of the data presented on the next page may be reprinted, sold or redistributed without the written consent of Starshak Welnhofer & Co.
Starshak Welnhofer & Co. is a private investment banking firm serving middle-market companies since 1990 with a special focus on distribution. It is a financial advisor to corporations and not-for-profit entities in the issuance of debt and equity securities to institutional investors, M& A transactions, ESOPs, debt restructurings, reorganizations in or outside of bankruptcy proceedings, fairness opinions, valuations and expert testimony. The firm is a registered broker/dealer and a member of the NASD. For more information or a complimentary copy of its monthly newsletter, please contact William G. Welnhofer at 312-444-9367 or b.welnhofer@SWandCo.com or Ste. 2530, 55 West Monroe St., Chicago, IL 60603. Please see the previous page for important information regarding the data shown.
Click on Related Document below for the pdf file of the index of public company financials and SW Distribution EV and EBITDA Indexes.
The Chicago investment banking firm of Starshak Welnhofer & Co. has prepared the following indexes from public data as of June 30, 2006.
Figure A (click here to see data) highlights key financial metrics for 25 publicly traded wholesale distributors with an enterprise value of at least $75 million on Jan. 31, 2006.
Figure B (click here to see indexes) plots the SW EV Index, which tracks the aggregate enterprise value of 64 publicly held wholesale distribution companies as of the close of the last trading day in any month during the index period. EV means market capitalization of equity plus preferred stock plus total interest-bearing debt net of any cash. Figure B also plots the SW Distribution EBITDA Index, which tracks the aggregate past 12 months of EBITDA as of the close of the last trading day in any month during the index period. EBITDA is earnings before interest, taxes, depreciation and amortization, in certain cases adjusted by Bloomberg for income or expenses thought to be non-recurring.
The SW Distribution EV Index (click here to see indexes) decreased by 6.6% in June, closing at 134.9% on June 30th from a restated 144.4 on May 31st, and has now actually fallen by 3.3% on a year to date basis. This compares with the Conformed S& P 500 Index which was flat last month, and is now up 1.7% on a year to date basis. We note that the EV Index now trails the Conformed S& P Index by a meaningful margin for the year and since inception. The SW Distribution EBITDA Index was flat in June, closing at 135.5 on June 30th, identical to the restated number on May 31st, and is now up by 1.6% on a year to date basis.
Construction of the Indexes
Each index is cap-weighted based on aggregate enterprise value and EBITDA. The initial value of each index was set equal to 100 as of Jan. 31, 2003, and each was recomputed as of the last trading day of every month thereafter. Divisor adjustments were made to account for any company entering the indexes, in the case of an IPO after Jan. 31, 2003, and for any material acquisition or divestiture made after the start date for which there was data available. To show more clearly these indexes in relation to the S& P 500 Index, we adjusted the S& P as of Jan. 31, 2006, to a conformed value of 100 and adjusted every month thereafter. Financial data used to calculate the indexes have been provided by Bloomberg Financial Markets without any independent verification by Starshak Welnhofer & Co. Errors in making the index calculations are the responsibility of Starshak Welnhofer & Co.
Disclosures for the SW Distribution EV and EBITDA Indexes
These materials are for informational purposes only. Financial data was prepared by Starshak Welnhofer & Co. based on public data, and while it makes every effort to use reliable, comprehensive information, it makes no representation that it is accurate or complete, and it has no obligation to update this information. Starshak Welnhofer & Co. does and seeks to do investment banking with index companies; readers should know the firm may have a conflict of interest that could affect its objectivity.
The SW Distribution EV and EBITDA Indexes were developed by and are the exclusive property of Starshak Welnhofer & Co. Third-party data providers make no warranties or representations of any kind relating to the accuracy, completeness, or timeliness of the data they provide and shall not have liability for any damages of any kind relating to such data. None
