

 

[CHART]

 

[CHART]

 

16


 

III.   Valuation Analyses

 


 

Valuation Methodology

 

Stephens reviewed and considered the following methodologies in valuing TCAM:

 

•                  Comparable Company Analysis: Examined the trading multiples of selected publicly traded comparable companies offering services similar to TCAM.  This analysis considered the trading multiples of the truckload industry, adjusting the multiples to reflect the relative size, profitability and growth of TCAM.

 

•                  Comparable Transaction Analysis: Reviewed historical multiples paid in acquisitions of businesses similar to TCAM over the past five years. This analysis utilized the relevant transaction multiples of EBIT and EPS and applied them to TCAM’s projected values for 2005 to estimate an implied per share value for TCAM in a change of control transaction.

 

•                  Discounted Cash Flow Analysis: Derived a valuation from the present value of the free cash flows projected for TCAM over the next five years and a terminal value based on an estimated perpetual growth rate.  The discount rate for this analysis was based on the calculated weighted average cost of capital for TCAM based on available public information and adjusted for size.

 

•                  Leverage Buyout Analysis: Utilized TCAM projections for the next five years, estimated current debt capacity, utilized expected private equity returns, and assumed an exit EBIT multiple of 10.0x to derive a current valuation range.

 

•                  Premiums Analysis: Analyzed premiums paid for year-to-date transactions that ranged in size from $50 million to $500 million. Applied an applicable range of premiums from the analysis to TCAM’s current share to estimate an implied per share value in a change of control transaction.

 

18


 

Valuation Summary

 

(Dollars in Millions, Except per Share)

 

[CHART]

 

 

 

Comparable Company

 

Acquisition Multiple

 

DCF

 

LBO

 

Premium
Analysis

 

Market Price

 

 

 

LTM
EBIT

 

FY 2005
EBIT

 

FY 2005
EPS

 

FY 2005
EBIT

 

FY 2005
EPS

 

Perpetual
Growth Rate
4.0% - 5.0%

 

IRR

 

Premium

 

52 Week

 

Data:

 

$

5.9

 

$

5.2

 

$

0.25

 

$

5.2

 

$

0.25

 

Discount Rate

 

25.0% - 35.0%

 

20.0% - 30.0%

 

High / Low

 

Metric:

 

9.0x - 11.0x

 

8.0x - 10.0x

 

12.0x - 16.0x

 

9.0x - 11.0x

 

13.0x - 17.0x

 

12.0%

 

 

 

 

 

 

 

 

Note: 2005 Projections developed by management on 10/13/05 and include actual YTD performance through 9/30/05.

The DCF and LBO valuation analyses utilize projections developed by management prior to the second quarter release.

 

19


 

Comparable Companies Analysis – Truckload

 

(Dollars in Millions, Except per Share)

 

 

 

 

 

 

 

 

 

 

 

LTM Operating Ratio

 

Enterprise Value /

 

 

 

 

 

 

 

 

 

Price

 

% of 52

 

Market

 

Enterprise

 

Including

 

Excluding

 

EBITDA

 

EBIT

 

P/E

 

Company Name

 

10/25/05

 

Wk. High

 

Cap.

 

Value

 

FSC

 

FSC

 

LTM

 

2005E

 

2006E

 

LTM

 

2005E

 

2006E

 

LTM

 

2005E

 

2006E

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Celadon Group, Inc.

 

$

23.50

 

95.8

%

$

245.1

 

$

241.3

 

94.6

%

94.1

%

$

38.3

 

$

45.4

 

$

50.1

 

$

23.4

 

$

29.1

 

$

33.8

 

$

1.23

 

$

1.56

 

$

1.85

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6.3x

 

5.3x

 

4.8x

 

10.3x

 

8.3x

 

7.1x

 

19.1x

 

15.0x

 

12.7x

 

Covenant Transport

 

10.85

 

50.1

%

152.0

 

228.1

 

97.0

%

96.6

%

$

60.9

 

$

57.6

 

$

69.4

 

$

18.6

 

$

15.5

 

$

24.8

 

$

0.44

 

$

0.47

 

$

0.81

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.7x

 

4.0x

 

3.3x

 

12.3x

 

14.7x

 

9.2x

 

24.4x

 

23.1x

 

13.4x

 

Heartland Express

 

19.34

 

83.3

%

1,428.6

 

1,152.1

 

80.7

%

78.8

%

$

133.0

 

$

136.5

 

$

153.0

 

$

97.3

 

$

98.6

 

$

104.8

 

$

0.90

 

$

0.92

 

$

1.04

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8.7x

 

8.4x

 

7.5x

 

11.8x

 

11.7x

 

11.0x

 

21.6x

 

21.0x

 

18.6x

 

J.B. Hunt Transport Services

 

19.46

 

77.8

%

3,253.7

 

3,325.7

 

88.3

%

87.4

%

$

514.4

 

$

521.4

 

$

568.3

 

$

355.4

 

$

359.0

 

$

395.3

 

$

1.09

 

$

1.32

 

$

1.56

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6.5x

 

6.4x

 

5.9x

 

9.4x

 

9.3x

 

8.4x

 

17.8x

 

14.8x

 

12.5x

 

Knight Transportation

 

26.38

 

91.0

%

1,537.9

 

1,511.0

 

81.8

%

79.7

%

$

146.4

 

$

151.1

 

$

209.1

 

$

96.1

 

$

98.5

 

$

142.1

 

$

1.00

 

$

1.03

 

$

1.47

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10.3x

 

10.0x

 

7.2x

 

15.7x

 

15.3x

 

10.6x

 

26.3x

 

25.6x

 

17.9x

 

Marten Transport

 

26.10

 

97.9

%

383.9

 

418.9

 

90.6

%

89.5

%

$

77.6

 

$

78.3

 

$

88.1

 

$

41.3

 

$

40.8

 

$

45.8

 

$

1.69

 

$

1.65

 

$

1.88

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5.4x

 

5.3x

 

4.8x

 

10.2x

 

10.3x

 

9.1x

 

15.5x

 

15.8x

 

13.9x

 

P.A.M. Transportation Services

 

15.90

 

75.7

%

173.6

 

195.2

 

93.9

%

93.5

%

$

50.9

 

$

53.6

 

$

58.8

 

$

20.7

 

$

22.4

 

$

25.1

 

$

1.03

 

$

1.13

 

$

1.30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.8x

 

3.6x

 

3.3x

 

9.5x

 

8.7x

 

7.8x

 

15.5x

 

14.1x

 

12.2x

 

Swift Transportation

 

18.01

 

68.8

%

1,332.9

 

1,929.9

 

93.9

%

93.2

%

$

393.4

 

$

398.0

 

$

452.8

 

$

190.7

 

$

193.1

 

$

236.8

 

$

1.42

 

$

1.34

 

$

1.70

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4.9x

 

4.8x

 

4.3x

 

10.1x

 

10.0x

 

8.1x

 

12.7x

 

13.4x

 

10.6x

 

U.S. Xpress Enterprises

 

11.60

 

33.7

%

189.5

 

317.0

 

97.4

%

97.2

%

$

76.7

 

$

61.8

 

$

86.2

 

$

29.4

 

$

14.4

 

$

31.9

 

$

0.76

 

$

0.47

 

$

0.97

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4.1x

 

5.1x

 

3.7x

 

10.8x

 

22.0x

 

9.9x

 

15.3x

 

24.7x

 

12.0x

 

USA Truck

 

21.08

 

70.5

%

202.6

 

347.8

 

92.4

%

91.3

%

$

72.0

 

$

75.5

 

$

90.9

 

$

31.8

 

$

33.4

 

$

42.7

 

$

1.47

 

$

1.51

 

$

1.90

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4.8x

 

4.6x

 

3.8x

 

10.9x

 

10.4x

 

8.1x

 

14.4x

 

14.0x

 

11.1x

 

Werner Enterprises

 

17.44

 

75.0

%

1,422.0

 

1,401.6

 

91.7

%

90.7

%

$

316.8

 

$

317.8

 

$

337.7

 

$

158.1

 

$

154.5

 

$

164.7

 

$

1.18

 

$

1.15

 

$

1.24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4.4x

 

4.4x

 

4.2x

 

8.9x

 

9.1x

 

8.5x

 

14.7x

 

15.1x

 

14.0x

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Maximum

 

97.4

%

97.2

%

10.3x

 

10.0x

 

7.5x

 

15.7x

 

22.0x

 

11.0x

 

26.3x

 

25.6x

 

18.6x

 

 

 

Minimum

 

80.7

%

78.8

%

3.7

 

3.6

 

3.3

 

8.9

 

8.3

 

7.1

 

12.7

 

13.4

 

10.6

 

 

 

Median

 

92.4

%

91.3

%

4.9x

 

5.1x

 

4.3x

 

10.3x

 

10.3x

 

8.5x

 

15.5x

 

15.1x

 

12.7x

 

 

 

Mean

 

91.1

%

90.2

%

5.7

 

5.6

 

4.8

 

10.9

 

11.8

 

8.9

 

17.9

 

17.9

 

13.5

 

 

 

Mean (Excl. Min & Max)

 

91.6

%

90.7

%

5.4

 

5.4

 

4.7

 

10.6

 

11.1

 

8.9

 

17.6

 

17.5

 

13.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Median (Excl. CVTI, HTLD, KNX, & XPRSA)

 

92.4

%

91.3

%

4.9x

 

4.8x

 

4.3x

 

10.1x

 

9.3x

 

8.1x

 

15.5x

 

14.8x

 

12.5x

 

 

 

Mean (Excl. CVTI, HTLD, KNX, & XPRSA)

 

92.2

%

91.4

%

5.2

 

4.9

 

4.4

 

9.9

 

9.4

 

8.2

 

15.7

 

14.6

 

12.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Management Case: (a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TCAM at Market Price

 

$

8.00

 

79.8

%

$

53.5

 

$

99.1

 

97.7

%

N/A

 

$

29.0

 

$

27.3

 

$

41.2

 

$

5.9

 

$

5.2

 

$

14.8

 

$

0.29

 

$

0.25

 

$

0.98

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.4

x

3.6

x

2.4

x

16.9

x

19.1

x

6.7

x

27.4

x

32.7

x

8.2

x

TCAM at Offer Price

 

10.00

 

99.8

%

68.0

 

113.7

 

97.7

%

N/A

 

$

29.0

 

$

27.3

 

$

41.2

 

$

5.9

 

$

5.2

 

$

14.8

 

$

0.29

 

$

0.25

 

$

0.98

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.9

x

4.2

x

2.8

x

19.4

x

21.9

x

7.7

x

34.2

x

40.8

x

10.2

x

 

(a) Projections per TCAM management. 2005 projections were developed on 10/13/05 and include actual YTD performance through 9/30/05. 2006 projections were developed prior to release of second quarter financials.

 

20


 

Comparable Transaction Analysis

 

(Dollars in Millions)

 

 

 

 

 

 

 

 

 

Total

 

LTM

 

Multiples

 

Effective

 

 

 

 

 

Transaction

 

Transaction

 

 

 

 

 

 

 

Net

 

 

 

 

 

 

 

Net

 

Date

 

Target

 

Acquiror

 

Value

 

Value

 

Revenue

 

EBITDA

 

EBIT

 

Income

 

Revenue

 

EBITDA

 

EBIT

 

Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8/5/05

 

Overnite Corp.

 

United Parcel Service, Inc.

 

$

1,222.2

 

$

1,267.0

 

$

1,686.9

 

$

173.0

 

$

115.0

 

$

67.2

 

0.8x

 

7.3x

 

11.0x

 

18.2x

 

 

 

Provides regional LTL services

 

Package delivery, logistics, SCM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5/25/05

 

USF Corporation
Regional LTL, supply chain mgt.

 

Yellow Roadway Corporation
National LTL services

 

1,371.1

 

1,470.3

 

2,394.6

 

216.4

 

112.1

 

55.8

 

0.6x

 

6.8x

 

13.1x

 

24.6x

 

9/13/04

 

Boyd Bros. Transportation Inc.
Flatbed truckload carrier

 

BBT Acquisition Corporation
Investors and Management

 

27.4

 

55.3

 

139.6

 

13.4

 

3.0

 

1.0

 

0.4x

 

4.1x

 

18.1x

 

27.0x

 

2/16/04

 

Clark Bros. Transfer, Inc.
Provides LTL services

 

SCS Transportation, Inc.
Provides LTL services

 

24.5

 

30.5

 

66.0

 

5.0

 

4.0

 

N/A

 

0.5x

 

6.1x

 

7.6x

 

N/A

 

12/11/03

 

Roadway Corporation
Provides LTL services

 

Yellow Corporation
Provides LTL services

 

965.5

 

1,121.9

 

3,165.9

 

183.5

 

108.5

 

46.4

 

0.4x

 

6.1x

 

10.3x

 

20.8x

 

7/2/03

 

Merit Distribution Services
Long-haul refrig. carrier

 

Swift Transportation
Provides TL services

 

76.0

 

76.0

 

140.0

 

10.4

 

2.0

 

8.4

 

0.5x

 

7.3x

 

9.0x

 

N/A

 

2/28/03

 

Landair Corporation
Provides TL services

 

Management

 

98.2

 

101.5

 

102.5

 

18.5

 

9.0

 

5.9

 

1.0x

 

5.5x

 

11.2x

 

16.5x

 

1/23/03

 

Arnold Transportation Services
Provides TL services

 

Jefferies Capital Partners
Private equity firm

 

55.0

 

55.0

 

171.0

 

22.2

 

6.1

 

3.8

 

0.3x

 

2.5x

 

9.0x

 

14.5x

 

2/15/02

 

Motor Cargo Industries
Provides LTL services

 

Overnite Transportation Co
Provides LTL services

 

81.3

 

76.7

 

138.6

 

19.6

 

10.8

 

6.8

 

0.6x

 

3.9x

 

7.1x

 

11.9x

 

12/3/01

 

Arnold Industries

 

Roadway Corporation

 

478.0

 

430.1

 

393.8

 

68.0

 

42.0

 

29.2

 

1.1x

 

6.3x

 

10.2x

 

16.4x

 

 

 

Provides TL & LTL services

 

Provides LTL services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6/29/01

 

M.S. Carriers

 

Swift Transportation Co Inc

 

392.2

 

639.8

 

712.6

 

107.8

 

38.8

 

12.8

 

0.9x

 

5.9x

 

16.5x

 

30.7x

 

 

 

Provides TL services

 

Provides TL services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4/30/01

 

Kenan Transport Company

 

Advantage Management Group

 

87.2

 

89.2

 

157.6

 

21.2

 

12.3

 

8.9

 

0.6x

 

4.2x

 

10.0x

 

16.4x

 

 

 

Petroleum and chemical trucking

 

Petroleum-transport company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2/12/01

 

American Freightways

 

FedEx

 

946.4

 

1,208.4

 

1,352.6

 

189.3

 

126.9

 

66.3

 

0.9x

 

6.4x

 

9.5x

 

14.3x

 

 

 

Provides LTL services

 

Provides global delivery services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7/20/00

 

KLLM Transport Services, Inc.

 

High Road Acquisition Group

 

33.0

 

80.0

 

236.9

 

20.1

 

1.3

 

(1.3

)

0.3x

 

4.0x

 

N/M

 

N/M

 

 

 

Provides TL services

 

Investment company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Minimum

 

 

 

0.3x

 

2.5x

 

7.1x

 

11.9x

 

 

 

 

 

 

 

 

 

 

 

 

 

Maximum

 

 

 

1.1

 

7.3

 

18.1

 

30.7

 

 

 

 

 

 

 

 

 

 

 

 

 

Mean

 

 

 

0.6x

 

5.5x

 

11.0x

 

19.2x

 

 

 

 

 

 

 

 

 

 

 

 

 

Median

 

 

 

0.6

 

6.0

 

10.2

 

16.5

 

 

 

 

 

 

 

 

 

 

 

 

 

Mean (Excluding Min and Max)

 

0.7

 

6.1

 

11.8

 

21.1

 

TCAM at $10.00 per Share Offer Price

 

$

68.0

 

$

113.7

 

$

253.9

 

$

29.0

 

$

5.9

 

$

1.9

 

0.4x

 

3.9x

 

19.4x

 

34.2x

 

 

21


 

Discounted Cash Flow Analysis

 

(Dollars In Millions, Except per Share)

 

 

 

For the Projected Fiscal Year Ended December 31,

 

 

 

2006

 

2007

 

2008

 

2009

 

2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

$

41.2

 

$

51.3

 

$

58.2

 

$

62.7

 

$

66.6

 

Less: Depreciation and Amortization

 

(26.4

)

(30.8

)

(34.0

)

(37.5

)

(40.5

)

EBIT

 

14.8

 

20.4

 

24.2

 

25.2

 

26.2

 

Less: Taxes @ 40.0%

 

(5.9

)

(8.2

)

(9.7

)

(10.1

)

(10.5

)

Net Income Unlevered

 

8.9

 

12.3

 

14.5

 

15.1

 

15.7

 

Plus: Depreciation and Amortization

 

26.4

 

30.8

 

34.0

 

37.5

 

40.5

 

Less: Capital Expenditures

 

(62.9

)

(42.3

)

(42.8

)

(43.6

)

(44.5

)

Less: Changes in Net Working Capital

 

(0.6

)

(0.5

)

(0.1

)

(0.6

)

(1.7

)

 

 

 

 

 

 

 

 

 

 

 

 

Unlevered Free Cash Flow

 

$

(28.3

)

$

0.3

 

$

5.6

 

$

8.4

 

$

9.9

 

 

 

 

 

 

 

 

2010
EBIT

 

Assuming Discount Rates of:

 

Discounted to 12/31/05

 

 

 

 

 

Multiple (a)

 

11.0%

 

12.0%

 

13.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Present Value of Cash Flow

 

 

 

 

 

 

 

$

(9.7

)

$

(10.1

)

$

(10.4

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Terminal Growth Rate

 

 

 

3.0

%

4.3

x

$

75.9

 

$

64.5

 

$

55.5

 

2010 FCF

 

$

9.9

 

4.0

%

4.9

 

87.6

 

73.3

 

62.3

 

 

 

 

 

5.0

%

5.7

 

103.2

 

84.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Enterprise Value

 

 

 

3.0

%

 

 

$

66.2

 

$

54.4

 

$

45.1

 

 

 

 

 

4.0

%

 

 

77.9

 

63.2

 

51.9

 

 

 

 

 

5.0

%

 

 

93.4

 

74.5

 

60.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: Net Debt as of 12/31/05

 

 

 

 

 

 

 

(45.6

)

(45.6

)

(45.6

)

Plus: Option Proceeds

 

 

 

 

 

 

 

4.6

 

4.6

 

4.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity Value

 

 

 

3.0

%

 

 

$

25.1

 

$

13.4

 

$

4.1

 

 

 

 

 

4.0

%

 

 

36.8

 

22.2

 

10.9

 

 

 

 

 

5.0

%

 

 

52.4

 

33.4

 

19.3

 

Diluted Shares Outstanding

 

 

 

 

 

 

 

7.3

 

7.3

 

7.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Price Per Share

 

 

 

3.0

%

 

 

$

3.46

 

$

1.85

 

$

0.57

 

 

 

 

 

4.0

%

 

 

5.07

 

3.05

 

1.50

 

 

 

 

 

5.0

%

 

 

7.22

 

4.61

 

2.66

 

 

Note: 2006-2008 projections developed by TCAM management prior to second quarter release.

2009-2010 projections per Stephens Inc. Corporate Finance.
(a) Assumes 12.0% discount rate for the terminal value calculation.

 

22


 

Leveraged Buyout Analysis

 

Assumptions (a)

 

Term A Loan / EBITDA

 

1.5

x

Term B Loan / EBITDA

 

1.6

x

Term C Loan / EBITDA

 

0.2

 

Total Debt / EBITDA

 

3.3

x

 

 

 

 

Year 5 Equity IRR

 

25.0% - 35.0%

 

 

 

 

 

Term A Loan Spread to LIBOR

 

200 bps

 

Term B Loan Spread to LIBOR

 

200 bps

 

Term C Loan Spread to LIBOR

 

325 bps

 

 

 

 

 

Year 5 EBIT Exit Multiple

 

10.0

x

 

Results

 

 

 

Five-Year Equity IRR

 

 

 

25.0%

 

30.0%

 

35.0%

 

Price per Share

 

$

11.40

 

$

10.48

 

$

9.72

 

 

Note: 2006-2008 projections developed by TCAM management prior to second quarter release.

2009-2010 projections per Stephens Inc. Corporate Finance.
(a) Assumes transaction date of 12/31/05.

 

23


 

Premium Analysis – YTD Transactions $50-$500 million

 

Date
Announced

 

Date
Effective

 

Target Name

 

Ticker

 

Acquiror Name

 

Offer
Price

 

1 Day
Premium

 

1 Week
Premium

 

4 Weeks
Premium

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10/20/05

 

—

 

Captiva Software Corp

 

CPTV

 

EMC Corp

 

$

22.25

 

24.5

%

32.1

%

28.2

%

10/18/05

 

—

 

Roanoke Electric Steel Corp

 

RESC

 

Steel Dynamics Inc

 

21.26

 

13.8

%

20.6

%

8.0

%

10/18/05

 

—

 

Lancer Corp

 

LAN

 

Hoshizaki America Inc

 

22.00

 

10.6

%

15.8

%

15.8

%

10/12/05

 

—

 

SunLink Health Systems Inc

 

SSY

 

North Atlantic Value LLP

 

10.25

 

21.0

%

22.8

%

20.3

%

10/11/05

 

—

 

Neoforma Inc

 

NEOF

 

Global HealthCare Exchange LLC

 

10.00

 

43.7

%

31.6

%

27.6

%

10/11/05

 

—

 

Goody’s Family Clothing Inc

 

GDYS

 

Investor Group

 

8.50

 

0.8

%

11.1

%

14.2

%

10/10/05

 

—

 

Micro Therapeutics Inc

 

MTIX

 

ev3 Inc

 

7.90

 

33.0

%

40.8

%

31.7

%

10/10/05

 

—

 

Goody’s Family Clothing Inc

 

GDYS

 

Sun Capital Partners Inc

 

8.00

 

10.2

%

7.0

%

10.0

%

10/5/05

 

—

 

Centra Software Inc

 

CTRA

 

Saba Software Inc

 

2.03

 

0.5

%

7.4

%

4.6

%

10/4/05

 

—

 

Fox & Hound Restaurant Group

 

TENT

 

Levine Leichtman Capital

 

14.00

 

36.2

%

29.5

%

22.2

%

10/3/05

 

—

 

Bindview Development Corp

 

BVEW

 

Symantec Corp

 

4.00

 

14.3

%

14.3

%

15.6

%

9/30/05

 

—

 

Cavalry Bancorp Inc,Murfreesbo

 

CAVB

 

Pinnacle Financial Partners,TN

 

23.89

 

21.9

%

16.6

%

20.9

%

9/30/05

 

—

 

Specialty Laboratories Inc

 

SP

 

AmeriPath Inc

 

13.25

 

1.6

%

6.4

%

1.7

%

9/27/05

 

—

 

Party City Corp

 

PCTY

 

AAH Holdings Corp

 

17.50

 

42.5

%

33.8

%

32.6

%

9/27/05

 

—

 

New Valley Corp

 

NVAL

 

Vector Group Ltd

 

9.01

 

20.9

%

20.1

%

22.6

%

9/23/05

 

—

 

Intermix Media Inc

 

MIX

 

FreeMySpace LLC

 

13.50

 

13.4

%

13.5

%

13.7

%

9/19/05

 

—

 

Peregrine Systems Inc

 

PRGN

 

Hewlett-Packard Co

 

26.08

 

36.5

%

35.1

%

33.1

%

9/19/05

 

—

 

Integrity Financial Corp,NC

 

IFCB

 

FNB Corp,Asheboro,NC

 

23.52

 

17.6

%

17.6

%

13.9

%

9/13/05

 

—

 

Image Entertainment Inc

 

DISK

 

Lions Gate Entertainment Corp

 

4.39

 

49.3

%

62.6

%

45.9

%

9/12/05

 

—

 

NorthStar Financial Corp,WA

 

NHST

 

Frontier Finl Corp,Everett,WA

 

52.60

 

63.4

%

59.4

%

59.4

%

9/12/05

 

—

 

WFS Financial Inc

 

WFSI

 

Wachovia Corp,Charlotte,NC

 

73.86

 

13.8

%

11.5

%

28.2

%

9/12/05

 

—

 

AmNet Mortgage,San Diego,CA

 

INV

 

Wachovia Corp,Charlotte,NC

 

10.30

 

9.7

%

2.9

%

3.5

%

9/9/05

 

—

 

PalmSource Inc

 

PSRC

 

Access Co Ltd

 

18.50

 

83.4

%

72.9

%

140.9

%

9/9/05

 

—

 

Hector Communications Corp

 

HCT

 

Opportunity Partners LP

 

26.50

 

0.0

%

1.4

%

2.9

%

9/6/05

 

—

 

Nittany Financial Corp,PA

 

NTNY

 

National Penn Bancshares,PA

 

42.43

 

21.2

%

23.9

%

28.6

%

8/31/05

 

—

 

Haggar Corp

 

HGGR

 

Investor Group

 

29.00

 

27.8

%

28.4

%

32.9

%

8/30/05

 

—

 

IWO Holdings Inc

 

IWHD

 

Sprint Nextel Corp

 

42.50

 

18.9

%

8.8

%

8.3

%

8/29/05

 

—

 

Action Performance Cos Inc

 

ATN

 

Motorsports Authentics Inc

 

13.00

 

5.9

%

16.1

%

27.5

%

8/22/05

 

—

 

Plumtree Software Inc

 

PLUM

 

BEA Systems Inc

 

5.50

 

17.8

%

27.9

%

48.3

%

8/18/05

 

—

 

Brooktrout Inc

 

BRKT

 

EAS Group Inc

 

13.05

 

38.1

%

39.3

%

16.2

%

8/18/05

 

—

 

CyberGuard Corp

 

CGFW

 

Secure Computing Corp

 

8.82

 

12.2

%

13.1

%

24.2

%

8/18/05

 

—

 

Parlex Corp

 

PRLX

 

Johnson Electric Holdings Ltd

 

6.75

 

4.7

%

9.8

%

12.9

%

8/10/05

 

9/30/05

 

Fastclick Inc

 

FSTC

 

Valueclick Inc

 

10.28

 

16.3

%

10.6

%

18.9

%

8/9/05

 

—

 

Register.com Inc

 

RCOM

 

Vector Capital

 

7.81

 

7.6

%

9.2

%

24.0

%

8/3/05

 

—

 

E-Loan Inc

 

EELN

 

Popular Inc,Hato Rey,PR

 

4.25

 

37.5

%

35.8

%

22.5

%

8/3/05

 

—

 

Chart Industries Inc

 

CIDI

 

First Reserve Corp

 

65.74

 

10.5

%

14.3

%

19.5

%

 

Source: Thomson One Banker.

 

24


 

Date
Announced

 

Date
Effective

 

Target Name

 

Ticker

 

Acquiror Name

 

Offer
Price

 

1 Day
Premium

 

1 Week
Premium

 

4 Weeks
Premium

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8/3/05

 

9/29/05

 

Epiphany Inc

 

EPNY

 

SSA Global Technologies Inc

 

4.20

 

7.7

%

11.1

%

21.4

%

8/1/05

 

—

 

Long Island Financial Corp,NY

 

LICB

 

New York Community Bancorp,NY

 

42.60

 

25.2

%

26.8

%

34.8

%

7/29/05

 

—

 

PRG Schultz Intl Inc

 

PRGX

 

Cannell Capital Management

 

3.43

 

18.7

%

21.6

%

21.6

%

7/27/05

 

—

 

First Natl Bancshares Inc,FL

 

FBMT

 

Whitney Holding Corp,LO

 

34.64

 

31.8

%

41.4

%

32.0

%

7/26/05

 

—

 

National Vision Inc

 

NVI

 

Berkshire Partners LLC

 

7.25

 

42.2

%

43.6

%

45.0

%

7/26/05

 

—

 

Columbia Bancorp,Columbia,MD

 

CBMD

 

Fulton Finl Corp,Lancaster,PA

 

42.85

 

16.9

%

17.3

%

15.9

%

7/25/05

 

—

 

BioSource International Inc

 

BIOI

 

Invitrogen Corp

 

12.50

 

10.3

%

10.8

%

18.6

%

7/20/05

 

—

 

Guilford Pharmaceuticals Inc

 

GLFD

 

MGI PHARMA Inc

 

3.75

 

59.6

%

66.7

%

42.6

%

7/11/05

 

—

 

Helix Technology Corp

 

HELX

 

Brooks Automation Inc

 

17.31

 

24.6

%

32.7

%

27.6

%

7/8/05

 

—

 

Cruzan International Inc

 

RUM

 

Absolut Spirits Co Inc

 

28.37

 

12.5

%

9.1

%

8.7

%

7/7/05

 

—

 

Paradyne Networks Inc

 

PDYN

 

Zhone Technologies Inc

 

3.58

 

101.0

%

97.6

%

90.3

%

7/1/05

 

7/14/05

 

Tipperary Corp

 

TPY

 

Santos Ltd

 

7.41

 

18.2

%

15.5

%

35.6

%

6/30/05

 

—

 

EFC Bancorp Inc,Elgin,Illinois

 

EFC

 

MAF Bancorp,Clarendon Hills,IL

 

35.16

 

18.4

%

19.6

%

29.7

%

6/29/05

 

—

 

1st State Bancorp Inc,NC

 

FSBC

 

Capital Bank Corp,Raleigh,NC

 

37.15

 

6.6

%

4.5

%

23.8

%

6/27/05

 

—

 

SeeBeyond Technology Corp

 

SBYN

 

Sun Microsys Inc

 

4.25

 

34.1

%

33.7

%

39.3

%

6/20/05

 

—

 

Genaissance Pharmaceuticals

 

GNSC

 

Clinical Data Inc

 

1.31

 

44.3

%

45.9

%

45.9

%

6/14/05

 

—

 

CNB Bancorp,Gloversville,NY

 

CNBI

 

NBT Bancorp Inc,Norwich,NY

 

38.69

 

44.6

%

38.2

%

51.4

%

6/9/05

 

7/29/05

 

Niku Corp

 

NIKU

 

Computer Assoc Intl Inc

 

21.00

 

27.3

%

33.3

%

75.0

%

6/8/05

 

—

 

Boston Acoustics Inc

 

BOSA

 

D&M Holdings Inc

 

17.50

 

7.7

%

17.0

%

20.7

%

6/2/05

 

—

 

Cruzan International Inc

 

RUM

 

V & S Vin & Sprit AB

 

28.37

 

102.8

%

103.5

%

101.9

%

6/1/05

 

—

 

Saucony Inc

 

SCNYA

 

Stride Rite Corp

 

23.00

 

14.8

%

16.8

%

17.5

%

5/20/05

 

—

 

Imperial Sugar Co

 

IPSU

 

Schultze Asset Management LLC

 

17.00

 

31.5

%

38.8

%

23.0

%

5/10/05

 

7/14/05

 

Oshkosh B Gosh Inc

 

GOSHA

 

Carters Inc

 

26.00

 

-11.5

%

4.9

%

-17.6

%

5/9/05

 

—

 

Nuance Communications Inc

 

NUAN

 

ScanSoft Inc

 

5.63

 

84.6

%

97.5

%

114.1

%

5/6/05

 

—

 

Juno Lighting Inc

 

JUNO

 

Abrams Capital LLC

 

40.00

 

19.4

%

11.1

%

6.9

%

4/29/05

 

—

 

Corixa Corp

 

CRXA

 

GlaxoSmithKline PLC

 

4.40

 

47.7

%

48.7

%

51.7

%

4/28/05

 

—

 

First American Bank,CA

 

FTAB

 

First Community Bancorp Inc,CA

 

24.95

 

24.8

%

30.0

%

21.7

%

4/26/05

 

—

 

William Lyon Homes

 

WLS

 

General William Lyon

 

82.00

 

10.2

%

9.9

%

7.7

%

4/19/05

 

6/27/05

 

Orphan Medical Inc

 

ORPH

 

Jazz Pharmaceuticals Inc

 

10.75

 

25.7

%

23.3

%

14.9

%

4/15/05

 

—

 

Brookstone Inc

 

BKST

 

OSIM Brookstone Holdings LP

 

20.50

 

28.2

%

21.8

%

40.8

%

4/14/05

 

—

 

Rubicon Medical Corp

 

RMDC

 

Boston Scientific Corp

 

1.50

 

-.7

%

0.7

%

26.1

%

4/12/05

 

—

 

Noland Co

 

NOLD

 

Primus Inc

 

74.00

 

52.3

%

60.4

%

49.0

%

4/7/05

 

6/8/05

 

Concord Communications Inc

 

CCRD

 

Computer Assoc Intl Inc

 

17.00

 

71.0

%

68.0

%

73.3

%

4/4/05

 

5/20/05

 

Maxcor Financial Group Inc

 

MAXF

 

BGC Partners LP

 

14.00

 

46.4

%

56.1

%

57.0

%

3/28/05

 

5/6/05

 

Digital Impact Inc

 

DIGI

 

Acxiom Corp

 

3.50

 

52.8

%

75.9

%

75.0

%

3/21/05

 

—

 

State Finl Svcs Corp,WI

 

SFSW

 

Associated Banc,Green Bay,WI

 

38.22

 

26.6

%

23.3

%

27.7

%

3/17/05

 

7/1/05

 

Horizon PCS Inc

 

HZPS

 

IPCS Inc

 

23.58

 

-5.7

%

-5.7

%

-1.8

%

 

Source: Thomson One Banker.

 

25


 

Date
Announced

 

Date
Effective

 

Target Name

 

Ticker

 

Acquiror Name

 

Offer
Price

 

1 Day
Premium

 

1 Week
Premium

 

4 Weeks
Premium

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3/15/05

 

—

 

Medicore Inc

 

MDKI

 

Dialysis Corp of America

 

19.54

 

110.7

%

115.9

%

127.7

%

3/9/05

 

7/1/05

 

Thomas Industries Inc

 

TII

 

Gardner Denver Inc

 

40.00

 

0.2

%

1.5

%

2.7

%

3/7/05

 

—

 

Summit Financial Corp,SC

 

SUMM

 

First Citizens Bancorp Inc,SC

 

22.00

 

-5.6

%

-2.0

%

0.2

%

3/4/05

 

6/3/05

 

Closure Medical Corp

 

CLSR

 

Johnson & Johnson Inc

 

27.00

 

20.5

%

22.7

%

33.1

%

2/28/05

 

8/3/05

 

NCRIC Group Inc

 

NCRI

 

ProAssurance Corp

 

10.10

 

-7.7

%

-8.7

%

-12.2

%

2/28/05

 

—

 

Quinton Cardiology Systems Inc

 

QUIN

 

Cardiac Science Inc

 

14.59

 

46.8

%

41.6

%

51.8

%

2/28/05

 

8/1/05

 

First Bancshares Inc,CA

 

FSLO

 

Pacific Capital Bancorp,CA

 

48.00

 

50.5

%

45.5

%

39.1

%

2/22/05

 

5/25/05

 

Insurance Auto Auctions Inc

 

IAAI

 

Kelso & Co

 

28.25

 

24.5

%

24.4

%

29.5

%

2/15/05

 

3/21/05

 

Tickets.com Inc

 

TIXX

 

MLB Advanced Media LP

 

1.10

 

32.5

%

29.4

%

46.7

%

2/15/05

 

4/8/05

 

AMX Corp

 

AMXC

 

Duchossois Industries Inc

 

22.50

 

5.4

%

21.6

%

35.4

%

2/8/05

 

—

 

August Technology Corp

 

AUGT

 

KLA-Tencor Corp

 

11.50

 

11.2

%

18.0

%

42.7

%

1/27/05

 

4/19/05

 

MAPICS Inc

 

MAPX

 

Infor Global Solutions

 

12.75

 

9.7

%

14.3

%

24.0

%

1/27/05

 

4/21/05

 

Genencor International Inc

 

GCOR

 

Danisco A/S

 

19.25

 

23.9

%

22.4

%

15.8

%

1/25/05

 

3/16/05

 

Corio Inc

 

CRIO

 

IBM Corp

 

2.82

 

37.6

%

34.3

%

51.6

%

1/25/05

 

—

 

AlphaSmart Inc

 

ALSM

 

Renaissance Learning Inc

 

3.75

 

27.1

%

26.3

%

26.3

%

1/21/05

 

—

 

August Technology Corp

 

AUGT

 

Nanometrics Inc

 

8.39

 

-8.4

%

-8.2

%

-18.7

%

1/20/05

 

3/3/05

 

Falcon Financial Investment

 

FLCN

 

iStar Financial Inc

 

7.50

 

11.1

%

13.6

%

10.1

%

1/20/05

 

—

 

Chester Valley Bancorp,PA

 

CVAL

 

Willow Grove Bancorp Inc,PA

 

27.90

 

28.2

%

26.8

%

29.8

%

1/18/05

 

6/1/05

 

Computer Network Technology

 

CMNT

 

McDATA Corp

 

5.53

 

-16.5

%

-4.7

%

-16.3

%

1/18/05

 

4/4/05

 

Impac Medical Systems Inc

 

IMPC

 

Elekta AB

 

24.00

 

32.4

%

32.4

%

32.4

%

1/18/05

 

—

 

FFLC Bancorp,Leesburg,FL

 

FFLC

 

Colonial BancGroup Inc,AL

 

42.00

 

19.9

%

19.8

%

20.3

%

1/17/05

 

5/25/05

 

Penn Engr & Mnfr Corp

 

PNN

 

PEM Holding Co

 

18.25

 

22.7

%

21.7

%

17.0

%

1/12/05

 

4/7/05

 

Verisity Ltd

 

VRST

 

Cadence Design Systems Inc

 

12.00

 

60.2

%

57.1

%

45.5

%

1/11/05

 

7/1/05

 

SVB Financial Services Inc,NJ

 

SVBF

 

Fulton Finl Corp,Lancaster,PA

 

21.27

 

-3.3

%

4.5

%

3.6

%

1/7/05

 

4/1/05

 

Vastera Inc

 

VAST

 

JPMorgan Chase Bank

 

3.00

 

50.0

%

14.1

%

28.2

%

1/7/05

 

4/27/05

 

Polaroid Holding Co

 

POHC

 

Petters Group Worldwide

 

12.08

 

13.4

%

14.4

%

16.7

%

1/4/05

 

2/7/05

 

Total Logistics Inc

 

TLCX

 

SuperValu Inc

 

28.50

 

7.7

%

5.8

%

3.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mean

 

26.1

%

27.1

%

29.9

%

 

 

 

 

 

 

 

 

 

 

Median

 

21.0

%

21.7

%

24.2

%

 

Source: Thomson One Banker.

 

26