CONFIDENTIAL
PRELIMINARY
PROJECT COLORS
Preliminary Discussion Materials
May 18, 2001
SG Cowen
INTRODUCTION
The following materials, including the information on specific companies and transactions, are preliminary and for use solely by the Special Committee of the Board of Directors of Colors for discussion purposes only. These materials are not meant to suggest or assign any value to any company. These materials are confidential and shall not be reproduced or provided to any third party except with the express written consent of SG Cowen Securities Corporation.
TRADING MULTIPLES OF SELECTED COMPANIES
Trading Multiples of Selected Companies
(US$ in millions, except per share data)
| | | | | | Enterprise Value as a Multiple of(b)(c)(d) | | | | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | | | | Revenues | Price/Earnings(c)(d) | | |||||||||||||||||||
| Company (FYE) | Stock Price(a) | % of 52 Week High(a) | Market Value | Enterprise Value(b) | Estimated 5 yr EPS Growth(e) | |||||||||||||||||||||
| LTM | CY01E | CY02P | LTM | CY01E | CY02P | |||||||||||||||||||||
| ASPs | ||||||||||||||||||||||||||
| Corio, Inc. (12/31) | $ | 1.08 | 5.0 | % | $ | 56.9 | $ | (50.6 | ) | (0.98 | )x | (0.78 | )x | (0.44 | )x | NM | NM | NM | 20.0 | % | ||||||
| Interliant, Inc. (12/31) | 1.30 | 4.5 | 87.1 | 216.6 | 1.27 | 1.06 | 0.67 | NM | NM | NM | 32.5 | |||||||||||||||
| NaviSite, Inc. (7/31) | 1.96 | 3.3 | 116.7 | 48.0 | 0.54 | 0.11 | NM | NM | NM | NM | 122.9 | |||||||||||||||
| eCRM | ||||||||||||||||||||||||||
| Chordiant Software Inc. (12/31) | 3.05 | 16.0 | 161.0 | 82.8 | 1.98 | 1.15 | 0.80 | NM | NM | NM | 45.0 | |||||||||||||||
| FirePond, Inc. ( 10/31) | 1.93 | 4.5 | 69.4 | (31.5 | ) | (0.49 | ) | (0.41 | ) | NM | NM | NM | NM | 62.5 | ||||||||||||
| Onyx Software (12/31) | 4.96 | 15.4 | 213.4 | 182.6 | 1.44 | 1.32 | 0.93 | NM | NM | 62.0 | x | 41.0 | ||||||||||||||
| B2B | ||||||||||||||||||||||||||
| Onvia.com, Inc. (12/31) | $ | 0.89 | 7.5 | % | $ | 80.9 | $ | (30.7 | ) | (0.22 | )x | (1.36 | )x | (0.87 | )x | NM | NM | NM | 100.0 | % | ||||||
| PurchasePro.com (12/31) | 2.53 | 5.3 | 173.8 | 150.7 | 1.67 | 0.92 | 0.63 | NM | 84.3 | x | 9.0 | x | NM | |||||||||||||
| VerticalNet, Inc. (12/31) | 2.74 | 4.3 | 268.6 | 202.5 | 1.49 | 0.90 | 0.54 | NM | NM | NM | 35.0 | |||||||||||||||
| Transportation | ||||||||||||||||||||||||||
| Autobytel.com (12/31) | $ | 1.37 | 16.0 | % | $ | 27.9 | ($ | 39.6 | ) | (0.58 | )x | (0.51 | )x | NM | NM | NM | NM | 20.0 | % | |||||||
| CCC Information Services Group (12/31) | 9.75 | 70.9 | 215.1 | 257.4 | 1.23 | 1.22 | NM | NM | NM | NM | NM | |||||||||||||||
| PartsBase.com (12/31) | 1.03 | 11.8 | 14.8 | (12.3 | ) | (2.39 | ) | (1.76 | ) | (0.95 | )x | NM | NM | NM | NM | |||||||||||
| The Reynolds and Reynolds Co. (9/30) | 22.15 | 82.2 | 1,667.1 | 1,856.7 | 1.92 | 1.78 | NM | 17.7 | x | 16.2 | x | NM | NM | |||||||||||||
| High | 82.2 | % | 1.98 | x | 1.78 | x | 0.93 | x | 17.7 | x | 84.3 | x | 62.0 | x | 122.9 | % | ||||||||||
| Median | 7.5 | 1.23 | x | 0.90 | x | 0.59 | x | 17.7 | x | 50.3 | x | 35.5 | x | 41.0 | % | |||||||||||
| Mean | 19.0 | 0.53 | 0.28 | 0.16 | 17.7 | 50.3 | 35.5 | 53.2 | ||||||||||||||||||
| Low | 3.3 | (2.39 | ) | (1.76 | ) | (0.95 | ) | 17.7 | 16.2 | 9.0 | 20.0 | |||||||||||||||
OPERATING STATISTICS OF SELECTED COMPANIES
Operating Statistics of Selected Companies
(US$ in millions, except per share data)
| | | Operating Results(a)(b)(c) | | | | | | | | | | | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Revenues | | Margins | EPS(a)(b)(c) | | | | | | ||||||||||||||||||||||||||||||||
| Company (FYE) | Revenue Growth Rate CY/CY+1 | | | | | Book Value(d) | | |||||||||||||||||||||||||||||||||||
| LTM | CY01E | CY02P | LTM EBIT | Gross | EBIT | LTM | CY01E | CY02P | Cash(d) | STD(d) | LTD(d) | Debt/Cap. | ||||||||||||||||||||||||||||||
| ASPs | ||||||||||||||||||||||||||||||||||||||||||
| Corio, Inc. (12/31) | 76.6 | % | $ | 51.9 | $ | 64.6 | $ | 114.0 | ($ | 82.5 | ) | (23.1) | % | (159.1) | % | ($ | 1.65 | ) | ($ | 1.68 | ) | ($ | 1.15 | ) | $ | 117.1 | $ | 0.0 | $ | 9.6 | $ | 137.8 | 6.5 | % | ||||||||
| Interliant, Inc. (12/31) | 58.8 | 170.8 | 204.0 | 324.0 | (98.4 | ) | 27.3 | (57.6 | ) | (2.12 | ) | (3.26 | ) | (2.63 | ) | 68.1 | 14.1 | 183.6 | 29.3 | 87.1 | ||||||||||||||||||||||
| NaviSite, Inc. (7/31) | NM | 88.5 | 454.8 | NA | (90.2 | ) | (27.7 | ) | (102.0 | ) | (1.87 | ) | (1.64 | ) | NA | 68.7 | 0.0 | 0.0 | 57.2 | 0.0 | ||||||||||||||||||||||
| eCRM | ||||||||||||||||||||||||||||||||||||||||||
| Chordiant Software, Inc. (13/31) | 43.5 | 41.7 | 72.3 | 103.7 | (26.6 | ) | 51.1 | (63.7 | ) | (0.59 | ) | (0.51 | ) | (0.06 | ) | 78.7 | 0.5 | 0.0 | 94.8 | 0.5 | ||||||||||||||||||||||
| FirePond, Inc. (10/31) | NM | 64.5 | 77.3 | NA | (18.4 | ) | 56.6 | (28.6 | ) | (0.36 | ) | (0.73 | ) | NA | 101.2 | 0.3 | 0.0 | 104.4 | 0.3 | |||||||||||||||||||||||
| Onyx Software (12/31) | 41.9 | 126.7 | 138.6 | 196.7 | (11.1 | ) | 74.3 | (8.8 | ) | (0.29 | ) | (0.56 | ) | 0.08 | 36.4 | 1.2 | 4.3 | 83.4 | 6.2 | |||||||||||||||||||||||
| B2B | ||||||||||||||||||||||||||||||||||||||||||
| Onvia.com, Inc. (12/31) | 57.1 | % | $ | 137.9 | $ | 22.5 | $ | 35.3 | ($ | 102.8 | ) | (1.5) | % | (74.6) | % | ($ | 1.03 | ) | ($ | 0.53 | ) | ($ | 0.26 | ) | $ | 118.6 | $ | 4.8 | $ | 2.2 | $ | 163.2 | 4.1 | % | ||||||||
| PurchasePro.com (12/31) | 45.8 | 90.2 | 163.1 | 237.7 | (9.5 | ) | 93.0 | (10.6 | ) | (0.08 | ) | 0.03 | 0.28 | 54.9 | 24.7 | 7.2 | 263.7 | 10.8 | ||||||||||||||||||||||||
| VerticalNet, Inc. (12/31) | 67.8 | 136.3 | 224.1 | 376.0 | (113.4 | ) | 36.1 | (83.2 | ) | (1.29 | ) | (0.68 | ) | (0.01 | ) | 107.3 | 2.1 | 39.1 | 647.5 | 6.0 | ||||||||||||||||||||||
| Transportation | ||||||||||||||||||||||||||||||||||||||||||
| Autobytel.com (12/31) | NM | $ | 68.1 | $ | 78.0 | NA | ($ | 30.1 | ) | NM | (44.2) | % | ($ | 1.17 | ) | ($ | 0.28 | ) | NA | $ | 76.2 | $ | 0.0 | $ | 8.8 | $ | 86.2 | 9.3 | % | |||||||||||||
| CCC Information Services Group (12/31) | NM | 209.5 | 210.5 | NA | (3.5 | ) | 64.5 | % | (1.7 | ) | (1.10 | ) | (0.34 | ) | NA | 11.6 | 0.4 | 53.4 | (5.5 | ) | NM | |||||||||||||||||||||
| PartsBase.com (12/31) | 85.7 | % | 5.1 | 7.0 | $ | 13.0 | (11.0 | ) | (21.1 | ) | (213.4 | ) | (0.60 | ) | (0.72 | ) | ($ | 0.54 | ) | 27.1 | 0.0 | 0.0 | 30.3 | 0.0 | ||||||||||||||||||
| The Reynolds and Reynolds Co. (9/30) | NM | 967.4 | 1,041.9 | NA | 158.8 | 58.5 | 16.4 | 1.25 | 1.37 | NA | 134.0 | 211.6 | 112.1 | 467.1 | 40.9 | |||||||||||||||||||||||||||
| High | 85.7 | % | 93.0 | % | 16.4 | % | 87.1 | % | ||||||||||||||||||||||||||||||||||
| Median | 57.9 | % | 43.6 | % | (57.6) | % | 6.1 | % | ||||||||||||||||||||||||||||||||||
| Mean | 59.6 | 32.3 | (63.9 | ) | 14.3 | |||||||||||||||||||||||||||||||||||||
| Low | 41.9 | (27.7 | ) | (213.4 | ) | 0.0 | ||||||||||||||||||||||||||||||||||||
SELECTED TRANSACTION STATISTICS(a)
Selected Transaction Statistics
(US$ in millions)
| | | | | | Total Consideration as a Multiple of: | Premiums Paid to Market(a) | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Announce Date | Closing Date | Acquiring Company/ Target Company | Equity Value | Enterprise Value | LTM Revenue | LQA Revenue | FY+1 Revenue | 4 Weeks Prior | One Day Prior | ||||||||||||
| 4/11/01 | Pending | Autobytel.com Inc. Autoweb.com, Inc. | $ | 15.6 | $ | 2.6 | 0.06 | x | 0.07 | x | NA | 69.4 | % | 82.6 | % | ||||||
| 4/9/01 | Pending | Kana Communications, Inc. Broadbase Software, Inc. | 87.1 | (45.1 | ) | (0.82 | ) | (0.86 | ) | (0.78) | x | (55.1 | %) | 27.8 | % | ||||||
| 4/9/01 | Pending | General Electric NBCi | 86.1 | 244.8 | 1.99 | 1.97 | 2.76 | 24.0 | % | 46.0 | % | ||||||||||
| 1/8/01 | 3/27/01 | Chordiant Software Inc. Prime Response Inc. | 34.2 | 2.2 | 0.07 | 0.08 | NA | (5.7 | %) | (2.4 | %) | ||||||||||
| 12/20/00 | 4/12/01 | Vitamin Shoppe Industries Inc. VitaminShoppe.com, Inc. | 20.4 | 18.6 | 0.54 | 0.48 | 0.27 | 113.3 | % | 220.0 | % | ||||||||||
| 12/11/00 | 1/22/01 | Bosch Security Systems Corp. Detection Systems, Inc. | 121.1 | 139.0 | 1.00 | 0.98 | NA | 46.9 | % | 38.5 | % | ||||||||||
| 10/25/00 | 11/29/00 | Telelogic AB Continuus Software Corp. | 41.5 | 41.8 | 1.03 | 0.95 | 0.60 | 90.9 | % | 28.7 | % | ||||||||||
| 10/25/00 | 12/21/00 | Trilogy Software, Inc. pcOrder.com, Inc. | 105.5 | 32.9 | 0.56 | 0.61 | 0.60 | 55.7 | % | 85.5 | % | ||||||||||
| 6/27/00 | 9/29/00 | Integrated Defense Technologies, Inc. Tech-Sym | 183.0 | 151.1 | 0.89 | 0.84 | NA | 36.4 | % | 25.0 | % | ||||||||||
| 4/27/00 | 9/1/00 | Allen Systems Group, Inc. Viasoft, Inc. | 157.4 | 69.1 | 1.00 | 1.54 | 1.10 | 26.8 | % | 52.7 | % | ||||||||||
High | $ | 183.0 | $ | 244.8 | 1.99 | x | 1.97 | x | 2.76 | x | 113.3 | % | 220.0 | % | |||||||
| Median | 86.6 | 37.3 | 0.73 | 0.73 | 0.60 | 41.7 | % | 42.2 | % | ||||||||||||
| Mean | 85.2 | 65.7 | 0.63 | 0.67 | 0.76 | 40.3 | % | 60.4 | % | ||||||||||||
| Low | 15.6 | (45.1 | ) | (0.82 | ) | (0.86 | ) | (0.78 | ) | (55.1 | %) | (2.4 | %) | ||||||||
PREMIUMS PAID IN RECENT PRIVATIZATION TRANSACTIONS(a)
Recent Privatization Premiums Paid
(US$ in millions)
| | | | | | | Premium | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Ann. Date | Eff. Date | Target Name | Acquiror Name | Trans. Val. | Ent. Val. | 1 day | 1 week | 4 weeks | |||||||||||
| 12/20/2000 | 04/12/2001 | Vitaminshoppe.com Inc. | Vitamin Shoppe Industries Inc. | $ | 7.3 | $ | 13.0 | 220.0 | % | 113.3 | % | 166.7 | % | ||||||
| 12/19/2000 | 01/31/2001 | Loislaw.com Inc. | Wolters Kluwer NV | 92.9 | 84.4 | 190.3 | 322.3 | 298.1 | |||||||||||
| 10/25/2000 | 12/22/2000 | pcOrder.com | Trilogy Software Inc. | 48.3 | 48.5 | 85.5 | 108.2 | 55.7 | |||||||||||
| 10/25/2000 | 12/29/2000 | Axcelis Technologies(Eaton) | Shareholders | 696.8 | 689.0 | ||||||||||||||
| 10/01/2000 | Detection Systems Inc. | Robert Bosch GmbH | 117.5 | 135.4 | 95.9 | 93.9 | 97.3 | ||||||||||||
| 08/11/2000 | 10/06/2000 | BI Inc. | Investor Group | 67.4 | 72.3 | 78.4 | 106.3 | 65.0 | |||||||||||
| 07/17/2000 | 08/24/2000 | CareerBuilder Inc. | Investor Group | 199.3 | 134.7 | 93.9 | 106.5 | 169.5 | |||||||||||
| 06/27/2000 | 09/29/2000 | Tech-Sym Corp. | Integrated Defense Tech | 93.0 | 154.3 | 25.0 | 23.7 | 36.4 | |||||||||||
| 06/08/2000 | 07/07/2000 | PFSweb Inc. | Shareholders | 60.8 | NA | ||||||||||||||
| 05/25/2000 | 08/01/2000 | Neoforma.com Inc. | Investor Group | 630.0 | NA | ||||||||||||||
| 04/27/2000 | 09/01/2000 | VIASOFT Inc. | Allen Systems Group | 157.4 | 119.2 | 52.7 | 46.1 | 29.9 | |||||||||||
| 03/06/2000 | 04/25/2000 | Data Transmission Network Corp. | Veronis Suhler & Assoc Commun | 467.1 | 477.3 | 16.0 | 16.6 | 52.6 | |||||||||||
| 02/25/2000 | 04/13/2000 | Spanlink Communications Inc. | Spanlink Acquisition Group | 69.5 | 69.3 | NM | 6.3 | 47.4 | |||||||||||
| 02/19/2000 | 02/19/2000 | Diehl Graphsoft Inc. | Nemetschek AG | 29.5 | 28.3 | 33.3 | 52.0 | 94.9 | |||||||||||
| 02/14/2000 | 03/29/2000 | GRC International Inc. | AT&T Corp. | 218.9 | 217.6 | 12.2 | 16.5 | 18.8 | |||||||||||
| 01/31/2000 | 05/12/2000 | ThermoQuest Corp. | Thermo Instrument Systems Inc. | 96.9 | 902.2 | ||||||||||||||
| 01/31/2000 | 05/03/2000 | Metrika Systems Corp. | Thermo Instrument Systems Inc. | 14.2 | 81.2 | ||||||||||||||
| 01/31/2000 | 04/13/2000 | ONIX Systems Inc. | Thermo Instrument Systems Inc. | 23.1 | 128.8 | ||||||||||||||
| 01/31/2000 | 04/04/2000 | Thermo Sentron Inc. (Thermedics) | Thermedics (Thermo Electron) | 30.7 | 153.5 | 7.4 | 6.9 | 6.9 | |||||||||||
| 12/21/1999 | 02/03/2000 | Micro Warehouse Inc. | Investor Group | 679.9 | 543.4 | 24.6 | 51.2 | 47.6 | |||||||||||
| 12/03/1999 | 03/23/2000 | Analogy Inc. | Avant Corp. | 24.3 | 25.0 | 32.3 | 24.0 | 16.7 | |||||||||||
| 11/15/1999 | 03/08/2000 | n-Vision Inc. | ATS Acquisitions Inc. | 1.3 | NA | ||||||||||||||
| 11/12/1999 | 02/09/2000 | Vertex Communications Corp. | TriPoint Global Communications | 116.0 | 102.5 | 48.5 | 37.5 | 71.7 | |||||||||||
| 10/26/1999 | 01/31/2000 | Watkins-Johnson Co. | Fox Paine & Co LLC | 319.0 | 334.0 | 30.0 | 29.0 | 24.6 | |||||||||||
| 10/21/1999 | 12/22/1999 | Premisys Communications Inc. | Zhone Technologies Inc. | 249.9 | 243.6 | 12.7 | 23.1 | 22.1 | |||||||||||
| 10/19/1999 | 12/10/1999 | TeleSciences Inc. | EDB AS | 17.3 | 21.8 | ||||||||||||||
| 08/24/1999 | 02/02/2000 | Aavid Thermal Technologies Inc. | Willis Stein & Partners LP | 264.1 | 245.5 | 29.1 | 23.3 | 28.7 | |||||||||||
| 07/28/1999 | 10/19/1999 | Kofax Image Products | Investor Group | $ | 70.7 | $ | 42.5 | 36.0 | % | 30.8 | % | 30.8 | % | ||||||
| 07/07/1999 | 08/31/1999 | Smartflex Systems | Saturn Electronics | 69.1 | 90.1 | 108.7 | 217.0 | 205.5 | |||||||||||
| 06/24/1999 | 12/22/1999 | Lasergate Systems Inc. | Tickets.com | 1.5 | NA | ||||||||||||||
| 05/21/1999 | 12/10/1999 | ThermoSpectra (Thermo Instr) | Thermo Instrument Systems Inc. | 26.1 | 298.2 | 39.1 | % | 43.8 | % | 61.0 | % | ||||||||
| 05/18/1999 | 08/16/1999 | Varlen Corp. | AMSTED Industries Inc. | 784.8 | 817.1 | 61.9 | 50.0 | 68.4 | |||||||||||
| 05/14/1999 | 10/29/1999 | Kentek Information Systems Inc. | Investor Group | 42.1 | 29.8 | 8.7 | 8.7 | 18.4 | |||||||||||
| 05/14/1999 | 09/02/1999 | WesTower Corp. | SpectraSite Holdings Inc. | 330.0 | NA | ||||||||||||||
| 05/12/1999 | 06/21/1999 | Optek Technology Inc. | Dyson-Kissner-Moran Corp. | 202.6 | 184.6 | 29.9 | 47.8 | 81.3 | |||||||||||
| 05/07/1999 | 09/29/1999 | Instron Corp. | Kirtland Capital Partners | 159.9 | 180.0 | 36.4 | 29.4 | 31.3 | |||||||||||
| 05/05/1999 | 09/17/1999 | Enterprise Software Inc. | LiveWire Ventures LLC | 74.0 | 69.2 | 23.3 | 25.4 | 49.5 | |||||||||||
| 05/03/1999 | 08/24/1999 | Cellular Commun of Puerto Rico | Investor Group | 867.8 | 850.6 | 24.2 | 12.9 | 7.3 | |||||||||||
| 04/05/1999 | 07/22/1999 | BancTec Inc. | Welsh Carson Anderson & Stowe | 535.5 | 497.6 | 42.3 | 33.9 | 28.1 | |||||||||||
| 03/29/1999 | 12/31/1999 | Logitek Inc. | North Atlantic Instruments Inc. | 3.3 | NA | ||||||||||||||
| 03/15/1999 | 05/30/1999 | Haskel International Inc. | Investor Group | 65.4 | 52.8 | 42.3 | 49.6 | 51.8 | |||||||||||
| 03/08/1999 | 06/24/1999 | Analysis & Technology Inc. | Anteon Corp. | 108.5 | 115.3 | 18.9 | 16.2 | 23.8 | |||||||||||
| 02/17/1999 | 08/06/1999 | Equitrac Corp. | Investor Group | 81.5 | 78.8 | 4.3 | 5.7 | 15.9 | |||||||||||
| 02/17/1999 | 07/09/1999 | Precision Systems Inc. | Anshutz Digital Media Inc. | 20.2 | 27.2 | NM | NM | NM | |||||||||||
| High | 220.0 | % | 322.3 | % | 298.1 | % | |||||||||||||
| Median | 33.3 | % | 32.4 | % | 47.5 | % | |||||||||||||
| Mean | 50.5 | % | 55.6 | % | 63.2 | % | |||||||||||||
| Low | 4.3 | % | 5.7 | % | 6.9 | % | |||||||||||||
