Summary

Other Scenarios:

Buyer: AT&T Inc. (T) Last Price: 25.70 Market Cap.: 151.63B
Target: Centennial Communications Corp. (CYCL) Last Price: 8.39 Market Cap.: 932.64M

Lines of Business Summary:

Product Summary:

Overlap & Complementary Sectors

Sector Buyer Target # of Focused Companies
Business and Public Services 615
Business Services   214
Telecommunications Services 148
Consumer   906
Media   135
Technology   897
Information Technology (IT) Services   128
Software   255

- Focused. Denotes that the company is considered focused in this area. In general, Focused Companies draw the majority of their earnings in the sector/product area specified.

- Sector Pure-Plays. Denotes that the company is focused in the selected sector and generates nearly all earnings in the sector/product area specified.

- Sector Participation. Denotes that the company develops products in this line of business.

Sample Products in Similar Lines of Business

Sample Products in Complementary Lines of Business
Buyer (Total: 183)
  • AT&T U-Verse
  • AT&T Homezone
  • Residential - TV - Digital Satellite TV
  • Residential - TV - DISH Network
Target (Total: 2)
  • Centennial Wireless
  • Centennial Blue Nation
Buyer
  • AT&T Interactive
  • Ingenio Pay Per Call
  • AnyWho.com
  • YellowPages.com
Target

n/a

Business Relationship Summary:

Top Key Suppliers

Top Key Customers
Buyer (Total: 128)
  • Synchronoss Technologies, Inc. (SNCR)
  • StarTek, Inc. (SRT)
  • ATC Technology Corp. (ATAC)
  • FiberTower Corp. (FTWR)
Target (Total: 13)
  • AT&T Inc. (T)
  • Deutsche Telekom AG (ADR) (DT)
  • Nokia Corporation (ADR) (NOK)
  • Telefonaktiebolaget LM Ericsson (ADR) (ERIC)
Buyer (Total: 54)
  • Royal Dutch Shell plc (ADR) (RDS/A)
  • Citigroup Inc. (C)
  • Lockheed Martin Corporation (LMT)
  • Sony Corporation (ADR) (SNE)
Target (Total: 14)
  • Wal-Mart Stores, Inc. (WMT)
  • The Procter & Gamble Company (PG)
  • AT&T Inc. (T)
  • Cisco Systems, Inc. (CSCO)

Key Financial Summary:

Key Metrics

  Buyer Target
Number of Employees 288,660 2,900
Revenue Per Employee 407,301.1 358,117.7
Total Revenue 30,734.0 258.9
Total Expenses 25,228.0 186.6
Other Revenue 3,000.0 0.0
Cost of Revenue 12,478.0 83.2
SG&A Expense 7,847.0 71.6
Research & Development 0.0 0.0
Other Operating Expense 0.0 0.1
Operating Income 5,506.0 72.3
Unusual Income 0.0 0.0
LT Debt to Capital 40.3 212.65
Fwd P/E 12.52 16.45
Fwd P/Rev 1.24 0.88
Book Value 98,609.0 -927.3
Curr Portion of LTD/Cap Lease 10,155.0 275.0

Individual Company Summary

Focused

Buyer

Focused (): Business and Public Services > Telecommunications Services > Wireline Services > Domestic

Target

Sector Pure-Play (): Business and Public Services > Telecommunications Services > Wireless Services > Domestic > Mobile Telephony Services > Voice Services > Regional Carriers

Revenue/Earnings Summary

Buyer
Fiscal Year:
Quarter:
2009
*  Dec
2008
Dec
2007
Dec
Q1
Rev. (M)
EPS
30,571.0
0.53
30,744.0
0.57
28,969.0
0.45
Q2
Rev. (M)
EPS
30,734.0
0.54
30,866.0
0.63
58,447.0
0.92
Q3
Rev. (M)
EPS
*  30,856.1
0.50
31,342.0
0.55
30,132.0
0.50
Q4
Rev. (M)
EPS
*  30,842.9
0.50
31,076.0
0.41
30,349.0
0.51
FY
Rev. (M)
EPS
*  123,103.5
2.07
124,028.0
2.16
118,928.0
1.94
*  - Estimates
Target
Fiscal Year:
Quarter:
2010
*  May
2009
May
2008
May
2007
May
Q1
Rev. (M)
EPS
258.9
0.17
265.2
0.07
248.0
0.05
225.4
-0.02
Q2
Rev. (M)
EPS
*  264.0
0.13
261.9
0.03
243.6
0.01
229.2
-0.31
Q3
Rev. (M)
EPS
*  262.8
0.11
262.7
0.17
251.2
0.05
229.1
-0.01
Q4
Rev. (M)
EPS
*  264.8
 
261.8
0.33
258.7
0.12
228.2
0.05
FY
Rev. (M)
EPS
*  1,055.1
0.51
1,051.6
0.61
1,001.4
0.23
911.9
-0.29
*  - Estimates

Business Description

Buyer

AT&T Inc. (AT&T) is a communications holding company. Its subsidiaries and affiliates, AT&T operating companies, are the providers of AT&T services in the United States and around the world. Their offerings include Internet protocol (IP)-based business communications services, third generation (3G) network and wireless coverage worldwide, and Internet access and voice services. Its offerings also include directory publishing and advertising sales of its Yellow Pages and YELLOWPAGES.COM organizations. The Company operates in four business segments: wireless, wireline, advertising solutions and other. In September 2009, the Company acquired Plusmo, Inc., a provider of cross-platform mobile application solutions. In October 2009, the Company announced the acquisition of VeriSign's global security consulting business.

Target

Centennial Communications Corp. (Centennial) is a regional wireless and broadband telecommunications service provider serving approximately 1.1 million wireless customers and approximately 694,900 access line equivalents in markets covering over 13 million Net Pops in the United States and Puerto Rico. In the United States, the Company is a regional wireless service provider in small cities and rural areas in two geographic clusters covering parts of six states in the midwest and southeast. In Puerto Rico, Centennial is a communications service provider offering broadband communications services to business and, to a lesser extent, residential customers. The wholly owned subsidiary of the Company is Centennial Cellular Operating Co. LLC (CCOC). As of May 31, 2009, the Company had 1,078,200 wireless subscribers.

Deal Summary

Scenario 1:
Buyer's Share Price: 25.70; Target's Share Price: 8.39; Deal: 100.00%/0.00%/0.00%; Cost of Cash/Debt: 5.00%/6.00%; Years to Amortize Acquired Intangibles: 7;
Scenario 2:
Buyer's Share Price: 25.70; Target's Share Price: 9.23; Deal: 100.00%/0.00%/0.00%; Cost of Cash/Debt: 5.00%/6.00%; Years to Amortize Acquired Intangibles: 7;
Scenario 3:
Buyer's Share Price: 25.70; Target's Share Price: 10.07; Deal: 100.00%/0.00%/0.00%; Cost of Cash/Debt: 5.00%/6.00%; Years to Amortize Acquired Intangibles: 7;
Scenario 4:
Buyer's Share Price: 25.70; Target's Share Price: 10.91; Deal: 100.00%/0.00%/0.00%; Cost of Cash/Debt: 5.00%/6.00%; Years to Amortize Acquired Intangibles: 7;

Deal Scenarios Analytics

  Scenario 1 Scenario 2 Scenario 3 Scenario 4
Financial Analysis
Financing Value 939.72M 1.03B 1.13B 1.22B
Required for deal
Stock 939.72M 1.03B 1.13B 1.22B
Cash 0 0 0 0
Debt 0 0 0 0
Shares
New Shares to be Issued 36.57M 40.22M 43.88M 47.53M
New Shares Outstanding F.D 5.96B 5.96B 5.97B 5.97B
Taxes
New Tax Rate 0.35 0.35 0.35 0.35
EPS
Old FD EPS 2.02 2.02 2.02 2.02
New FD EPS 2.02 2.02 2.02 2.01
Goodwill and Synergy
Goodwill/Intangibles 1.87B 1.96B 2.05B 2.15B
Total Synergy Required for Accretion 5.43M 16.72M 28.02M 39.31M
Pro Forma % Ownership
Buyer's 99.39% 99.33% 99.26% 99.20%
Seller's 0.61% 0.67% 0.74% 0.80%
Accretion/Dilution
Per Share -0.00 -0.00 -0.00 -0.00
% Change -0.03% -0.09% -0.15% -0.21%
Total Consideration
Cash as % of Total Consideration to increase $0.01 EPS        
Synergy to increase $0.01 EPS 91.18M 91.23M 91.29M 91.35M

Key Ratios

  Buyer Target Scenario 1 Scenario 2 Scenario 3 Scenario 4
Gross Margin % 59.01 68.06 59.09 59.09 59.09 59.09
Operating Margin % 17.59 26.49 17.66 17.66 17.66 17.66
Quick Ratio 0.61 0.78 0.61 0.61 0.61 0.61
Current Ratio 0.74 0.89 0.75 0.75 0.75 0.75
Coverage Ratio -0.12 -0.61 0.13 0.13 0.13 0.13
Total Assets 267,918.0 1,480.9 269,398.9 269,398.9 269,398.9 269,398.9
Return on Equity % 12.28 n/a 12.31 12.31 12.31 12.31
Return on Assets % 4.52 5.46 4.52 4.52 4.52 4.52
Cash+ ST Inv. Per Share 1.24 2.21 1.27 1.27 1.27 1.27
Total Debt 76,720.0 2,025.5 68,315.5 68,315.5 68,315.5 68,315.5
Total Debt to Equity % 77.8 0 69.94 69.94 69.94 69.94
Total Debt to Tangible Equity % n/a n/a -176.24 -176.24 -176.24 -176.24
Debt to Asset % 28.64 136.78 25.36 25.36 25.36 25.36

Product Details

Sector Buyer Target
Business and Public Services
Business Services  
Professional Services
Includes accounting, advertising, consulting, legal, and printing services.
  
Telecommunications Services
Satellite Services
Communications service provided over a satellite network that is used for data uplink/downlink, video broadcast, data transport, telephone, and internet access services.
  
Telecommunications Relay Service
An operator-facilitated service that assist people who are hearing impaired in making calls to standard telephone users.

Buyer Products:

  • AT&T Video Relay Service
  • AT&T Relay Services
  
Wireless Services
Any terrestrial-based communications transmission which can be received through microwave or radio frequencies without the use of a cable connection for reception.
Wireline Services
Communications service which requires a physical connection to transport voice, video, and data.
  
Consumer  
Media  
Electronic Media
The Electronic Media sector focuses on content delivered electronically, primarily over the Internet, and comprises both online publishing intended for end users, and services providing data feeds for other electronic publishers and Web sites. (The online presences of companies delivering content primarily via Television, Radio, and Print are generally not included.) Does not include trade name delivered via mobile devices, if this content is also offered primarily via the internet.
  
Print
The Print sector is comprised of companies engaged in the business of print circulation, including books, classified publications, directories, magazines, newspapers, shoppers, and trade journals.
  
Technology  
Information Technology (IT) Services  
Enterprise and Technology Consulting
Information technology related to consulting services designed to improve a client company's operating efficiency, and business capabilities through the expert application of information technology resources and best practices. These services can be delivered on a project-by-project basis, or via an on-going relationship.
  
Internet/Online Services
The Internet/Online Services subsector is comprised primarily of outsourced services that help companies do business or establish a presence on the Internet. The sector includes services such as website development, Internet strategy consulting, ecommerce, marketing, security, and hosting.
  
Software  
Enterprise Management
Software designed to maximize the efficiency and productivity with which the enterprise is run. Includes Customer Relationship Management (CRM) and Enterprise Resource Planning (ERP) software.
  
Home/Office
Personal productivity and entertainment software targeted toward consumer and business users.
  
IT Infrastructure
Software, employed typically by the IT department of an enterprise, which ensures that computer based systems perform efficiently and securely.
  
Industry-Specific
Software that has functionality specific to a vertical industry.
  

- Focused. Denotes that the company is considered focused in this area. In general, Focused Companies draw the majority of their earnings in the sector/product area specified.

- Sector Pure-Plays. Denotes that the company is focused in the selected sector and generates nearly all earnings in the sector/product area specified.

- Sector Participation. Denotes that the company develops products in this line of business.

Product Details

Sector Buyer Target
Business and Public Services
Business Services  
Professional Services  
Marketing Communications and Advertising Services  
Marketing Specialists  
Digital/Interactive Marketing Agencies
Full-service agencies which provide a complete range of digital/interactive marketing services (brand and marketing strategy, creative work, Web design and development, media expertise, etc.).

Buyer Products:

  • AT&T Interactive
  
Direct Marketing
Companies which offer promotional selling services through mail, e-mail, and phone, targeted individually to the prospective customer. Membership rewards programs are also included at this level.

Buyer Products:

  • Ingenio Pay Per Call
  
Telecommunications Services
Satellite Services  
Fixed  
Domestic  
Direct to Home Service (DTH)
Video and data content delivered to consumers homes. DTH Operator uplinks programming content to satellites, allowing it to be transmitted to DTH subscribers homes. Also known as Direct Broadcast Service (DBS).

Buyer Products:

  • AT&T U-Verse
  • AT&T Homezone
  • Residential - TV - Digital Satellite TV
  • Residential - TV - DISH Network
  
Telecommunications Relay Service
An operator-facilitated service that assist people who are hearing impaired in making calls to standard telephone users.

Buyer Products:

  • AT&T Video Relay Service
  • AT&T Relay Services
  
Wireless Services
Domestic
Carrier Services  
Enhanced Services
Services offered to wireless carriers, to provide their customers with enhanced services, including directory assistance and other connectivity features.

Buyer Products:

  • SBC Directory Services
  
Data Services  
Internet Service Provider  
East
Region comprising the following states: CT, DE, MA, MD, ME, NH, NJ, NY, PA, RI, VA, VT, WV

Buyer Products:

  • Enterprise - Enterprise Mobility - Remote Access
  • SBC FreedomLink
  • Residential - Wireless
  
Midwest
Region comprising the following states: IA, IL, IN, MI, MN, ND, NE, OH, SD, WI

Buyer Products:

  • Residential - Wireless
  • Enterprise - Enterprise Mobility - Remote Access
  • SBC FreedomLink
  
South
Region comprising the following states: AL, AR, FL, GA, KS, KY, LA, MO, MS, NC, OK, SC, TN, TX

Buyer Products:

  • Enterprise - Enterprise Mobility - Remote Access
  • Residential - Wireless
  • SBC FreedomLink
  
West
Region comprising the following states: AK, AZ, CA, CO, HI, ID, MT, NM, NV, OR, UT, WA and WY

Buyer Products:

  • Enterprise - Enterprise Mobility - Remote Access
  • SBC FreedomLink
  • Residential - Wireless
  
Wireless Network
Service providing wireless data network connectivity.

Buyer Products:

  • AT&T Wireless
  • AT&T Wireless Data Services
  • Wayport WAYPORT HotSpot
  • Residential - Wireless
  • SBC PremierSERV Wireless LAN
  
Mobile Telephony Services
Paging/Messaging Services
Wireless paging or messaging services, such as wireless e-mail.

Buyer Products:

  • American Messaging
  • AT&T Wireless Data Services
  • Enterprise - Collaboration - Messaging
  • AT&T Wireless
  
Voice Services
National Carriers
Wireless Voice Carriers which provide service throughout the US.

Buyer Products:

  • AT&T Wireless
  • AT&T Unity
  • AT&T Nation
  • AT&T Wireless Data Services
  
Regional Carriers
Caribbean Territories
Puerto Rico and/or US Virgin Islands.

Target Products:

  • Centennial Wireless
  • Centennial Blue Nation
  
Midwest
Region comprising the following states: IA, IL, IN, MI, MN, ND, NE, OH, SD, WI

Target Products:

  • Centennial Blue Nation
  • Centennial Wireless
  
South
Region comprising the following states: AL, AR, FL, GA, KS, KY, LA, MO, MS, NC, OK, SC, TN, TX

Target Products:

  • Centennial Blue Nation
  • Centennial Wireless
  
West
Region comprising the following states: AK, AZ, CA, CO, HI, ID, MT, NM, NV, OR, UT, WA, and WY

Buyer Products:

  • Edge Wireless Consumer Services
  • Edge Wireless Business Services
  
Wireline Services  
Domestic  
Converged Voice/Data Services  
Audio/Video Conferencing
Service which enables several users to meet from remote locations, using audio, video, web/based presentations, or a combination of all three.

Buyer Products:

  • Enterprise - Collaboration - Conferencing - Video Conferencing
  • Enterprise - Collaboration - Conferencing - Web Conferencing
  • Broadcast Video Services
  • AT&T Connect
  • BellSouth Conferencing Services
  • 1-800-CONFERENCE
  • Enterprise - Collaboration - Conferencing - Audio Conferencing
  
Integrated Communications Network (ICN)
Communications service that uses a fully-integrated broadband network infrastructure to provide voice, data, multimedia, and Internet communications services over a single connection.

Buyer Products:

  • Enterprise - Data/Managed Data Services - Integrated Network Connection Services
  • BellSouth Primary Rate ISDN
  • SBC PremierSERV Total IP Communication
  • SBC PremierSERV T1 Integrated Access Solutions
  
Data Services  
Internet Service Providers (ISP)  
DSL
Digital Subscriber Line. Accessed via a phone line, but which, in most cases, allows calls to be made using the same phone line while connected to the internet. While speeds are dependant on the distance of the connection to the providers central office, speeds are typically far greater than Dial-Up, and range from 1.5 Mbps upwards.

Buyer Products:

  • Enterprise - IP and IP VPN - DSL
  • Residential - Internet - DSL
  • Business - Internet Services - AT&T DSL Internet Service
  • Enterprise - Access and Local Services - Fast Access Business DSL
  • Symmetric DSL Internet Services
  • BellSouth Internet Services
  • Enterprise - Access and Local Services - DSL
  • SBC Yahoo! DSL
  
Dial-up
Internet service provided over an analog modem. Speeds are limited to 56 Kbps.

Buyer Products:

  • Residential - Internet - Dialup
  • SBC Yahoo! Dial
  • BellSouth Internet Services
  
ISDN Dedicated
Integrated Services Digital Network. Type of digital service accessed over an analog phone line. Similar to DSL, in that the phone line can be used to make and receive calls while remaining connected to the internet. Speeds are limited to 128 Kbps.

Buyer Products:

  • Enterprise - Data/Managed Data Services - Managed Internet Services
  • ISDN Primary Rate Interface (PRI)
  • BellSouth Internet Services
  • Enterprise - Access and Local Services - ISDN
  • AT&T Yahoo! High Speed Internet
  • Enterprise - Access and Local Services - Managed Internet Services
  • ISDN Direct
  
T1 Dedicated
Digital service targeted toward businesses using a dedicated line. Speeds start at 1.5 Mbps (T1) , and go as high as 2.488 Gbps (OC-48).

Buyer Products:

  • Enterprise - Data/Managed Data Services - Managed Internet Services
  • Enterprise - Access and Local Services - Managed Internet Services
  • BellSouth Internet Services
  • SBC PremierSERV Dedicated Internet Access
  
Transport Services  
Call Management/Routing Services
Service provided to telecommunications companies which includes Call Management; SS7 Connectivity (Caller ID, Call forwarding services); and Subscriber Management Services.

Buyer Products:

  • Enterprise - Wholesale - Voice Networking - SS7
  
Data Transport
Service provided to business and other organizations which require dedicated connections to local and wide area networks. Includes ATM, Frame Relay, SONET, Ethernet, Private Line, and VPN data services.

Buyer Products:

  • Enterprise - Data/Managed Data Services - ATM
  • Enterprise - Access and Local Services - Metro Ethernet Service
  • Enterprise - Data/Managed Data Services - Private Line
  • Enterprise - Enterprise Mobility - Network Based VPN
  • Enterprise - Enterprise Mobility - Premises Based VPN
  • Enterprise - IP and IP VPN - Network Based VPN
  • Enterprise - IP and IP VPN - Premises Based VPN
  • Enterprise - Wholesale - Data Networking - SONET
  • Enterprise - Wholesale - Data Networking - Ethernet
  • Enterprise - Wholesale - Data Networking - Point to Point
  • Enterprise - Wholesale - Data Networking - Wavelength
  • Enterprise - Wholesale - Data Networking - ATM
  • Enterprise - Wholesale - Data Networking - Frame Relay
  • Enterprise - Wholesale - Data Networking - Private Line
  • Enterprise - Wholesale - IP Networking - VPN
  • SBC PremierSERV SONET
  • SBC PremierSERVSM Plus
  • SBC PremierSERV Internet Protocol - Virtual Private Network
  • SBC PremierSERV ATM
  • SBC PremierSERV Frame Relay
  • Dedicated Communications
  • Enterprise - Access and Local Services - ACCU-Ring
  • BellSouth Data Services
  • FasTrak Business ISDN
  • Enterprise - Access and Local Services - Ethernet Switched Service
  • Enterprise - Data/Managed Data Services - Frame Relay
  
Voice Services  
Calling Card Services
Services which offer prepaid calling using a card, available independently of a regular phone service.

Buyer Products:

  • Enterprise - Voice - Calling Cards Services
  • BellSouth Long Distance Calling Card
  • Residential - Voice - Calling Cards
  
Local
Intra-LATA (Local Access and Transport Area) voice services.

Buyer Products:

  • Enterprise - Voice - Local Phone Services
  • Enterprise - Wholesale - Voice Networking - Local Phone Service
  • Residential - Voice - Local Phone Service
  • Enterprise - Access and Local Services - Local Phone Service
  • Consumer - Calling Services - Local Services
  • BellSouth Voice Services
  • SBC Local Calling Plans
  • Business - Voice Services - Local
  
Long Distance
Long distance services offered within the United States and with other countries.

Buyer Products:

  • Enterprise - Voice - Long Distance Services
  • Enterprise - Wholesale - Voice Networking - Long Distance Service
  • Residential - Voice - Long Distance Service
  • SBC Long Distance Service
  • Consumer - Calling Services - Long Distance
  • SBC Long Distance Private Line Service
  • BellSouth Long Distance Services
  • Business - Voice Services - Long Distance
  
Voice Over IP Telephony (VoIP)
Telephone service which employs a users high-speed internet connection to make calls, rather than the conventional 'Circuit switching' method employed by traditional long distance carriers.

Buyer Products:

  • Enterprise - VOIP Services
  • Enterprise - Wholesale - Voice Networking - VOIP
  • Enterprise - Wholesale - IP Networking - VOIP
  • SBC PremierSERV IP Telephony
  • AT&T CallVantage Service
  • BellSouth VoIP Services
  • SBC PremierSERV Centrex IP
  
Consumer  
Media  
Electronic Media  
Consumer Content  
Information and News  
Classifieds and Directories  
Directory
Web-based business/individual directories. Includes white/yellow pages.

Buyer Products:

  • AnyWho.com
  • YellowPages.com
  
Print  
Advertising  
Directories  
Domestic  
White/Yellow Pages
Directories to look up individuals and businesses.

Buyer Products:

  • AT&T Directories
  • AT&T Advertising & Publishing - The Real Yellow Pages
  • AT&T Advertising & Publishing - The Real White Pages
  
Technology  
Information Technology (IT) Services  
Enterprise and Technology Consulting  
Industry-Specific IT Services  
Government
IT solutions tailored and marketed for the public sector.

Buyer Products:

  • Enterprise - Government - State and Local
  • Enterprise - Government - Federal
  
Healthcare
IT solutions tailored and marketed for the healthcare industry.

Buyer Products:

  • Enterprise - Healthcare - Digital Health
  
Information Technology (IT) Consulting  
Enterprise Solutions  
Application Management
Services involving the customized development, installation, integration, and ongoing maintenance of enterprise applications.

Buyer Products:

  • Enterprise - Hosting - Application Management
  • USi Application Management
  • Enterprise - Integration - Application Development
  
Customer Relationship Management (CRM)
Design/Implementation of application-based solutions that help an enterprise manage customer relationships in an organized manner.

Buyer Products:

  • AT&T Customer Relationship Management Services
  
Infrastructure and Network Services  
Design, Integration, and Implementation  
Messaging and Telephony
The design, installation, and maintenance of infrastructure to handle an enterprise's messaging and telephony needs.

Buyer Products:

  • Enterprise - Collaboration - Messaging
  • American Messaging
  
Networks and Servers
The design, installation, and legacy integration of network and server infrastructure.

Buyer Products:

  • Enterprise - Consulting - Network and Systems Operations Management
  • Enterprise - Integration - Network Design and Transformation
  • AT&T Data Services
  • Enterprise - Consulting - Advanced Network Infrastructure
  
Software Design/Engineering
Services encompassing the development and maintenance of infrastructure, systems, and embedded software.

Buyer Products:

  • Enterprise - Integration - Network Design and Transformation
  
Storage Area Networks
The design and installation of storage infrastructures for company data within data networks.

Buyer Products:

  • Enterprise - Security and Business Continuity - StorageConnect
  • Enterprise - Wholesale - Hosting - AT&T Managed
  • Enterprise - Wholesale - Security and Business Continuity
  
Security and Management  
Desktop Support Services
Providing Help Desk service and support, and logistics services (Install, Add, Move, Change Services).

Buyer Products:

  • AT&T Contact Center Professional Service
  
Disaster Recovery/Planning Services
Developing policies and procedures to ensure rapid restoration of computer systems and resumption of computer-based operations in the event of a systems disruption. Includes backing up and maintenance of files for clients from offsite locations.

Buyer Products:

  • Enterprise - Security and Business Continuity - Business Continuity
  • Networking Exchange - Business Continuity
  • Hosting Services - Disaster Recovery Services
  • Enterprise - Integration - Business Continuity Services
  • Enterprise - Security and Business Continuity - Enterprise Recovery Service
  • Enterprise - Security and Business Continuity - Business Continuity Professional Services
  
Network Monitoring
Network services which constantly monitor a company's network 24 hours a day, 7 days a week, and which notify the client of network outages while resolving them as they occur. Also includes performance testing and general network maintenance services.

Buyer Products:

  • Enterprise - Consulting - Network and Systems Operations Management
  
Network Security
Network services which revolve around managing the security of a company's network and preventing unauthorized access.

Buyer Products:

  • Enterprise - Enterprise Mobility - Firewall Security
  • Enterprise - Enterprise Mobility - Remote Access
  • Enterprise - Security and Business Continuity - Internet Protect
  • Enterprise - Consulting - Security Services
  • Enterprise - Security and Business Continuity - Web Security
  • Enterprise - Security and Business Continuity - Remote Vault
  • Enterprise - Security and Business Continuity - Firewall Security
  • Networking Exchange - Security
  • Enterprise - Security and Business Continuity - Intrusion Detection
  • Enterprise - Security and Business Continuity - Intrusion Prevention
  
Internet/Online Services  
Development/Design Services  
Content Management
The management of an organization's web content which serves its employees, strategic partners, and clients in the most efficient manner possible. Other elements of Content Management include: the ability for non-technical users to post changes to the website, ensuring costs of utilizing third party data sources are minimized, and ensuring high retention rates though improved customer experiences.

Buyer Products:

  • Enterprise - Wholesale - Content Management
  
E-Commerce Service Providers  
Bill Payment/Banking
Private label services that allow companies or banks to provide online bill payment, presentment or other banking functions to their customers.

Buyer Products:

  • USi eBusiness Services
  • Enterprise - Wholesale - Billing Solutions
  
Internet Merchant Services
Technologies and services which provide the store hosting and/or payment processing infrastructure for Electronic Commerce storefronts such as credit card acceptance, shopping carts, procurement services, etc.

Buyer Products:

  • USi eBusiness Services
  
Hosting Services  
Application Service Providers (ASPs)  
Enterprise Applications
Hosted services in which enterprise-class software applications are accessed using a thin client. The application logic is run on a remote machine and the host retains ownership of both the software and the server hardware. Includes Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), and Human Resource Management (HRM) applications.

Buyer Products:

  • Enterprise - Hosting - Application Management
  • AT&T WebService Connect
  • USi Application Management
  
Messaging
Hosted services that provide enterprises with messaging functions such as e-mail, calendaring, fax, and unified messaging.

Buyer Products:

  • American Messaging
  • Enterprise - Collaboration - Messaging
  
Online Meeting Place
Services in which the provider provides the virtual facilities necessary for online meetings.

Buyer Products:

  • Enterprise - Collaboration - Conferencing - Web Conferencing
  
Web Hosting Services  
Colocation/Data Centers
The hosting of physical servers at an Internet Data Center. The host provides high speed Internet access while the client maintains ownership of the hardware and software.

Buyer Products:

  • USi Remote Management
  • SBC PremierSERV Data Center Hosting
  • Enterprise - Consulting - Data Center
  
Content Delivery (Cache Services)
Outsourced private network services in which bandwidth-intensive Web content is stored on and delivered by the service provider's servers, which are spaced geographically in order to minimize the distance between the server and the Web site visitor. This level also includes complementary services that enhance content delivery performance.

Buyer Products:

  • Enterprise - Wholesale - Hosting - Intelligent Content Delivery Services
  • Enterprise - Hosting - Intelligent Content Distribution
  
Managed Hosting
Service in which the Web hosting company provides the connectivity and the hardware, and the client company provides only the Web content.

Buyer Products:

  • USi Managed Hosting
  • Enterprise - Wholesale - Hosting - Enhanced Managed
  • Enterprise - Wholesale - Hosting - AT&T Managed
  • Enterprise - Wholesale - Hosting - Client Managed
  
Network Security Services  
Access Control
Outsourced security services that ensure protection for a company's Web site, intranet, or extranet. Includes services which screen Web sites for undesirable content, such as pornography, criminal activity, and hate groups.

Buyer Products:

  • Enterprise - Wholesale - Hosting - AT&T Managed
  • Enterprise - Security and Business Continuity - Remote Vault
  • Enterprise - Enterprise Mobility - Remote Access
  
Message Filtering
Outsourced security services that filter e-mail and other incoming messages for viruses or other unwanted content.

Buyer Products:

  • Enterprise - Security and Business Continuity - Secure Email Gateway
  
Software  
Enterprise Management  
Business Intelligence  
Data Warehouse  
Management
Software that manages the operation of a data warehouse. Includes OLAP (Online Analytical Processing) capabilities.

Buyer Products:

  • Sterling Commerce, Inc. Networked Warehouse Management
  
Content Management  
Document Management  
Creation/Management
Software which creates electronic forms/documents, either from multiple data sources, or independently. Includes routing/distribution, search, viewing, and storage capabilities.

Buyer Products:

  • Sterling Commerce, Inc. Sterling Web Forms
  • Sterling Commerce, Inc. Information Broker
  
Customer Relationship Management (CRM)  
Marketing  
Analytics
Tools used for analyzing market trends, customer behavior, profitability, and overall marketing effectiveness.

Buyer Products:

  • Comergent eBusiness Suite: Marketing
  • Comergent eBusiness Suite: Pricing
  • Comergent eBusiness Platform
  
Automation/Management
Enterprise applications that perform the core services associated with marketing, including market segmentation and list management capabilities.

Buyer Products:

  • Comergent eBusiness Suite: Marketing
  • Comergent eBusiness Platform
  
Online Marketing
Solutions designed to leverage the Internet as a targeted marketing tool.

Buyer Products:

  • Comergent eBusiness Suite: Marketing
  • Comergent eBusiness Platform
  
Sales Force Automation (SFA)  
Analytics
Tools used for analyzing customer sales data, measuring sales effectiveness, and managing sales related financials.

Buyer Products:

  • Comergent eBusiness Platform
  
Automation/Management
Enterprise applications that perform the core services associated with sales force automation, including contact management, marketing encyclopedia, sales analysis, customer tracking, and territory management.

Buyer Products:

  • Comergent eBusiness Platform
  
Service  
Analytics
Tools used for measuring service effectiveness and to ensure efficient use of a service organization's resources.

Buyer Products:

  • Comergent eBusiness Suite: Guided Selling and Configuration
  • Comergent eBusiness Platform
  
Automation/Management
Enterprise applications that perform the core functions associated with customer service, including service level compliance and complaint management.

Buyer Products:

  • Comergent eBusiness Platform
  • Comergent eBusiness Suite: Account Management
  • Comergent eBusiness Suite: Guided Selling and Configuration
  
Contact Center
Software designed to enhance service capabilities by managing, synchronizing, and coordinating customer service interactions across all channels (physical mail, phone, Internet).

Buyer Products:

  • Comergent eBusiness Platform
  • Comergent eBusiness Suite: Quotes and Proposals
  
Enterprise Resource Planning (ERP)  
Business Planning/Control  
Project Management
Software that is designed specifically to manage project workflow and organization. Includes functions such as task assignment, progress reporting, information dissemination, and project costing.

Buyer Products:

  • Comergent eBusiness Suite: Product Management
  
Supply Chain  
Inventory/Transportation/Order Management
Software used to manage sales orders, transportation, inventory, and warehousing.

Buyer Products:

  • Sterling Commerce, Inc. Transportation Management
  • Comergent eBusiness Suite: Order Management
  
Management
Supply chain management software, covering critical supply chain components, such as transportation/warehousing, demand management, procurement, MRO (Maintenance, Repair, and Operating equipment) and channel partner management.

Buyer Products:

  • Industry Solutions: Communications Solutions
  • Sterling Commerce, Inc. Global Data Syncronization
  • Sterling Commerce, Inc. Sterling Multi-Channel Store Operations
  • Sterling Commerce, Inc. Sterling Multi-Channel Order Management
  • Sterling Commerce, Inc. Support Chain Visibility
  
Home/Office  
Productivity  
Speech Conversion  
Text-to-Speech
Software that allows the computer to recognize text from a document and verbalize it.

Buyer Products:

  • Natural Voices
  
IT Infrastructure  
Communications  
Data  
File Transfer
Communications software that controls and manages the transfer of digital files over network connections, often using File-Transfer Protocol (FTP).

Buyer Products:

  • Sterling Commerce, Inc. Secure Proxy
  • Sterling Commerce, Inc. Sterling Control Center
  • Sterling Commerce, Inc. Connect:Direct
  • Sterling Commerce, Inc. Connect:Direct Select
  • Sterling Commerce, Inc. Connect:Express
  • Sterling Commerce, Inc. Connect:Direct Secure+
  • Sterling Commerce, Inc. Connect:Enterprise Gateway
  • Sterling Commerce, Inc. Connect:Enterprise
  
Data Storage  
Storage Administration  
Data Availability
Software designed to ensure availability of information stored on either a single system or a storage network. Includes protection, replication, mirroring, backup, restoration and clustering software.

Buyer Products:

  • Sterling Commerce, Inc. Sterling Hosted Solutions for Data Sync
  
Enterprise Application Integration (EAI)/Middleware  
Adaptors/Integration Brokers
Software that allows disparate applications to exchange data through adaptors and industry standard interfaces such as object request brokers (ORB). Does not include application-specific APIs.

Buyer Products:

  • Sterling Commerce, Inc. Gentran Server
  • Sterling Commerce, Inc. Gentran Integration Suite
  
Database Access/Connectivity
Database connectivity software designed to allow enterprise applications access to information stored in databases. Access technologies include: distributed relational database architecture (DRDA), Java database connectivity (JDBC), and open database connectivity (ODBC).

Buyer Products:

  • Sterling Commerce, Inc. Gentran Integration Suite
  • Sterling Commerce, Inc. Gentran Basic
  • Sterling Commerce, Inc. Gentran Director Pro
  • Sterling Commerce, Inc. Gentran Director
  
Industry-Specific  
Transportation  
Shipping/Freight
Software specifically developed to facilitate the processes encountered by the shipping/freight industry.

Buyer Products:

  • Sterling Commerce, Inc. Networked Warehouse Management
  

- Focused. Denotes that the company is considered focused in this area. In general, Focused Companies draw the majority of their earnings in the sector/product area specified.

- Sector Pure-Plays. Denotes that the company is focused in the selected sector and generates nearly all earnings in the sector/product area specified.

- Sector Participation. Denotes that the company develops products in this line of business.

Relationship Details

Key Competitors

  Name Dir Rel. Revenue % Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value
Overlap
  Telefonica S.A. (ADR) n/a 132,194.704 12.24 12.16 1.62 1.67 n/a
Vodafone Group Plc (ADR) n/a 116,084.779 23.89 9.65 1.79 1.63 6.55
Verizon Communications Inc. n/a 82,093.745 13.61 11.83 0.80 0.77 n/a
Deutsche Telekom AG (ADR) n/a 61,030.480 n/a 15.50 0.67 0.68 n/a
Time Warner Cable Inc. n/a 14,298.834 n/a 13.85 0.81 0.82 n/a
Sprint Nextel Corporation n/a 9,770.993 n/a -5.97 0.29 0.31 n/a
United States Cellular Corporation n/a 3,425.329 59.28 13.90 0.81 0.85 2.41
Virgin Mobile USA, Inc. n/a 307.272 10.68 11.27 0.23 0.24 n/a
iPCS, Inc. n/a 299.928 53.64 14.88 0.55 0.57 n/a
Buyer
  Telefonica S.A. (ADR) n/a 132,194.704 12.24 12.16 1.62 1.67 n/a
Vodafone Group Plc (ADR) n/a 116,084.779 23.89 9.65 1.79 1.63 6.55
Hewlett-Packard Company n/a 114,688.559 15.66 12.60 0.98 1.00 84.58
Target
  AT&T Inc. n/a 151,630.000 12.68 12.52 1.23 1.24 n/a
Telefonica S.A. (ADR) n/a 132,194.704 12.24 12.16 1.62 1.67 n/a
Vodafone Group Plc (ADR) n/a 116,084.779 23.89 9.65 1.79 1.63 6.55
Verizon Communications Inc. n/a 82,093.745 13.61 11.83 0.80 0.77 n/a
America Movil S.A.B de C.V. (ADR) n/a 79,315.753 17.46 14.01 3.01 2.81 15.48
Deutsche Telekom AG (ADR) n/a 61,030.480 n/a 15.50 0.67 0.68 n/a
Time Warner Cable Inc. n/a 14,298.834 n/a 13.85 0.81 0.82 n/a
Sprint Nextel Corporation n/a 9,770.993 n/a -5.97 0.29 0.31 n/a
United States Cellular Corporation n/a 3,425.329 59.28 13.90 0.81 0.85 2.41
Virgin Mobile USA, Inc. n/a 307.272 10.68 11.27 0.23 0.24 n/a
iPCS, Inc. n/a 299.928 53.64 14.88 0.55 0.57 n/a
Critical Hub Networks, Inc. n/a n/a n/a n/a n/a n/a n/a
WorldNet Telecommunications, Inc. n/a n/a n/a n/a n/a n/a n/a

- Defined by the Company - Defined by Others

Dependent Suppliers

  Name Dir Rel. Revenue % Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value
Overlap
  SBA Communications Corporation 21.30% 3,632.780 n/a -35.63 6.93 6.60 n/a
Convergys Corporation 18.20% 1,340.292 n/a 10.68 0.49 0.50 19.26
Telefonaktiebolaget LM Ericsson (ADR) n/a 33,325.050 26.70 19.15 1.14 1.17 2.55
Evercore Partners Inc. n/a 1,212.618 n/a 47.81 5.00 4.35 6.87
PECO II, Inc. n/a 9.294 n/a n/a 0.23 n/a 0.61
Buyer
  Synchronoss Technologies, Inc. 67.00% 394.114 40.71 34.95 3.35 3.21 3.18
StarTek, Inc. 54.90% 121.981 n/a 20.97 0.43 0.41 1.09
ATC Technology Corp. 43.00% 404.600 n/a 10.15 0.81 0.82 2.22
FiberTower Corp. 40.00% 237.523 n/a n/a 4.10 n/a n/a
Sonus Networks, Inc. 32.00% 593.923 n/a -31.86 2.33 2.76 1.50
Amdocs Limited 28.00% 5,484.646 16.97 14.12 1.84 1.93 4.27
Ciena Corporation 25.20% 1,280.565 n/a -16.87 1.95 2.02 3.16
Target
  AT&T Inc. n/a 151,630.000 12.68 12.52 1.23 1.24 n/a
Deutsche Telekom AG (ADR) n/a 61,030.480 n/a 15.50 0.67 0.68 n/a
Nokia Corporation (ADR) n/a 49,976.129 16.35 18.00 0.80 0.87 12.04
Telefonaktiebolaget LM Ericsson (ADR) n/a 33,325.050 26.70 19.15 1.14 1.17 2.55
Sony Corporation (ADR) n/a 28,981.831 n/a -28.65 0.37 0.39 1.29
Motorola, Inc. n/a 18,018.607 n/a -406.50 0.71 0.82 3.02
SBA Communications Corporation n/a 3,632.780 n/a -35.63 6.93 6.60 n/a
Convergys Corporation n/a 1,340.292 n/a 10.68 0.49 0.50 19.26
Evercore Partners Inc. n/a 1,212.618 n/a 47.81 5.00 4.35 6.87
UTStarcom, Inc. n/a 273.615 n/a n/a 0.44 n/a 0.85
Nortel Networks Corporation (USA) n/a 35.105 n/a n/a 0.00 n/a n/a
PECO II, Inc. n/a 9.294 n/a n/a 0.23 n/a 0.61
Axesstel, Inc. n/a 3.167 n/a n/a 0.04 n/a n/a

- Defined by the Company - Defined by Others

Key Customers

  Name Dir Rel. Revenue % Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value
Buyer
  Royal Dutch Shell plc (ADR) n/a 191,581.983 14.80 n/a 0.57 n/a 1.49
Citigroup Inc. n/a 105,020.577 n/a -19.79 1.16 1.17 0.96
Lockheed Martin Corporation n/a 28,995.749 9.65 10.16 0.67 0.64 n/a
Sony Corporation (ADR) n/a 28,981.831 n/a -28.65 0.37 0.39 1.29
Corning Incorporated n/a 23,893.987 14.55 12.40 4.76 4.62 1.77
Viacom, Inc. n/a 18,212.070 17.72 14.42 1.31 1.36 n/a
Raytheon Company n/a 18,126.058 10.13 9.75 0.76 0.73 n/a
Lafarge S.A. (ADR) n/a 16,905.048 6.48 16.15 0.67 0.72 4.16
Activision Blizzard, Inc. n/a 15,690.767 76.54 21.57 3.59 3.44 5.82
Fujitsu Limited (ADR) n/a 13,315.725 19.35 n/a 0.23 n/a 2.95
Cummins Inc. n/a 9,831.954 29.35 36.49 0.83 1.01 3.55
Target
  Wal-Mart Stores, Inc. n/a 197,546.679 14.75 14.23 0.49 0.48 3.88
The Procter & Gamble Company n/a 167,667.647 12.66 14.45 2.12 2.14 n/a
AT&T Inc. n/a 151,630.000 12.68 12.52 1.23 1.24 n/a
Cisco Systems, Inc. n/a 139,140.053 22.68 21.37 3.85 3.87 5.79
Pfizer Inc. n/a 119,932.271 15.92 8.96 2.60 2.60 4.87
Hewlett-Packard Company n/a 114,688.559 15.66 12.60 0.98 1.00 84.58
Oracle Corporation n/a 109,337.194 19.39 14.31 4.76 4.52 280.35
Schering-Plough Corporation n/a 47,858.073 19.52 16.29 2.66 2.67 14.56
Alcatel-Lucent (ADR) n/a 10,552.776 n/a -47.50 0.44 0.48 n/a
Sprint Nextel Corporation n/a 9,770.993 n/a -5.97 0.29 0.31 n/a
IDT Corporation n/a 80.223 n/a n/a 0.05 n/a 0.53
Universidad Interamericana de Puerto Rico n/a n/a n/a n/a n/a n/a n/a
Direct TV n/a n/a n/a n/a n/a n/a n/a
Realogy Corporation n/a n/a n/a n/a n/a n/a n/a

- Defined by the Company - Defined by Others

Key Partners

  Name Dir Rel. Revenue % Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value
Overlap
  Nokia Corporation (ADR) n/a 49,976.129 16.35 18.00 0.80 0.87 12.04
Sony Corporation (ADR) n/a 28,981.831 n/a -28.65 0.37 0.39 1.29
Convergys Corporation n/a 1,340.292 n/a 10.68 0.49 0.50 19.26
Buyer
  Apple Inc. n/a 168,458.349 32.55 32.35 4.87 4.76 6.66
Cisco Systems, Inc. n/a 139,140.053 22.68 21.37 3.85 3.87 5.79
Citigroup Inc. n/a 105,020.577 n/a -19.79 1.16 1.17 0.96
America Movil S.A.B de C.V. (ADR) n/a 79,315.753 17.46 14.01 3.01 2.81 15.48
Nokia Corporation (ADR) n/a 49,976.129 16.35 18.00 0.80 0.87 12.04
Sony Corporation (ADR) n/a 28,981.831 n/a -28.65 0.37 0.39 1.29
Accenture Plc n/a 28,596.720 17.99 14.37 1.23 1.29 9.91
The DIRECTV Group, Inc. n/a 26,249.840 20.15 18.95 1.29 1.22 n/a
Yahoo! Inc. n/a 23,590.986 2,382.91 44.65 3.50 5.00 2.93
Viacom, Inc. n/a 18,212.070 17.72 14.42 1.31 1.36 n/a
Target
  AT&T Inc. n/a 151,630.000 12.68 12.52 1.23 1.24 n/a
Deutsche Telekom AG (ADR) n/a 61,030.480 n/a 15.50 0.67 0.68 n/a
Nokia Corporation (ADR) n/a 49,976.129 16.35 18.00 0.80 0.87 12.04
Research In Motion Limited (USA) n/a 38,065.099 18.72 16.43 2.88 2.61 6.86
Telefonaktiebolaget LM Ericsson (ADR) n/a 33,325.050 26.70 19.15 1.14 1.17 2.55
Sony Corporation (ADR) n/a 28,981.831 n/a -28.65 0.37 0.39 1.29
Motorola, Inc. n/a 18,018.607 n/a -406.50 0.71 0.82 3.02
Alcatel-Lucent (ADR) n/a 10,552.776 n/a -47.50 0.44 0.48 n/a
Convergys Corporation n/a 1,340.292 n/a 10.68 0.49 0.50 19.26
UTStarcom, Inc. n/a 273.615 n/a n/a 0.44 n/a 0.85
Nortel Networks Corporation (USA) n/a 35.105 n/a n/a 0.00 n/a n/a
HTC Corporation n/a n/a n/a n/a n/a n/a n/a

- Defined by the Company - Defined by Others

Financials

Scenario 1:
Buyer's Share Price: 25.70; Target's Share Price: 8.39; Deal: 100.00%/0.00%/0.00%; Cost of Cash/Debt: 5.00%/6.00%; Years to Amortize Acquired Intangibles: 7;
Scenario 2:
Buyer's Share Price: 25.70; Target's Share Price: 9.23; Deal: 100.00%/0.00%/0.00%; Cost of Cash/Debt: 5.00%/6.00%; Years to Amortize Acquired Intangibles: 7;
Scenario 3:
Buyer's Share Price: 25.70; Target's Share Price: 10.07; Deal: 100.00%/0.00%/0.00%; Cost of Cash/Debt: 5.00%/6.00%; Years to Amortize Acquired Intangibles: 7;
Scenario 4:
Buyer's Share Price: 25.70; Target's Share Price: 10.91; Deal: 100.00%/0.00%/0.00%; Cost of Cash/Debt: 5.00%/6.00%; Years to Amortize Acquired Intangibles: 7;
  Buyer Target Scenario 1 Scenario 2 Scenario 3 Scenario 4
Income Statement
Operating Items
Revenue 111,225.0 1,045.3 112,270.3 112,270.3 112,270.3 112,270.3
Other Revenue 12,498.0 0.0 12,498.0 12,498.0 12,498.0 12,498.0
Total Revenue 123,723.0 1,045.3 124,768.3 124,768.3 124,768.3 124,768.3
Cost of Revenue 50,713.0 333.8 51,046.8 51,046.8 51,046.8 51,046.8
SG&A Expense 31,440.0 301.6 31,741.6 31,741.6 31,741.6 31,741.6
Depreciation & Amortization 19,811.0 132.3 19,943.3 19,943.3 19,943.3 19,943.3
Interest Expense 0.0 0.0 0.0 0.0 0.0 0.0
Other Operating Expense 0.0 0.6 0.6 0.6 0.6 0.6
Total Expenses 101,964.0 768.4 102,732.4 102,732.4 102,732.4 102,732.4
Operating Income 21,759.0 276.9 22,035.9 22,035.9 22,035.9 22,035.9
Non Operating Items
Interest Expense (Inc.), Net Non-Oprtng -2,667.0 -168.3 -2,835.3 -2,835.3 -2,835.3 -2,835.3
Other, Net -563.0 0.0 -563.0 -563.0 -563.0 -563.0
Income Before Taxes 18,529.0 108.6 18,637.6 18,637.6 18,637.6 18,637.6
Income Taxes 6,418.0 27.8 6,455.6 6,455.6 6,455.6 6,455.6
Income After Taxes 12,111.0 80.8 12,182.0 12,182.0 12,182.0 12,182.0
Minority Interest (IS) -153.0 -0.8 n/a n/a n/a n/a
Net Income - Excl. Xord. Items 11,958.0 80.0 12,028.2 12,028.2 12,028.2 12,028.2
Discontinued Operations 0.0 -0.8 n/a n/a n/a n/a
Net Income - Incl. Xord. Items 11,958.0 79.3 12,027.4 12,027.4 12,027.4 12,027.4
Income Avail. to Common 11,958.0 79.3 12,027.4 12,027.4 12,027.4 12,027.4
Share Items
Basic Avg. Shares Outstanding 5,900.0 111.1 5,936.6 5,940.2 5,943.9 5,947.5
Basic EPS - Excl. Xord. Items 2.03 0.72 2.03 2.02 2.02 2.02
Basic EPS - Incl. Xord. Items 2.03 0.71 2.03 2.02 2.02 2.02
Full Dilution Adjustment 2.0 0.0 n/a n/a n/a n/a
Fully Diluted Shares Outstanding 5,923.0 112.0 5,959.6 5,963.2 5,966.9 5,970.5
F.D. EPS - Excl. Xord. Items 2.02 0.71 2.02 2.02 2.02 2.01
F.D. EPS - Incl. Xord. Items 2.02 0.71 2.02 2.02 2.02 2.01
Dividends Per Common Share 1.63 0.00 n/a n/a n/a n/a
Balance Sheet
Assets
Cash and Equivalents 7,348.0 247.6 7,595.6 7,595.6 7,595.6 7,595.6
Accounts Receivable 14,846.0 109.5 14,955.5 14,955.5 14,955.5 14,955.5
Inventory 0.0 27.5 27.5 27.5 27.5 27.5
Prepayments and Advances 1,786.0 23.9 1,809.9 1,809.9 1,809.9 1,809.9
Other Current Assets 2,960.0 0.0 2,960.0 2,960.0 2,960.0 2,960.0
Current Assets 26,940.0 408.5 27,348.5 27,348.5 27,348.5 27,348.5
PPE 222,926.0 0.0 222,926.0 222,926.0 222,926.0 222,926.0
Accum D&A -124,697.0 0.0 -124,697.0 -124,697.0 -124,697.0 -124,697.0
PPE, Net 98,229.0 564.3 98,793.3 98,793.3 98,793.3 98,793.3
Goodwill & Intangibles 133,820.0 475.3 136,162.4 136,256.3 136,350.3 136,444.3
Long Term Investments 2,749.0 0.0 2,749.0 2,749.0 2,749.0 2,749.0
Other Assets 0.0 0.0 0.0 0.0 0.0 0.0
Other LT Assets 6,180.0 32.8 6,212.8 6,212.8 6,212.8 6,212.8
Total Assets 267,918.0 1,480.9 269,398.9 269,398.9 269,398.9 269,398.9
Liabilities
Accounts Payable 0.0 21.8 21.8 21.8 21.8 21.8
Payable/Accrued 18,046.0 0.0 18,046.0 18,046.0 18,046.0 18,046.0
Accrued Expenses 0.0 163.8 163.8 163.8 163.8 163.8
ST Debt 0.0 0.0 0.0 0.0 0.0 0.0
Curr Port of LTD & Cap Lease Oblg 10,155.0 275.0 10,430.0 10,430.0 10,430.0 10,430.0
Other (Current) Liabilities 8,018.0 0.0 8,018.0 8,018.0 8,018.0 8,018.0
Current Liab. 36,219.0 460.5 36,679.5 36,679.5 36,679.5 36,679.5
LT Debt 66,565.0 1,750.5 68,315.5 68,315.5 68,315.5 68,315.5
Total LT Debt 66,565.0 1,750.5 68,315.5 68,315.5 68,315.5 68,315.5
Minority Interest (BS) 403.0 1.4 404.4 404.4 404.4 404.4
Deferred Taxes 20,354.0 165.1 20,519.1 20,519.1 20,519.1 20,519.1
Other LT Liab. 45,768.0 30.7 45,798.7 45,798.7 45,798.7 45,798.7
Total Liabilities 169,309.0 2,408.2 171,717.2 171,717.2 171,717.2 171,717.2
Shareholders Equity
Common Stock 6,495.0 1.1 6,496.1 6,496.1 6,496.1 6,496.1
Additional Paid in Capital 91,637.0 64.5 91,701.5 91,701.5 91,701.5 91,701.5
Retained Earnings 38,069.0 -991.4 37,077.6 37,077.6 37,077.6 37,077.6
Treasure Stock -21,284.0 -1.1 -21,285.1 -21,285.1 -21,285.1 -21,285.1
Other Equity -16,308.0 -0.5 -16,308.5 -16,308.5 -16,308.5 -16,308.5
Total Equity 98,609.0 -927.3 97,681.7 97,681.7 97,681.7 97,681.7
Total Liab. & Equity 267,918.0 1,480.9 269,398.9 269,398.9 269,398.9 269,398.9
Shares Outstanding 5,900.0 111.4 5,936.6 5,940.2 5,943.9 5,947.5
Cash Flow
Operating Cash Flow
CF Net Income 11,982.0 79.4 12,051.6 12,051.6 12,051.6 12,051.6
CF Depreciation 19,811.0 132.3 19,943.3 19,943.3 19,943.3 19,943.3
CF Deferred Taxes 5,249.0 14.9 5,263.9 5,263.9 5,263.9 5,263.9
Other Non-Cash Items 1,848.0 21.8 1,869.8 1,869.8 1,869.8 1,869.8
Change in Working Capital -2,937.0 -14.9 -2,951.9 -2,951.9 -2,951.9 -2,951.9
Total Cash From Operating Activities 35,953.0 233.5 36,176.7 36,176.7 36,176.7 36,176.7
Investing Cash Flow (not calculated)
Capital Expenditures -17,392.0 -117.6 n/a n/a n/a n/a
Other Investing Cash Flows 79.0 0.2 n/a n/a n/a n/a
Total Cash From Investing Activities -17,313.0 -117.4 n/a n/a n/a n/a
Financing Cash Flow (not calculated)
Dividends Paid -9,539.0 0.0 n/a n/a n/a n/a
Purchase Or Sale of Stock 13.0 9.4 n/a n/a n/a n/a
Purchase and Retirement of Debt -3,277.0 -3.3 n/a n/a n/a n/a
Other Financing Cash Flow -120.0 1.6 n/a n/a n/a n/a
Total Cash From Financing Activities -12,923.0 7.6 n/a n/a n/a n/a
Exchange Rate Effects 0.0 0.0 n/a n/a n/a n/a
Net Change in Cash 5,717.0 123.8 n/a n/a n/a n/a
Cash Taxes Paid 2,872.0 4.5 n/a n/a n/a n/a
Cash Interest Paid 4,083.0 107.8 n/a n/a n/a n/a

Accretion/Dilution Matrices

Cash as Percentage of the Total Consideration

  Consideration 0 - $939.72 Consideration 1 - $1,033.69 Consideration 2 - $1,137.06 Consideration 3 - $1,250.77
Cash % Proforma EPS Acc./Dil. Acc./Dil. % Proforma EPS Acc./Dil. Acc./Dil. % Proforma EPS Acc./Dil. Acc./Dil. % Proforma EPS Acc./Dil. Acc./Dil. %
0% 2.02 -0.00 -0.00% 2.02 -0.00 -0.00% 2.02 -0.00 -0.00% 2.01 -0.00 -0.00%
10% 2.02 0.00 0.00% 2.02 -0.00 -0.00% 2.02 -0.00 -0.00% 2.02 -0.00 -0.00%
20% 2.02 0.00 0.00% 2.02 -0.00 -0.00% 2.02 -0.00 -0.00% 2.02 -0.00 -0.00%
30% 2.02 0.00 0.00% 2.02 0.00 0.00% 2.02 -0.00 -0.00% 2.02 -0.00 -0.00%
40% 2.02 0.00 0.00% 2.02 0.00 0.00% 2.02 0.00 0.00% 2.02 -0.00 -0.00%
50% 2.02 0.00 0.00% 2.02 0.00 0.00% 2.02 0.00 0.00% 2.02 0.00 0.00%

Proforma Effect of Operating Synergies

  Consideration 0 - $939.72 Consideration 1 - $1,033.69 Consideration 2 - $1,137.06 Consideration 3 - $1,250.77
Synergies $ Proforma EPS Acc./Dil. Acc./Dil. % Proforma EPS Acc./Dil. Acc./Dil. % Proforma EPS Acc./Dil. Acc./Dil. % Proforma EPS Acc./Dil. Acc./Dil. %
$0.0 2.02 -0.00 -0.00% 2.02 -0.00 -0.00% 2.02 -0.00 -0.00% 2.01 -0.00 -0.00%
$30.2 2.02 0.00 0.00% 2.02 0.00 0.00% 2.02 0.00 0.00% 2.02 -0.00 -0.00%
$60.3 2.02 0.01 0.00% 2.02 0.00 0.00% 2.02 0.00 0.00% 2.02 0.00 0.00%
$90.5 2.03 0.01 0.00% 2.03 0.01 0.00% 2.03 0.01 0.00% 2.02 0.01 0.00%
$120.6 2.03 0.01 0.01% 2.03 0.01 0.01% 2.03 0.01 0.00% 2.03 0.01 0.00%
$150.8 2.03 0.02 0.01% 2.03 0.01 0.01% 2.03 0.01 0.01% 2.03 0.01 0.01%