Exhibit (c)(5)
| Presentation to: April 21, 2003 Confidential |
| Rodman & Renshaw Table of Contents Executive Summary Section I Situation Analysis Section II Valuation Analysis Section III |
| Section I Executive Summary |
| Executive Summary Current Situation On February 18, 2003, Lexent Inc. ("Lexent") announced it had received an offer from a management group (the "Buyout Group") to purchase all the common shares of the company they do not already own for $1.25. The Buyout Group, led by Hugh O'Kane, Chairman, and Kevin O'Kane, Vice Chairman and Chief Executive Officer, currently owns approximately 52% of the common shares of Lexent. Lexent's common shares closed at $0.91 per share on February 14, 2003, the trading day immediately preceding the above announcement. Lexent is an infrastructure services company that designs, deploys and maintains fiber optic, electrical and life safety systems for telecommunications carriers and enterprise organizations. |
| Historical Operating Performance Excludes restructuring, bad debt and non-cash stock compensation expenses (in thousands) |
| Executive Summary (in thousands except per share amounts) |
| Section II Situation Analysis |
| Summary After an intense period of expansion following the deregulatory 1996 Telecom Act and the increased demand derived from the initial growth of the Internet, the telecommunications industry is undergoing a significant contraction. During the 1990s, driven by the advent of wireless and the Internet, telecom industry revenues grew at a 10% CAGR, more than twice its historical rate. Excluding the impact of bankruptcies, telecom industry revenues shrank 3% in 2002. U.S. Wireline annual capital expenditures grew three-fold to over $100 billion in 2000. Spending declined 20% in 2001, and 53% in 2002. Outlook for 2003 calls for an additional 10% retraction. Valuations for every communications related concern have retracted significantly. The NASDAQ Telecom Index is down 90% over the last three years versus declines of 70%, 40% and 23% for the NASDAQ Composite S&P500 and DOW30 respectively. TELECOM FUNDAMENTALS |
| Performance The NASDAQ Telecom Index is down 90% over the last three years versus declines of 70%, 40% and 23% for the NASDAQ Composite S&P500 and DOW30 respectively. The sell off is largely broad based with little variation from long distance providers, wireless carriers, to equipment vendors. Even the larger more stable regional bell operating companies (VZ, BLS, SBC, Q) are suffering, with earnings down 40%. TELECOM FUNDAMENTALS |
| Wireline Communications TELECOM FUNDAMENTALS 2002 US Wireline CAPx came in 55% below 2001, the outlook for 2003 does not look promising. Between 1996 and 2001, fiber miles deployed by all carriers doubled, in 2002 more fiber went dark then was lit. The bankruptcy filings by WorldCom, Global Crossing and others, coupled with high debt loads at other major carriers has sent the entire sector into a nosedive. Competitive entry following the 1996 Telecom Act has reversed. Mergers and to a larger degree bankruptcy filings has driven the number of public telcos from 48 in 1999 to 20 in 2002. 1996 1997 1998 1999 2000 2001 2002E Total US 37881 44735 54306 77387 102835 81836 38187 Y/Y Change 0.22 0.18 0.21 0.43 0.33 -0.2 -0.53 1995 1996 1997 1998 1999 2000 2001 2002 Total US 21 27 31 35 48 43 26 20 |
| ILECs TELECOM FUNDAMENTALS After growing revenues at 5% CAGR between 1996 and 2001, revenues at the incumbent local phone companies declined 3% in 2002, despite a reduction in competition and their expansion into long distance markets . Through a combination of customer spending reductions and competition, largely from resellers, ILEC phone lines in service are shrinking at a 3% annualized rate. Responding to competition, ILECs increased capital spending to $32 billion in 2000, representing 20% of revenues. In 2002, CAPx fell 38% to $18 billion or 11% of revenues - in line with historical averages. 1996 1997 1998 1999 2000 2001 2002 Total US 16471 20501 21514 26417 32158 30082 18661 Y/Y Change 0.05 0.24 0.05 0.23 0.22 -0.06 -0.38 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 Lines 199 198.4648 198.1672 197.8804 197.26 196.3084 195.1552 194.1552 Y/Y -0.003 -0.005 -0.007 -0.008 -0.009 -0.011 -0.015 -0.019 |
| IXCs TELECOM FUNDAMENTALS Heading into the Internet boom, LD competitors deployed over $200 billion in capital to lay some 60,000 route miles of new fiber. Following initial deregulation and entry of the first LD competitors (MCI et al. LD prices plummeted. As the industry consolidated and demand ramped, prices recovered briefly before the entry of next-wave fiber competitors. The convergence of oversupply, contraction in demand and price erosion, led to the Chapter 11 filings of 360, Worldcom, Global Crossing, and Williams. Remaining players remain over-levered with respect to earnings prospects. 1996 1997 1998 1999 2000 2001 2002 Total US 19893 21381 27441 42225 57222 44220 16309 Y/Y Change 0.29 0.07 0.28 0.54 0.36 -0.23 -0.63 Interstate 1984 100 1985 97 1986 87.3 1987 76.9986 1988 75.3816294 1989 74.1001417 1990 74.02604156 1991 73.06370302 1992 73.79434005 1993 76.59852497 1994 81.27103499 1995 81.35230603 1996 81.92177217 1997 88.3116704 1998 87.95842372 1999 89.98146746 2000 86.11226436 2001 79.22328321 2002 75.26211905 |
| CLECs From 1996, the year of the Telecommunications Act, to 2001, competitive local exchange carriers (CELCs) deployed $40 billion in capital expenditures. During that period CLECs raised over $50 billion in debt & Equity. At the end of 2000 34 CLECs were listed on the NASDAQ national market. CLEC revenues, which included local, long-distance, and data services grew to $12 billion in 2001, representing 5% of the total US Telecom services market. In 2001 and 2002 the majority of CLECs restructured or went out of business. Surviving entities have eliminated expansion, and have closed numerous networks. 1996 1997 1998 1999 2000 2001 2002E Total US 1024 1998 3811 6788 11394 5809 1718 Y/Y Change 1.23 0.95 0.91 0.78 0.68 -0.49 -0.7 1996 1997 1998 1999 2000 2001 2002E Revenue 2 3 5.5 8 10.4 12.3 5.08 Share 0.01 0.02 0.03 0.03 0.04 0.05 0.018 TELECOM FUNDAMENTALS |
| Information Technology Technology Fundamentals Market research firm IDC recently lowered its IT forecast for 2003 to 3.7% and lowered long-term growth expectations to 6.5% - 7% from its previous target of 8% to 9%. According to the monthly CIO Magazine survey, the IT spending outlook took a jump this year with firms reporting a 4.4% increase over the last 12 months - the first positive indicator since May 2002. Not surprisingly, network security remains a top concern for IT managers, with 53% of managers looking to spend more in that area. TTM FTM Mar 0.8 7.7 Apr -1.4 6 May 3.2 7.3 Jun 0.2 5.9 Jul 0.5 5.5 Aug -0.2 4.9 Sep -0.6 5.7 Oct -1.5 4.4 Nov -0.5 5.5 Dec -0.1 4.6 'Jan-03 4.4 5.2 'Feb -03 1.6 5.2 IT Services 31.4 Inf. Software 32.4 Telecom 34 e.business 38.7 Data Eqpt 40.3 Computers 41.7 Storage 45.8 Security 53.2 |
| Customer Concentration With 56% of revenues derived from the telecom sector, Lexent's business is highly correlated to the downturn in that market. Lexent's corporate business, 29% of revenues, is also highly correlated with the IT spending slowdown. Top 5 customer accounted for 57% of revenues. The company's two largest customers are both telecoms and are both under financial pressure. Lexent Business Conditions 2002 Enterprise 0.291 Government 0.138 Real Estate 0.009 Telecom 0.561 2002 AT&T 0.23 Level 3 0.18 IBM 0.06 MCANN 0.05 Con Ed 0.0462 Worldcom 0.028 Other 0.41 |
| Lexent Business Conditions In 2000, the company's best year, telecom accounted for 63% of revenues. Of the top six customers in 2000, four subsequently filed for chapter 11 protection |
| Lexent Business Conditions Fiber Networks Lexent's plan to build and operate a fiber ring in New York will likely meet stiff competition and very narrow margins. In addition to incumbent provider Verizon, seven competitors have already built fiber rings in New York. AT&T (through TCG) Espire Level 3 Metromedia (shown at right) Time Warner Telecom Worldcom (MFS) XO Communications |
| Lexent Growth Factors (in millions) |
| Section III Valuation Analysis |
| Comparable Company Analysis Comparable Companies: Dycom Industries, Inc. EMCOR Group, Inc. Integrated Electrical Services, Inc. MasTec, Inc. Quanta Services, Inc. Average multiples compare enterprise value with revenue, EBIT and EBITDA and market cap with book value. Lexent's negative operating earnings render a comparison on this basis not meaningful. this basis not meaningful. this basis not meaningful. this basis not meaningful. this basis not meaningful. this basis not meaningful. this basis not meaningful. this basis not meaningful. this basis not meaningful. this basis not meaningful. this basis not meaningful. this basis not meaningful. this basis not meaningful. this basis not meaningful. this basis not meaningful. |
| Comparable Transaction Analysis Analysis of nine transactions since 2000. Most recent transactions involve the acquisition of assets out of bankruptcy. Average multiples compare total consideration with revenue, EBIT and EBITDA. Lexent's negative operating earnings render a comparison on this basis not meaningful. Premiums are based on a small sample size as only three of the targets were public companies. targets were public companies. targets were public companies. targets were public companies. targets were public companies. targets were public companies. targets were public companies. targets were public companies. targets were public companies. targets were public companies. targets were public companies. targets were public companies. targets were public companies. targets were public companies. targets were public companies. |
| Premiums Paid Analysis Small Cap - Deal values between $50 and $250 million Comparable Industry - Construction firms; telecom services; electricity, gas and water distribution Majority Shareholder Acquiror - Acquiror held 50% or more of the voting stock at announcement |
| Discounted Cash Flow Lexent's annual free cash flow was estimated for 2003-2007 based on projections developed by Rodman with the Company's assistance. Terminal value in 2007 was calculated by applying a 5.5 multiple to 2007 EBITDA, as indicated by the comparable company analysis, less the balance of the restructuring reserve and long-term incentive compensation. Rodman applied discount rates between 15% and 25%. The implied price is largely driven by Lexent's current cash position and income tax receivable |
Lexent Inc.
Summary of Analysis
TRANSACTION VALUATION
| Proposed transaction price | $ | 1.25 | ||
| Shares outstanding (incl. options) | 42,601 | |||
| Equity value | $ | 53,251 | ) | |
| Plus net debt assumed | $ | (69,365 | ) | |
| Total consideration | $ | (16,114 | ) | |
| Premium to stock price | 37.4 | % | ||
Multiples | ||||
| Total consideration/: | ||||
| Revenue | NM | |||
| EBIT | NM | |||
| EBITDA | NM | |||
| Equity value/: | ||||
| Book value | 0.6 | x | ||
| Tangible net worth | 0.6 | x |
COMPARABLE COMPANY ANALYSIS
| Average | Implied | |||||||
| Multiple | Price | |||||||
| Revenue | 0.4x | $ | 2.69 | |||||
| EBIT | 8.1x | NM | ||||||
| EBITDA | 5.5x | NM | ||||||
| Book value | 0.9x | $ | 1.82 | |||||
COMPARABLE TRANSACTION ANALYSIS
| Average | Implied | |||||||
| Multiple | Price | |||||||
| Revenue | 0.6x | $ | 3.47 | |||||
| EBIT | 11.5x | NM | ||||||
| EBITDA | 5.8x | NM | ||||||
| Average | Implied | |||||||
| Premium | Price | |||||||
| 1 day before | 15.0 | % | $ | 1.05 | ||||
| 1 week before | 25.1 | % | $ | 1.14 | ||||
| 4 weeks before | 32.0 | % | $ | 1.20 | ||||
PREMIUMS PAID
| Implied | Implied | |||||||||||||||
| Average | Price | Median | Price | |||||||||||||
Small Cap. | ||||||||||||||||
| 1 day before | 43.2 | % | $ | 1.30 | 32.3 | % | $ | 1.20 | ||||||||
| 1 week before | 51.6 | % | $ | 1.38 | 36.5 | % | $ | 1.24 | ||||||||
| 4 weeks before | 57.7 | % | $ | 1.44 | 46.6 | % | $ | 1.33 | ||||||||
Comparable Industry | ||||||||||||||||
| 1 day before | 27.4 | % | $ | 1.16 | 26.8 | % | $ | 1.15 | ||||||||
| 1 week before | 32.9 | % | $ | 1.21 | 33.6 | % | $ | 1.22 | ||||||||
| 4 weeks before | 40.1 | % | $ | 1.27 | 37.5 | % | $ | 1.25 | ||||||||
Majority Shareholder Acquiror | ||||||||||||||||
| 1 day before | 35.7 | % | $ | 1.23 | 27.0 | % | $ | 1.16 | ||||||||
| 1 week before | 38.8 | % | $ | 1.26 | 34.0 | % | $ | 1.22 | ||||||||
| 4 weeks before | 45.5 | % | $ | 1.32 | 41.2 | % | $ | 1.28 | ||||||||
DISCOUNTED CASH FLOW
| Discount | Implied | ||||||||
| Rate | Price | ||||||||
| 15.0 | % | $ | 1.66 | ||||||
| 25.0 | % | $ | 1.66 | ||||||
LIQUIDATION ANALYSIS
| Implied | ||||
| Price | ||||
| Low | $ | 1.21 | ||
| High | $ | 1.46 | ||
| Rodman & Renshaw, Inc. | 1 of 18 |
Lexent Inc.
Valuation
| Prior to Announcement | Implied Transaction Valuation | |||||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||||
| Current price per share (as of 2/14/03) | $ | 0.91 | Proposed transaction price | $ | 1.25 | |||||||||||
| Fully diluted shares outstanding: | Fully diluted shares outstanding: | |||||||||||||||
| Shares outstanding | 42,205 | Shares outstanding | 42,205 | |||||||||||||
| Dilutive securities (a) | 292 | Dilutive securities (a) | 396 | |||||||||||||
| Total | 42,497 | Total | 42,601 | |||||||||||||
| Equity value | $ | 38,673 | Equity value | $ | 53,251 | |||||||||||
| Plus net debt assumed | $ | (69,365 | ) | Plus net debt assumed | $ | (69,365 | ) | |||||||||
| Total consideration | $ | (30,692 | ) | Total consideration | $ | (16,114 | ) | |||||||||
| (a) | Calculated using the treasury method. |
| Rodman & Renshaw, Inc. | 2 of 18 |
Lexent Inc.
| Comparable Company Analysis | Page 1 |
Operating Statistics
(data in thousands)
| Latest Twelve Months | ||||||||||||||||||||||||
| Fiscal | Financial | Net | Gross | Gross | ||||||||||||||||||||
| Company | Ticker | Year End | Data As Of | Revenues (a) | Profit | Margin | ||||||||||||||||||
Lexent,Inc. - At Announement | LXNT | 12/31 | 12/31/02 | $ | 123,842 | $ | (6,682 | ) | -5.4 | % | ||||||||||||||
Lexent Inc. - Transaction | LXNT | 12/31 | 12/31/02 | 123,842 | (6,682 | ) | -5.4 | % | ||||||||||||||||
| Dycom Industries, Inc. | DY | 07/27 | 01/25/03 | 613,559 | 136,594 | 22.3 | % | |||||||||||||||||
| EMCOR Group, Inc. | EME | 12/31 | 12/31/02 | 3,968,051 | 482,634 | 12.2 | % | |||||||||||||||||
| Integrated Electrical Services, Inc. | IES | 09/30 | 12/31/02 | 1,448,828 | 215,713 | 14.9 | % | |||||||||||||||||
| MasTec, Inc. | MTZ | 12/31 | 12/31/02 | 838,055 | N/A | NM | ||||||||||||||||||
| Quanta Services, Inc. | PWR | 12/31 | 12/31/02 | 1,750,713 | 236,773 | 13.5 | % | |||||||||||||||||
| Averages (j): | 15.7 | % | ||||||||||||||||||||||
[Additional columns below]
[Continued from above table, first column(s) repeated]
| Latest Twelve Months | ||||||||||||||||||||||||||||||||||||||||
| EBIT | EBITDA | Net | Net | |||||||||||||||||||||||||||||||||||||
| Company | Ticker | EBIT (b) | Margin | EBITDA (c) | Margin | Income | Margin | |||||||||||||||||||||||||||||||||
Lexent,Inc. - At Announement | LXNT | $ | (27,375 | ) | (d | ) | NM | $ | (22,588 | ) | (d | ) | NM | $ | (36,224 | ) | (e | ) | NM | |||||||||||||||||||||
Lexent Inc. - Transaction | LXNT | (27,375 | ) | (d | ) | NM | (22,588 | ) | (d | ) | NM | (36,224 | ) | (e | ) | NM | ||||||||||||||||||||||||
| Dycom Industries, Inc. | DY | 22,355 | (e | ) | 3.6 | % | 64,767 | (e | ) | 10.6 | % | 9,969 | (e | ) | 1.6 | % | ||||||||||||||||||||||||
| EMCOR Group, Inc. | EME | 114,425 | 2.9 | % | 129,796 | 3.3 | % | 62,902 | 1.6 | % | ||||||||||||||||||||||||||||||
| Integrated Electrical Services, Inc. | IES | 52,683 | (f | ) | 3.6 | % | 70,739 | (f | ) | 4.9 | % | 16,513 | (f | ) | 1.1 | % | ||||||||||||||||||||||||
| MasTec, Inc. | MTZ | 33,136 | (g | ) | 4.0 | % | 69,082 | (g | ) | 8.2 | % | 2,873 | (h | ) | 0.3 | % | ||||||||||||||||||||||||
| Quanta Services, Inc. | PWR | 76,848 | (i | ) | 4.4 | % | 133,900 | (i | ) | 7.6 | % | 23,122 | (i | ) | 1.3 | % | ||||||||||||||||||||||||
| Averages (j): | 3.7 | % | 6.6 | % | 1.4 | % | ||||||||||||||||||||||||||||||||||
| (a) | Revenues exclude interest and investment income. | |
| (b) | Earnings before interest and taxes. | |
| (c) | EBIT plus depreciation and amortization. | |
| (d) | Excludes provision for doubtful accounts of $0.1 million, impairment of goodwill of $1.5 million, restructuring charges of $9.1 million and non-cash stock compensation of $3.3 million. | |
| (e) | Excludes impairment write-off of $47.9 million and bad debt expense of $21.6 million. | |
| (f) | Excludes $1.6 million of restructuring charges. | |
| (g) | Excludes non-recurring expenses of $93.6 million and impairment of goodwill of $79.7 million. | |
| (h) | Excludes non-recurring expenses of $93.6 million, impairment of goodwill of $79.7 million and cumulative effect of accounting change of $25.7 million, net of taxes. | |
| (i) | Excludes extraordinary expenses totaling $232.4 million. | |
| (j) | Averages exclude Lexent Inc. |
| Rodman & Renshaw, Inc. | 3 of 18 |
Lexent Inc.
| Comparable Company Analysis | Page 2 |
Market and Book Value Statistics
(data in thousands, except per share amounts)
| Market Value Data | ||||||||||||||||||||
| 52-Week | ||||||||||||||||||||
| Price @ | Tot. Shares | Market | ||||||||||||||||||
| Company | High | Low | 04/17/03 | Out. (a) | Cap. (b) | |||||||||||||||
Lexent,Inc. - At Announement | $ | 3.48 | $ | 0.75 | $ | 0.91 | 42,205 | $ | 38,406 | |||||||||||
Lexent Inc. - Transaction | 3.48 | 0.75 | 1.25 | 42,205 | 52,756 | |||||||||||||||
| Dycom Industries, Inc. | 16.15 | 8.00 | 10.70 | 47,872 | 512,225 | |||||||||||||||
| EMCOR Group, Inc. | 64.35 | 43.40 | 48.44 | 16,057 | 777,794 | |||||||||||||||
| Integrated Electrical Services, Inc. | 6.49 | 3.10 | 5.59 | 41,832 | 233,842 | |||||||||||||||
| MasTec, Inc. | 8.80 | 1.31 | 2.05 | 47,990 | 98,379 | |||||||||||||||
| Quanta Services, Inc. | 18.89 | 1.75 | 3.40 | 69,550 | 236,471 | |||||||||||||||
| Averages (i): | ||||||||||||||||||||
[Additional columns below]
[Continued from above table, first column(s) repeated]
| Market Capitalization Data | Book Value Statistics | |||||||||||||||||||||||
| Common | Total Cap. | |||||||||||||||||||||||
| Total | Cash and | Enterprise | Equity at | at Book | Total Debt/ | |||||||||||||||||||
| Company | Debt (c) | Equiv. (d) | Value (e) | Book Value | Value (f) | Total Cap. | ||||||||||||||||||
Lexent,Inc. - At Announement | $ | 2,499 | $ | 74,423 | $ | (33,518 | ) | $ | 91,725 | $ | 94,224 | 2.7 | % | |||||||||||
Lexent Inc. - Transaction | 2,499 | 74,423 | (19,168 | ) | 91,725 | 94,224 | 2.7 | % | ||||||||||||||||
| Dycom Industries, Inc. | 65 | 131,375 | 380,915 | 434,521 | 434,586 | 0.0 | % | |||||||||||||||||
| EMCOR Group, Inc. | 135,181 | 93,103 | 819,872 | 489,870 | 625,051 | 21.6 | % | |||||||||||||||||
| Integrated Electrical Services, Inc. | 248,780 | 19,062 | 463,560 | 257,211 | 505,991 | 49.2 | % | |||||||||||||||||
| MasTec, Inc. | 197,435 | 30,730 | (g) | 265,084 | 273,748 | 471,183 | 41.9 | % | ||||||||||||||||
| Quanta Services, Inc. | 465,241 | 53,901 | (h) | 647,811 | 637,671 | (h) | 1,102,912 | 42.2 | % | |||||||||||||||
| Averages (i): | 31.0 | % | ||||||||||||||||||||||
| (a) | Total shares outstanding as of latest SEC filing. | |
| (b) | Market value equals current stock price times total shares outstanding. | |
| (c) | Total debt equals long-term debt (including capitalized leases), current maturities and other short-term borrowings. | |
| (d) | Includes cash, restricted cash and short-term, marketable securities. | |
| (e) | Enterprise value equals market value plus total debt plus preferred stock and minority interest less cash. | |
| (f) | Total debt plus total common equity at book value. | |
| (g) | Includes $22 million tax refund received in the first quarter of 2003. | |
| (h) | Adjusted for $26 million sale of new common stock to First Reserve in October 2002. | |
| (i) | Averages exclude Lexent Inc. |
| Rodman & Renshaw, Inc. | 4 of 18 |
Lexent Inc.
| Comparable Company Analysis | Page 3 |
Market Multiples
| Latest Twelve Months | Enterprise Value/LTM | |||||||||||||||||||||||
| Mkt. Cap./ | ||||||||||||||||||||||||
| Company | EPS | P/E | Revenues | EBIT | EBITDA | Book Value | ||||||||||||||||||
Lexent,Inc. - At Announement | $ | (0.86 | ) | NM | NM | NM | NM | 0.4x | ||||||||||||||||
Lexent Inc. - Transaction | (0.86 | ) | NM | NM | NM | NM | 0.6x | |||||||||||||||||
| Dycom Industries, Inc. | 0.20 | 52.5x | (b) | 0.6x | 17.0x | (b) | 5.9x | 1.2x | ||||||||||||||||
| EMCOR Group, Inc. | 4.07 | 11.9x | 0.2x | 7.2x | 6.3x | 1.6x | ||||||||||||||||||
| Integrated Electrical Services, Inc. | 0.41 | 13.5x | 0.3x | 8.8x | 6.6x | 0.9x | ||||||||||||||||||
| MasTec, Inc. | 0.06 | 34.2x | (b) | 0.3x | 8.0x | 3.8x | 0.4x | |||||||||||||||||
| Quanta Services, Inc. | 0.29 | 11.9x | 0.4x | 8.4x | 4.8x | 0.4x | ||||||||||||||||||
| Averages (a): | 12.4x | 0.4x | 8.1x | 5.5x | 0.9x | |||||||||||||||||||
| (a) | Averages exclude Lexent Inc. | |
| (b) | Excluded from averages. |
| Rodman & Renshaw, Inc. | 5 of 18 |
Lexent Inc.
Comparable M&A Transactions
(data in thousands)
| Purchase | Latest Twelve Month Financial Data of Target | |||||||||||||||||||||||||||||||||||||||||
| Announced | Effective | Price | Equity | Net Debt | Total | |||||||||||||||||||||||||||||||||||||
| Date | Date | Acquiror | Target | Per Share | Value | Assumed (a) | Consideration | Revenues | EBIT | EBITDA | Net Income | CFFO (b) | ||||||||||||||||||||||||||||||
| 03/20/02 | 04/15/02 | 180 Connect Inc | Viasource Communications, Inc. | N/A | N/A | N/A | $ | 44,000 | $ | 215,147 | $ | (20,430 | )(c) | $ | 2,145 | (c) | $ | (28,689 | )(c) | $ | (6,115 | )(c) | ||||||||||||||||||||
| 02/26/02 | 04/01/02 | Investor group | International FiberCom, Inc | N/A | N/A | N/A | 43,900 | 341,942 | (5,161 | )(d) | 9,155 | (d) | N/A | N/A | ||||||||||||||||||||||||||||
| 01/07/02 | 02/27/02 | Dycom Industries, Inc | Arguss Communications, Inc. | $ | 5.76 | $ | 83,779 | $ | 70,127 | 153,906 | 216,175 | 2,555 | 22,348 | (4,976 | ) | 14,817 | ||||||||||||||||||||||||||
| 11/13/00 | 11/13/00 | MagneTek, Inc | J-Tec, Inc. | N/A | 24,000 | (2,346 | ) | 21,654 | 24,419 | 4,105 | 4,432 | 2,398 | 2,725 | |||||||||||||||||||||||||||||
| 08/23/00 | 12/22/00 | Bracknell Corporation | Able Telecom Holding Corp | 2.52 | 41,342 | 84,589 | (e) | 125,932 | 458,118 | (48,253 | ) | (36,158 | ) | (52,569 | )(f) | (40,474 | )(f) | |||||||||||||||||||||||||
| 06/29/00 | 09/18/00 | InfrastruX Group, Inc | UTILX Corporation | 6.13 | 45,809 | 5,517 | 51,326 | 108,731 | 2,365 | 6,498 | 1,605 | 5,738 | ||||||||||||||||||||||||||||||
| 05/26/00 | 05/26/00 | Arguss Communications, Inc | U.S. Communications | N/A | 20,386 | 3,293 | 23,679 | 14,722 | 3,175 | 4,003 | 1,764 | 2,592 | ||||||||||||||||||||||||||||||
| 05/01/00 | 05/01/00 | Orius Corp | Hattech, Inc. | N/A | 27,838 | 1,670 | 29,508 | 31,972 | 47 | 396 | (208 | ) | 141 | |||||||||||||||||||||||||||||
| 03/09/00 | 03/09/00 | Bracknell Corporation | Sunbelt Integrated Trade Services, Inc | N/A | N/A | N/A | 127,000 | 265,800 | (g) | N/A | 27,800 | (g) | N/A | N/A | ||||||||||||||||||||||||||||
| Total Consideration to | Equity Value to | Premium to Target Stock Price | ||||||||||||||||||||||||||||||||||||||||
| Acquiror | Target | Revenues | EBIT | EBITDA | Net Income | CFFO | 1 Day | 1 Week | 4 Weeks | |||||||||||||||||||||||||||||||||
| 180 Connect Inc | Viasource Communications, Inc. | 0.2x | N/A | 20.5x | (h) | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||||||
| Investor group | International FiberCom, Inc | 0.1x | N/A | 4.8x | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||
| Dycom Industries, Inc | Arguss Communications, Inc. | 0.7x | 60.2x | (h) | 6.9x | N/A | 5.7x | 30.3 | % | 41.9 | % | 53.2 | % | |||||||||||||||||||||||||||||
| MagneTek, Inc | J-Tec, Inc. | 0.9x | 5.3x | 4.9x | 10.0x | 8.8x | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||
| Bracknell Corporation | Able Telecom Holding Corp | 0.3x | N/A | N/A | N/A | N/A | -25.2 | % | 1.0 | % | -8.2 | % | ||||||||||||||||||||||||||||||
| InfrastruX Group, Inc | UTILX Corporation | 0.5x | 21.7x | 7.9x | 28.5x | (h) | 8.0x | 39.8 | % | 32.3 | % | 50.9 | % | |||||||||||||||||||||||||||||
| Arguss Communications, Inc | U.S. Communications | 1.6x | 7.5x | 5.9x | 11.6x | 7.9x | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||
| Orius Corp | Hattech, Inc. | 0.9x | 626.4x | (h) | 74.6x | (h) | N/A | 197.8x | (h) | N/A | N/A | N/A | ||||||||||||||||||||||||||||||
| Bracknell Corporation | Sunbelt Integrated Trade Services, Inc | 0.5x | N/A | 4.6x | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||||||
| Averages: | 0.6x | 11.5x | 5.8x | 10.8x | 7.6x | 15.0 | % | 25.1 | % | 32.0 | % | |||||||||||||||||||||||||||||||
| (a) | Represents total debt less cash and cash equivalents. | |
| (b) | CFFO is equal to net income plus depreciation and amortization. | |
| (c) | Excludes impairment of intangible assets of $65.5 million and restructuring charge of $6.7 million. | |
| (d) | Excludes non-recurring impairment charges of $87.8 million. | |
| (e) | Includes value of Bracknell shares issued for litigation settlement, redeemable securities and Worldcom debt. | |
| (f) | Excludes $25.0 million litigation settlement and $12.2 million impairment of investment. | |
| (g) | As disclosed in F-4 filed by Bracknell Corporation. | |
| (h) | Excluded from averages. |
| Rodman & Renshaw, Inc. | 6 of 18 |
Lexent Inc.
Premiums Paid Analysis — Small Cap.
| Transaction Date | Stock Price Before Announcement | Premium Paid | ||||||||||||||||||||||||||||||||
| Transaction | ||||||||||||||||||||||||||||||||||
| Announced | Effective | Acquiror | Target | Price | 1 Day | Week | 4 Weeks | 1 Day | Week | 4 Weeks | ||||||||||||||||||||||||
| 01/05/02 | 04/24/02 | TIBCO Software Inc | Talarian Corp | $ | 5.30 | $ | 3.14 | $ | 2.99 | $ | 2.50 | 68.8 | % | 77.3 | % | 112.0 | % | |||||||||||||||||
| 01/07/02 | 02/27/02 | Dycom Industries Inc | Arguss Communications Inc | 5.76 | 4.42 | 4.06 | 3.76 | 30.3 | % | 41.9 | % | 53.2 | % | |||||||||||||||||||||
| 01/07/02 | 03/20/02 | Chiron Corp | Matrix Pharmaceutical Inc | 2.21 | 2.59 | 1.57 | 1.25 | -14.7 | % | 40.8 | % | 76.8 | % | |||||||||||||||||||||
| 01/25/02 | 04/10/02 | Lone Star Fund | Shoney's Inc | 0.36 | 0.39 | 0.31 | 0.28 | -7.7 | % | 16.1 | % | 28.6 | % | |||||||||||||||||||||
| 01/28/02 | 05/14/02 | Investor Group | Jenny Craig Inc | 5.30 | 3.15 | 2.85 | 3.08 | 68.3 | % | 86.0 | % | 72.1 | % | |||||||||||||||||||||
| 01/29/02 | 05/01/02 | InTown Suites Management | Suburban Lodges of America Inc | 9.04 | 8.00 | 7.73 | 6.85 | 13.0 | % | 16.9 | % | 32.0 | % | |||||||||||||||||||||
| 02/07/02 | 08/22/02 | BioMarin Pharmaceutical Inc | Glyko Biomedical Ltd | 4.14 | 6.35 | 5.50 | 7.00 | -34.8 | % | -24.7 | % | -40.9 | % | |||||||||||||||||||||
| 02/08/02 | 04/20/02 | SHL Telemedicine Ltd | Raytel Medical Corp | 10.25 | 8.00 | 8.00 | 7.65 | 28.1 | % | 28.1 | % | 34.0 | % | |||||||||||||||||||||
| 02/10/02 | 10/28/02 | JAKKS Pacific Inc | Toymax International Inc | 4.50 | 3.05 | 1.90 | 1.87 | 47.5 | % | 136.8 | % | 140.6 | % | |||||||||||||||||||||
| 02/13/02 | 05/15/02 | Investor Group | Deltek Systems Inc | 7.15 | 6.04 | 5.56 | 5.04 | 18.4 | % | 28.6 | % | 41.9 | % | |||||||||||||||||||||
| 02/14/02 | 07/26/02 | Investor Group | dick clark productions inc | 14.50 | 10.93 | 9.70 | 9.70 | 32.7 | % | 49.5 | % | 49.5 | % | |||||||||||||||||||||
| 02/20/02 | 03/22/02 | SCC Contracting Inc | Sevenson Environmental Svcs | 16.00 | 12.70 | 12.70 | 12.70 | 26.0 | % | 26.0 | % | 26.0 | % | |||||||||||||||||||||
| 02/27/02 | 05/05/02 | Baxter International Inc | Fusion Medical Technologies | 10.00 | 8.30 | 8.09 | 7.49 | 20.5 | % | 23.6 | % | 33.5 | % | |||||||||||||||||||||
| 03/11/02 | 05/23/02 | Valueclick Inc | Be Free Inc | 1.95 | 1.55 | 1.53 | 2.15 | 25.8 | % | 27.5 | % | -9.3 | % | |||||||||||||||||||||
| 03/11/02 | 06/28/02 | Chesapeake Energy Corp | Canaan Energy Corp | 18.00 | 9.75 | 9.82 | 10.05 | 84.6 | % | 83.3 | % | 79.1 | % | |||||||||||||||||||||
| 03/18/02 | 04/26/02 | Santos Ltd | Esenjay Exploration Inc | 2.84 | 2.72 | 2.77 | 2.63 | 4.4 | % | 2.5 | % | 8.0 | % | |||||||||||||||||||||
| 03/18/02 | 09/13/02 | Network Associates Inc | McAfee.com Corp | 15.43 | 15.54 | 17.40 | 16.25 | -0.7 | % | -11.3 | % | -5.0 | % | |||||||||||||||||||||
| 03/18/02 | 05/14/02 | MSC.Software Corp | Mechanical Dynamics Inc | 18.85 | 12.01 | 14.29 | 11.00 | 57.0 | % | 31.9 | % | 71.4 | % | |||||||||||||||||||||
| 03/20/02 | 07/03/02 | Schering AG | Collateral Therapeutics Inc | 11.25 | 5.09 | 4.95 | 4.25 | 121.0 | % | 127.3 | % | 164.7 | % | |||||||||||||||||||||
| 03/20/02 | 09/09/02 | S&T Bancorp Inc | Peoples Financial Corp Inc | 52.20 | 38.25 | 38.25 | 37.00 | 36.5 | % | 36.5 | % | 41.1 | % | |||||||||||||||||||||
| 03/21/02 | 08/30/02 | South Financial Group Inc | Gulf West Banks Inc | 13.95 | 13.30 | 12.90 | 11.25 | 4.9 | % | 8.1 | % | 24.0 | % | |||||||||||||||||||||
| 03/22/02 | 07/07/02 | Instrumentarium Corp | SpaceLabs Medical Inc | 14.25 | 15.45 | 15.30 | 13.00 | -7.8 | % | -6.9 | % | 9.6 | % | |||||||||||||||||||||
| 03/26/02 | 07/22/02 | RBC Centura Banks Inc | Eagle Bancshares Inc | 26.00 | 17.50 | 16.00 | 15.45 | 48.6 | % | 62.5 | % | 68.3 | % | |||||||||||||||||||||
| 04/02/02 | 06/14/02 | Kroll Inc | ONTRACK Data International | 15.51 | 9.71 | 9.50 | 8.67 | 59.7 | % | 63.3 | % | 78.9 | % | |||||||||||||||||||||
| 04/11/02 | 08/31/02 | Banknorth Group Inc | Bancorp Connecticut Inc | 28.00 | 22.85 | 22.30 | 22.50 | 22.5 | % | 25.6 | % | 24.4 | % | |||||||||||||||||||||
| 04/22/02 | 06/10/02 | IXYS Corp | Clare Inc | 5.58 | 6.08 | 4.85 | 3.36 | -8.2 | % | 15.1 | % | 66.1 | % | |||||||||||||||||||||
| 04/23/02 | 06/05/02 | Mentor Graphics Corp | Innoveda Inc | 3.95 | 2.45 | 2.36 | 2.01 | 61.2 | % | 67.4 | % | 96.5 | % | |||||||||||||||||||||
| 04/24/02 | 06/28/02 | Cadence Design Systems Inc | Simplex Solutions Inc | 14.35 | 11.63 | 10.88 | 9.94 | 23.4 | % | 31.9 | % | 44.4 | % | |||||||||||||||||||||
| 04/25/02 | 07/17/02 | Plantation Petroleum Holdings | Maynard Oil Co | 17.00 | 18.95 | 18.40 | 19.50 | -10.3 | % | -7.6 | % | -12.8 | % | |||||||||||||||||||||
| 04/29/02 | 07/31/02 | Synovus Financial Corp | Community Financial Group | 26.00 | 18.54 | 18.50 | 18.50 | 40.2 | % | 40.5 | % | 40.5 | % | |||||||||||||||||||||
| 05/02/02 | 07/31/02 | MeriStar Hotels & Resorts Inc | Interstate Hotels Corp | 5.57 | 2.61 | 2.51 | 2.58 | 113.4 | % | 121.9 | % | 115.9 | % | |||||||||||||||||||||
| 05/02/02 | 06/18/02 | Level 3 Communications Inc | Software Spectrum Inc | 37.00 | 16.64 | 16.70 | 18.50 | 122.4 | % | 121.6 | % | 100.0 | % | |||||||||||||||||||||
| 05/08/02 | 09/27/02 | Olin Corp | Chase Industries Inc | 11.52 | 14.50 | 14.00 | 11.80 | -20.6 | % | -17.7 | % | -2.4 | % | |||||||||||||||||||||
| 05/14/02 | 07/08/02 | Boston Scientific Corp | BEI Medical Systems Co | 6.84 | 5.52 | 5.07 | 5.80 | 23.9 | % | 34.9 | % | 17.9 | % | |||||||||||||||||||||
| 05/15/02 | 06/27/02 | Cardinal Health Inc | Boron LePore & Associates Inc | 16.00 | 13.33 | 12.10 | 12.20 | 20.0 | % | 32.2 | % | 31.1 | % | |||||||||||||||||||||
| 05/15/02 | 06/26/02 | Kellwood Co | Gerber Childrenswear | 6.85 | 8.25 | 6.80 | 7.60 | -17.0 | % | 0.7 | % | -9.9 | % | |||||||||||||||||||||
| 05/16/02 | 01/01/03 | NSB Holding Corp | Liberty Bancorp | 26.50 | 18.23 | 18.25 | 17.87 | 45.4 | % | 45.2 | % | 48.3 | % | |||||||||||||||||||||
| 05/21/02 | 07/25/02 | Castle Harlan Inc | Morton's Restaurant Group Inc | 17.00 | 15.23 | 15.50 | 12.98 | 11.6 | % | 9.7 | % | 31.0 | % | |||||||||||||||||||||
| 05/23/02 | 10/29/02 | SymmetriCom Inc | Datum Inc | 16.84 | 11.41 | 11.22 | 11.92 | 47.6 | % | 50.1 | % | 41.3 | % | |||||||||||||||||||||
| 05/29/02 | 08/01/02 | Openwave Systems Inc | SignalSoft Corp | 2.26 | 1.06 | 1.05 | 1.17 | 113.2 | % | 115.2 | % | 93.2 | % | |||||||||||||||||||||
| 05/30/02 | 07/31/02 | Tier Technologies Inc | Official Payments Corp | 3.00 | 2.23 | 2.08 | 2.44 | 34.5 | % | 44.2 | % | 23.0 | % | |||||||||||||||||||||
| 06/10/02 | 07/22/02 | Novell Inc | SilverStream Software Inc | 9.00 | 5.14 | 4.81 | 4.90 | 75.1 | % | 87.1 | % | 83.7 | % | |||||||||||||||||||||
| Rodman & Renshaw, Inc. | 7 of 18 |
Lexent Inc.
Premiums Paid Analysis — Small Cap.
| Transaction Date | Stock Price Before Announcement | Premium Paid | ||||||||||||||||||||||||||||||||
| Transaction | ||||||||||||||||||||||||||||||||||
| Announced | Effective | Acquiror | Target | Price | 1 Day | Week | 4 Weeks | 1 Day | Week | 4 Weeks | ||||||||||||||||||||||||
| 06/10/02 | 09/06/02 | SmartForce PLC | SkillSoft Corp | 12.67 | 15.10 | 17.62 | 17.92 | -16.1 | % | -28.1 | % | -29.3 | % | |||||||||||||||||||||
| 06/12/02 | 11/15/02 | Cornerstone Equity Investors | Vestcom International Inc | 6.25 | 4.15 | 3.80 | 3.50 | 50.6 | % | 64.5 | % | 78.6 | % | |||||||||||||||||||||
| 06/25/02 | 08/23/02 | Liberty Broadband Interactive | Wink Communications Inc | 3.00 | 2.79 | 1.87 | 2.31 | 7.5 | % | 60.4 | % | 29.9 | % | |||||||||||||||||||||
| 07/23/02 | 11/18/02 | Umpqua Holdings Corp | Centennial Bancorp | 9.35 | 7.00 | 7.49 | 7.40 | 33.6 | % | 24.8 | % | 26.4 | % | |||||||||||||||||||||
| 07/23/02 | 09/20/02 | Synopsys Inc | inSilicon Corp | 4.05 | 2.45 | 2.45 | 2.53 | 65.3 | % | 65.3 | % | 60.1 | % | |||||||||||||||||||||
| 07/26/02 | 02/28/03 | Samuel J Heyman | International Specialty Prods | 10.30 | 9.88 | 10.13 | 7.70 | 4.3 | % | 1.7 | % | 33.8 | % | |||||||||||||||||||||
| 07/26/02 | 02/07/03 | Valhi Inc | Tremont Corp | 65.21 | 33.20 | 30.39 | 29.80 | 96.4 | % | 114.6 | % | 118.8 | % | |||||||||||||||||||||
| 08/01/02 | 09/09/02 | Four Seasons Health Care Ltd | Omega Worldwide Inc | 3.32 | 2.20 | 2.05 | 2.00 | 50.9 | % | 62.0 | % | 66.0 | % | |||||||||||||||||||||
| 08/08/02 | 12/31/02 | Banknorth Group Inc | Warren Bancorp Inc | 15.75 | 10.56 | 12.25 | 12.20 | 49.1 | % | 28.6 | % | 29.1 | % | |||||||||||||||||||||
| 08/12/02 | 09/13/02 | NRT Inc | DeWolfe Cos Inc | 19.00 | 9.11 | 8.90 | 12.60 | 108.6 | % | 113.5 | % | 50.8 | % | |||||||||||||||||||||
| 08/19/02 | 11/01/02 | Berkshire Hathaway Inc | CTB International Corp | 12.75 | 14.67 | 14.73 | 12.46 | -13.1 | % | -13.4 | % | 2.3 | % | |||||||||||||||||||||
| 08/29/02 | 01/29/03 | RBC Centura Banks Inc | Admiralty Bancorp Inc | 26.00 | 23.32 | 22.99 | 21.00 | 11.5 | % | 13.1 | % | 23.8 | % | |||||||||||||||||||||
| 09/25/02 | 12/13/02 | KeyCorp | Union Bankshares Ltd | 22.63 | 13.75 | 13.00 | 13.00 | 64.6 | % | 74.1 | % | 74.1 | % | |||||||||||||||||||||
| 10/09/02 | 01/07/03 | Borland Software Corp | Starbase Corp | 2.75 | 0.80 | 0.76 | 0.83 | 243.8 | % | 261.4 | % | 231.3 | % | |||||||||||||||||||||
| 10/21/02 | 01/08/03 | King Pharmaceuticals Inc | Meridian Medical Technologies | 44.50 | 38.15 | 36.77 | 29.49 | 16.6 | % | 21.0 | % | 50.9 | % | |||||||||||||||||||||
| 10/22/02 | 12/13/02 | Microsoft Corp | Vicinity Corp | 3.33 | 2.24 | 2.24 | 2.23 | 48.7 | % | 48.7 | % | 49.3 | % | |||||||||||||||||||||
| 10/24/02 | 12/02/02 | DRS Technologies Inc | Paravant Inc | 4.75 | 3.60 | 3.50 | 3.71 | 31.9 | % | 35.7 | % | 28.0 | % | |||||||||||||||||||||
| 11/04/02 | 02/05/03 | SHPS Inc | Ebenx Inc | 4.85 | 1.97 | 1.65 | 1.67 | 146.2 | % | 193.9 | % | 190.4 | % | |||||||||||||||||||||
| 11/08/02 | 02/28/03 | Chittenden Corp | Granite State Bankshares | 46.00 | 36.88 | 35.40 | 31.38 | 24.7 | % | 29.9 | % | 46.6 | % | |||||||||||||||||||||
| 11/08/02 | 01/21/03 | Investor Group | Prophet 21 Inc | 16.30 | 13.00 | 12.00 | 9.16 | 25.4 | % | 35.8 | % | 77.9 | % | |||||||||||||||||||||
| 11/11/02 | 02/03/03 | Hyseq Pharmaceuticals Inc | Variagenics Inc | 2.22 | 0.96 | 1.04 | 0.74 | 131.3 | % | 113.6 | % | 200.0 | % | |||||||||||||||||||||
| 11/12/02 | 12/19/02 | Berwind Co LLC | Hunt Corp | 12.50 | 9.45 | 9.53 | 9.10 | 32.3 | % | 31.2 | % | 37.4 | % | |||||||||||||||||||||
| 11/14/02 | 02/10/03 | Johnson & Johnson | OraPharma Inc | 7.41 | 7.25 | 4.44 | 4.83 | 2.2 | % | 66.9 | % | 53.4 | % | |||||||||||||||||||||
| 11/21/02 | 03/06/03 | H Lundbeck A/S | Synaptic Pharmaceutical Corp | 6.50 | 6.00 | 4.00 | 4.01 | 8.3 | % | 62.5 | % | 62.1 | % | |||||||||||||||||||||
| 12/05/02 | 03/03/03 | Dun & Bradstreet Corp | Hoovers Inc | 7.00 | 5.29 | 5.58 | 5.14 | 32.3 | % | 25.4 | % | 36.2 | % | |||||||||||||||||||||
| 01/13/03 | 03/01/03 | Synopsys Inc | Numerical Technologies Inc | 7.00 | 3.70 | 3.70 | 3.10 | 89.2 | % | 89.2 | % | 125.8 | % | |||||||||||||||||||||
| 01/21/03 | 03/03/03 | Forrester Research Inc | Giga Information Group Inc | 4.75 | 1.56 | 1.73 | 1.55 | 204.5 | % | 174.6 | % | 206.5 | % | |||||||||||||||||||||
| Average: | 43.2 | % | 51.6 | % | 57.7 | % | ||||||||||||||||||||||||||||
| Median: | 32.3 | % | 36.5 | % | 46.6 | % | ||||||||||||||||||||||||||||
| Low: | -34.8 | % | -28.1 | % | -40.9 | % | ||||||||||||||||||||||||||||
| High: | 243.8 | % | 261.4 | % | 231.3 | % | ||||||||||||||||||||||||||||
| Rodman & Renshaw, Inc. | 8 of 18 |
Lexent Inc.
Premiums Paid Analysis — Comparable Industry
| Transaction Date | Stock Price Before Announcement | Premium Paid | ||||||||||||||||||||||||||||||||
| Transaction | ||||||||||||||||||||||||||||||||||
| Announced | Effective | Acquiror | Target | Price | 1 Day | Week | 4 Weeks | 1 Day | Week | 4 Weeks | ||||||||||||||||||||||||
| 01/18/99 | 06/30/99 | Vodafone Group PLC | AirTouch Communications Inc | $ | 97.52 | $ | 69.38 | $ | 64.94 | $ | 56.88 | 40.6 | % | 50.2 | % | 71.5 | % | |||||||||||||||||
| 01/29/99 | 04/19/00 | New England Electric System | Eastern Utilities Associates | 31.43 | 30.00 | 28.63 | 28.25 | 4.8 | % | 9.8 | % | 11.3 | % | |||||||||||||||||||||
| 02/01/99 | 05/21/99 | America Online Inc | MovieFone Inc | 29.25 | 25.00 | 21.25 | 16.50 | 17.0 | % | 37.6 | % | 77.3 | % | |||||||||||||||||||||
| 02/17/99 | 02/10/00 | SCANA Corp | PSNC | 33.00 | 22.75 | 22.75 | 25.00 | 45.1 | % | 45.1 | % | 32.0 | % | |||||||||||||||||||||
| 03/04/99 | 12/29/00 | UtiliCorp United Inc | St Joseph Light & Power Co | 24.15 | 16.88 | 17.00 | 17.13 | 43.1 | % | 42.1 | % | 41.0 | % | |||||||||||||||||||||
| 03/15/99 | 10/25/99 | El Paso Energy Corp | Sonat Inc | 35.75 | 30.06 | 25.75 | 25.62 | 18.9 | % | 38.8 | % | 39.5 | % | |||||||||||||||||||||
| 03/17/99 | 09/28/99 | Global Crossing Ltd | Frontier Corp | 49.20 | 44.63 | 38.63 | 34.75 | 10.3 | % | 27.4 | % | 41.6 | % | |||||||||||||||||||||
| 03/23/99 | 05/27/99 | ServiceMaster Co | American Residential Services | 5.75 | 4.38 | 3.38 | 3.44 | 31.4 | % | 70.4 | % | 67.3 | % | |||||||||||||||||||||
| 03/25/99 | 08/18/00 | Northern States Power Co | New Century Energies Inc | 42.24 | 38.69 | 39.00 | 41.25 | 9.2 | % | 8.3 | % | 2.4 | % | |||||||||||||||||||||
| 04/23/99 | 02/08/00 | Energy East Corp | Connecticut Energy | 42.00 | 31.31 | 28.00 | 25.44 | 34.1 | % | 50.0 | % | 65.1 | % | |||||||||||||||||||||
| 05/03/99 | 08/24/99 | Investor Group | Cellular Commun of Puerto Rico | 29.50 | 23.75 | 26.13 | 27.50 | 24.2 | % | 12.9 | % | 7.3 | % | |||||||||||||||||||||
| 05/05/99 | 10/29/99 | Thermo Electron Corp | Thermo Power Corp | 12.00 | 11.38 | 12.19 | 8.50 | 5.5 | % | -1.5 | % | 41.2 | % | |||||||||||||||||||||
| 05/18/99 | 10/05/99 | Metromedia International Group | PLD Telekom Inc | 2.74 | 2.75 | 2.75 | 2.75 | -0.4 | % | -0.4 | % | -0.4 | % | |||||||||||||||||||||
| 05/21/99 | 07/30/99 | Tandy Corp | AmeriLink Corp | 15.34 | 10.88 | 9.94 | 7.13 | 41.1 | % | 54.4 | % | 115.3 | % | |||||||||||||||||||||
| 05/25/99 | 04/07/00 | Investor Group | TNP Enterprises Inc | 44.00 | 34.94 | 32.94 | 32.00 | 25.9 | % | 33.6 | % | 37.5 | % | |||||||||||||||||||||
| 05/28/99 | 10/01/99 | MCI WorldCom | SkyTel Communications Inc | 19.97 | 19.31 | 20.06 | 17.13 | 3.4 | % | -0.5 | % | 16.6 | % | |||||||||||||||||||||
| 06/01/99 | 01/07/00 | Yorkshire Water PLC | Aquarion Co | 37.05 | 31.06 | 28.94 | 26.56 | 19.3 | % | 28.0 | % | 39.5 | % | |||||||||||||||||||||
| 06/01/99 | 01/14/00 | Liberty Media Group | Associated Group Inc | 67.47 | 65.00 | 65.25 | 57.88 | 3.8 | % | 3.4 | % | 16.6 | % | |||||||||||||||||||||
| 06/02/99 | 09/23/99 | Westwood One Inc | Metro Networks Inc | 52.50 | 55.50 | 57.00 | 50.06 | -5.4 | % | -7.9 | % | 4.9 | % | |||||||||||||||||||||
| 06/07/99 | 11/04/99 | Southern Union Co | Pennsylvania Enterprises Inc | 35.00 | 29.69 | 29.00 | 25.88 | 17.9 | % | 20.7 | % | 35.3 | % | |||||||||||||||||||||
| 06/11/99 | 03/31/00 | Indiana Energy Inc | SIGCORP Inc | 30.08 | 29.50 | 30.00 | 30.00 | 2.0 | % | 0.3 | % | 0.3 | % | |||||||||||||||||||||
| 06/14/99 | 06/30/00 | Qwest Commun Int Inc | US WEST Inc | 82.47 | 62.25 | 54.94 | 55.06 | 32.5 | % | 50.1 | % | 49.8 | % | |||||||||||||||||||||
| 06/15/99 | 09/01/00 | Energy East Corp | CMP Group Inc | 29.50 | 20.06 | 20.56 | 20.75 | 47.0 | % | 43.5 | % | 42.2 | % | |||||||||||||||||||||
| 06/15/99 | 03/01/00 | Northeast Utilities | Yankee Energy System Inc | 45.00 | 32.50 | 30.63 | 29.63 | 38.5 | % | 46.9 | % | 51.9 | % | |||||||||||||||||||||
| 06/23/99 | 02/28/00 | VoiceStream Wireless Corp | Omnipoint Corp | 32.23 | 20.75 | 18.00 | 17.63 | 55.3 | % | 79.1 | % | 82.9 | % | |||||||||||||||||||||
| 06/28/99 | 04/26/00 | Wisconsin Energy Corp | WICOR Inc | 31.50 | 26.56 | 24.38 | 25.50 | 18.6 | % | 29.2 | % | 23.5 | % | |||||||||||||||||||||
| 06/30/99 | 09/01/00 | Energy East Corp | CTG Resources Inc | 41.00 | 35.63 | 32.94 | 26.94 | 15.1 | % | 24.5 | % | 52.2 | % | |||||||||||||||||||||
| 07/15/99 | 11/08/00 | Eastern Enterprises | EnergyNorth Inc | 47.00 | 29.69 | 29.63 | 28.63 | 58.3 | % | 58.6 | % | 64.2 | % | |||||||||||||||||||||
| 07/19/99 | 01/06/00 | AirTouch Cellular | CommNet Cellular Inc | 31.00 | 30.25 | 32.06 | 21.43 | 2.5 | % | -3.3 | % | 44.7 | % | |||||||||||||||||||||
| 07/21/99 | 11/09/99 | Cincinnati Bell Inc | IXC Communications Inc | 49.43 | 36.25 | 37.31 | 42.00 | 36.4 | % | 32.5 | % | 17.7 | % | |||||||||||||||||||||
| 08/13/99 | 09/22/99 | Hochtief AG | Turner Corp | 28.63 | 25.31 | 27.00 | 21.25 | 13.1 | % | 6.0 | % | 34.7 | % | |||||||||||||||||||||
| 08/22/99 | 11/29/00 | Carolina Power & Light Co | Florida Progress Corp | 54.00 | 44.63 | 42.63 | 41.75 | 21.0 | % | 26.7 | % | 29.3 | % | |||||||||||||||||||||
| 08/23/99 | 11/23/99 | PSINet Inc | Transaction Network Services | 45.28 | 34.25 | 28.00 | 28.93 | 32.2 | % | 61.7 | % | 56.5 | % | |||||||||||||||||||||
| 08/23/99 | 07/27/00 | Suez Lyonnaise des Eaux SA | United Water Resources Inc | 35.00 | 31.06 | 24.13 | 23.19 | 12.7 | % | 45.1 | % | 50.9 | % | |||||||||||||||||||||
| 08/27/99 | 12/08/99 | Viatel Inc | Destia Communications Inc | 18.63 | 13.93 | 10.81 | 10.59 | 33.7 | % | 72.3 | % | 75.9 | % | |||||||||||||||||||||
| 09/20/99 | 05/01/00 | VoiceStream Wireless Corp | Aerial Communications Inc | 25.51 | 20.00 | 18.69 | 15.00 | 27.6 | % | 36.5 | % | 70.1 | % | |||||||||||||||||||||
| 09/23/99 | 10/20/00 | PECO Energy Co | Unicom Corp | 33.90 | 37.06 | 38.88 | 39.38 | -8.5 | % | -12.8 | % | -13.9 | % | |||||||||||||||||||||
| 10/05/99 | 05/31/01 | DTE Energy Co | MCN Energy Group Inc | 28.68 | 17.69 | 17.06 | 18.13 | 62.1 | % | 68.1 | % | 58.2 | % | |||||||||||||||||||||
| 10/25/99 | 03/14/00 | Investor Group | MidAmerican Energy Holdings Co | 35.05 | 27.25 | 27.63 | 28.94 | 28.6 | % | 26.9 | % | 21.1 | % | |||||||||||||||||||||
| 11/04/99 | 11/08/00 | KeySpan Corp | Eastern Enterprises | 64.00 | 51.56 | 50.38 | 48.25 | 24.1 | % | 27.0 | % | 32.6 | % | |||||||||||||||||||||
| 11/08/99 | 11/10/00 | Arch Communications Group Inc | PageNet | 0.85 | 0.97 | 1.09 | 0.75 | -12.3 | % | -22.3 | % | 13.3 | % | |||||||||||||||||||||
| Rodman & Renshaw, Inc. | 9 of 18 |
Lexent Inc.
Premium Paid Analysis — Comparable Industry
| Transaction Date | Stock Price Before Announcement | Premium Paid | ||||||||||||||||||||||||||||||||
| Transaction | ||||||||||||||||||||||||||||||||||
| Announced | Effective | Acquiror | Target | Price | 1 Day | Week | 4 Weeks | 1 Day | Week | 4 Weeks | ||||||||||||||||||||||||
| 11/15/99 | 09/28/00 | Southern Union Co | Providence Energy Corp | 42.50 | 32.88 | 31.31 | 27.88 | 29.3 | % | 35.7 | % | 52.5 | % | |||||||||||||||||||||
| 11/22/99 | 11/29/00 | Thames Water PLC | E'town Corp | 68.00 | 51.88 | 52.00 | 45.63 | 31.1 | % | 30.8 | % | 49.0 | % | |||||||||||||||||||||
| 12/01/99 | 09/20/00 | Southern Union Co | Valley Resources Inc | 25.00 | 20.50 | 18.94 | 14.25 | 22.0 | % | 32.0 | % | 75.4 | % | |||||||||||||||||||||
| 12/13/99 | 02/09/00 | Mail.com Inc | NetMoves | 9.87 | 5.50 | 5.06 | 3.94 | 79.5 | % | 95.0 | % | 150.7 | % | |||||||||||||||||||||
| 12/22/99 | 04/26/00 | GPU Inc | MYR Group Inc | 30.10 | 21.00 | 20.63 | 18.88 | 43.3 | % | 45.9 | % | 59.5 | % | |||||||||||||||||||||
| 01/10/00 | 06/19/00 | NextLink Communications Inc | Concentric Network Corp | 45.00 | 30.00 | 31.63 | 25.00 | 50.0 | % | 42.3 | % | 80.0 | % | |||||||||||||||||||||
| 01/18/00 | 01/29/01 | El Paso Energy Corp | Coastal Corp | 45.66 | 36.00 | 34.13 | 33.44 | 26.8 | % | 33.8 | % | 36.6 | % | |||||||||||||||||||||
| 01/31/00 | 08/15/00 | Thermo Electron Corp | Thermo Ecotek | 7.00 | 6.25 | 5.75 | 5.19 | 12.0 | % | 21.7 | % | 34.9 | % | |||||||||||||||||||||
| 01/31/00 | 08/25/00 | Standard Pacific Corp | Writer Corp | 3.35 | 2.25 | 1.91 | 1.50 | 48.9 | % | 75.8 | % | 123.3 | % | |||||||||||||||||||||
| 02/17/00 | 05/02/00 | Lennar Corp | US Home Corp | 36.00 | 24.88 | 25.25 | 27.06 | 44.7 | % | 42.6 | % | 33.0 | % | |||||||||||||||||||||
| 02/28/00 | 11/01/00 | NiSource Inc | Columbia Energy Group | 72.60 | 57.06 | 59.94 | 65.00 | 27.2 | % | 21.1 | % | 11.7 | % | |||||||||||||||||||||
| 02/28/00 | 12/11/00 | PowerGen PLC | LG&E Energy Corp | 24.85 | 15.75 | 15.69 | 17.00 | 57.8 | % | 58.4 | % | 46.2 | % | |||||||||||||||||||||
| 02/29/00 | 11/13/00 | TeleCorp PCS Inc | Tritel Inc | 41.04 | 24.00 | 23.63 | 26.94 | 71.0 | % | 73.7 | % | 52.4 | % | |||||||||||||||||||||
| 03/13/00 | 06/22/00 | Coachmen Industries Inc | Mod U Kraf Homes Inc | 11.75 | 5.50 | 5.50 | 5.88 | 113.6 | % | 113.6 | % | 100.0 | % | |||||||||||||||||||||
| 03/20/00 | 11/29/00 | RMI.NET Inc | Internet Communications Corp | 0.42 | 3.56 | 4.00 | 2.94 | -88.2 | % | -89.5 | % | -85.7 | % | |||||||||||||||||||||
| 06/29/00 | 10/01/00 | Infrastrux Group Inc | Utilx Corp | 6.13 | 4.38 | 4.63 | 4.06 | 40.1 | % | 32.5 | % | 50.9 | % | |||||||||||||||||||||
| 06/30/00 | 10/10/01 | NS Power Hldg Inc | Bangor Hydro-Electric Co | 26.81 | 15.00 | 15.25 | 15.13 | 78.7 | % | 75.8 | % | 77.3 | % | |||||||||||||||||||||
| 07/17/00 | 03/27/01 | AES Corp | IPALCO Enterprises Inc | 25.00 | 21.50 | 21.38 | 19.94 | 16.3 | % | 17.0 | % | 25.4 | % | |||||||||||||||||||||
| 07/24/00 | 05/31/01 | Deutsche Telekom AG | VoiceStream Wireless Corp | 93.96 | 124.94 | 117.06 | 116.87 | -24.8 | % | -19.7 | % | -19.6 | % | |||||||||||||||||||||
| 08/08/00 | 11/06/01 | FirstEnergy Corp | GPU Inc | 36.50 | 30.70 | 26.69 | 28.19 | 18.9 | % | 36.8 | % | 29.5 | % | |||||||||||||||||||||
| 08/24/00 | 12/22/00 | Bracknell Corp | Able Telcom Holding Corp | 2.52 | 3.38 | 2.50 | 2.75 | -25.3 | % | 0.8 | % | -8.4 | % | |||||||||||||||||||||
| 08/27/00 | 05/31/01 | VoiceStream Wireless Corp | Powertel Inc | 106.01 | 86.63 | 83.06 | 86.06 | 22.4 | % | 27.6 | % | 23.2 | % | |||||||||||||||||||||
| 08/28/00 | 01/24/01 | Hovnanian Enterprises Inc | Washington Homes Inc | 10.08 | 7.13 | 7.25 | 6.50 | 41.5 | % | 39.0 | % | 55.1 | % | |||||||||||||||||||||
| 09/05/00 | 07/01/01 | WorldCom Inc | Intermedia Communications Inc | 16.19 | 22.88 | 20.88 | 19.44 | -29.2 | % | -22.4 | % | -16.7 | % | |||||||||||||||||||||
| 09/05/00 | 01/31/02 | National Grid Group PLC | Niagara Mohawk Holdings Inc | 19.00 | 13.88 | 12.75 | 14.00 | 36.9 | % | 49.0 | % | 35.7 | % | |||||||||||||||||||||
| 10/02/00 | 04/25/01 | Genesis Malaysia Maju Fund | Vialog Corp | 7.19 | 8.81 | 7.88 | 8.19 | -18.4 | % | -8.7 | % | -12.2 | % | |||||||||||||||||||||
| 10/03/00 | 12/07/00 | McLeodUSA Inc | CapRock Communications Corp | 5.06 | 5.06 | 5.53 | 5.44 | 0.0 | % | -8.5 | % | -6.9 | % | |||||||||||||||||||||
| 10/12/00 | 12/31/00 | Technical Olympic USA Inc | Engle Homes Inc | 19.10 | 15.75 | 15.63 | 15.75 | 21.3 | % | 22.2 | % | 21.3 | % | |||||||||||||||||||||
| 10/27/00 | 03/16/01 | Enron Corp | Azurix Corp | 8.38 | 3.56 | 3.56 | 3.58 | 135.2 | % | 135.2 | % | 134.2 | % | |||||||||||||||||||||
| 11/03/00 | 04/02/01 | Cendant Corp | Fairfield Communities Inc | 16.00 | 13.94 | 12.50 | 10.56 | 14.8 | % | 28.0 | % | 51.5 | % | |||||||||||||||||||||
| 02/12/01 | 08/01/02 | Potomac Electric Power Company | Conectiv Inc | 25.00 | 21.00 | 18.82 | 18.38 | 19.0 | % | 32.8 | % | 36.1 | % | |||||||||||||||||||||
| 02/20/01 | 06/28/02 | Energy East Corp | RGS Energy Group | 39.37 | 33.10 | 33.10 | 30.06 | 18.9 | % | 18.9 | % | 31.0 | % | |||||||||||||||||||||
| 03/16/01 | 05/11/01 | Enbridge Inc | Midcoast Energy Resources Inc | 27.00 | 25.20 | 26.25 | 22.60 | 7.1 | % | 2.9 | % | 19.5 | % | |||||||||||||||||||||
| 04/27/01 | 07/09/01 | TransWestern Publishing Co LLC | WorldPages.com Inc | 3.00 | 2.20 | 2.35 | 1.85 | 36.4 | % | 27.7 | % | 62.2 | % | |||||||||||||||||||||
| 05/01/01 | 07/31/01 | Pulte Homes Inc | Del Webb Corp | 41.82 | 33.80 | 30.80 | 30.50 | 23.7 | % | 35.8 | % | 37.1 | % | |||||||||||||||||||||
| 09/17/01 | 01/10/03 | RWE AG | American Water Works Co Inc | 46.00 | 32.74 | 33.43 | 31.14 | 40.5 | % | 37.6 | % | 47.7 | % | |||||||||||||||||||||
| 09/24/01 | 12/12/01 | VeriSign Inc | Illuminet Holdings Inc | 35.62 | 34.98 | 34.06 | 31.48 | 1.8 | % | 4.6 | % | 13.2 | % | |||||||||||||||||||||
| 09/27/01 | 02/19/02 | Reliant Resources Inc | Orion Power Holdings Inc | 26.80 | 19.20 | 17.65 | 22.40 | 39.6 | % | 51.8 | % | 19.6 | % | |||||||||||||||||||||
| 10/08/01 | 02/15/02 | AT&T Wireless Services Inc | TeleCorp PCS Inc | 14.51 | 10.04 | 10.01 | 13.01 | 44.5 | % | 45.0 | % | 11.5 | % | |||||||||||||||||||||
| 10/23/01 | 02/22/02 | DR Horton Inc | Schuler Homes Inc | 21.96 | 12.00 | 11.82 | 12.11 | 83.0 | % | 85.8 | % | 81.3 | % | |||||||||||||||||||||
| 11/07/01 | 01/07/02 | UtiliCorp United Inc | Aquila Inc | 20.69 | 17.99 | 18.35 | 24.65 | 15.0 | % | 12.8 | % | -16.1 | % | |||||||||||||||||||||
| Rodman & Renshaw, Inc. | 10 of 18 |
Lexent Inc.
Premium Paid Analysis — Comparable Industry
| Transaction Date | Stock Price Before Announcement | Premium Paid | ||||||||||||||||||||||||||||||||
| Transaction | ||||||||||||||||||||||||||||||||||
| Announced | Effective | Acquiror | Target | Price | 1 Day | Week | 4 Weeks | 1 Day | Week | 4 Weeks | ||||||||||||||||||||||||
| 11/21/01 | 05/24/02 | D&E Communications Inc | Conestoga Enterprises Inc | 33.00 | 24.50 | 23.76 | 24.10 | 34.7 | % | 38.9 | % | 36.9 | % | |||||||||||||||||||||
| 01/07/02 | 02/27/02 | Dycom Industries Inc | Arguss Communications Inc | 5.76 | 4.42 | 4.06 | 3.76 | 30.3 | % | 41.9 | % | 53.2 | % | |||||||||||||||||||||
| 01/10/02 | 02/21/02 | US RealTel Inc | Cypress Communications Inc | 3.50 | 1.99 | 1.86 | 1.50 | 75.9 | % | 88.2 | % | 133.3 | % | |||||||||||||||||||||
| 01/30/02 | 04/17/02 | Beazer Homes USA | Crossmann Communities Inc | 46.48 | 30.23 | 30.99 | 33.00 | 53.8 | % | 50.0 | % | 40.8 | % | |||||||||||||||||||||
| 02/15/02 | 06/03/02 | Xcel Energy Inc | NRG Energy Inc | 12.86 | 10.00 | 9.60 | 13.27 | 28.6 | % | 34.0 | % | -3.1 | % | |||||||||||||||||||||
| Average: | 27.4 | % | 32.9 | % | 40.1 | % | ||||||||||||||||||||||||||||
| Median: | 26.8 | % | 33.6 | % | 37.5 | % | ||||||||||||||||||||||||||||
| Low: | -88.2 | % | -89.5 | % | -85.7 | % | ||||||||||||||||||||||||||||
| High: | 135.2 | % | 135.2 | % | 150.7 | % | ||||||||||||||||||||||||||||
| Rodman & Renshaw, Inc. | 11 of 18 |
Lexent Inc.
Premiums Paid Analysis — Majority Shareholder Acquiror
| Transaction Date | Stock Price Before Announcement | Premium Paid | ||||||||||||||||||||||||||||||||
| Transaction | ||||||||||||||||||||||||||||||||||
| Announced | Effective | Acquiror | Target | Price | 1 Day | Week | 4 Weeks | 1 Day | Week | 4 Weeks | ||||||||||||||||||||||||
| 02/24/99 | 05/21/99 | Investor Group | Industrial Scientific | $ | 28.50 | $ | 20.50 | $ | 20.38 | $ | 20.50 | 39.0 | % | 39.9 | % | 39.0 | % | |||||||||||||||||
| 03/08/99 | 12/01/99 | Investor Group | ENStar Inc | 12.50 | 8.00 | 7.88 | 8.25 | 56.3 | % | 58.7 | % | 51.5 | % | |||||||||||||||||||||
| 03/09/99 | 06/30/99 | Kerr-McGee Corp | Sun Energy Partners LP | 5.75 | 4.06 | 4.00 | 3.81 | 41.6 | % | 43.8 | % | 50.9 | % | |||||||||||||||||||||
| 03/21/99 | 07/01/99 | Viacom Inc | Spelling Entertainment Group | 9.75 | 9.00 | 6.81 | 6.31 | 8.3 | % | 43.2 | % | 54.5 | % | |||||||||||||||||||||
| 03/24/99 | 11/04/99 | Warburg, Pincus Ventures Inc | Knoll Inc | 28.00 | 15.25 | 18.44 | 19.13 | 83.6 | % | 51.9 | % | 46.4 | % | |||||||||||||||||||||
| 04/01/99 | 08/15/99 | Vivendi SA | Aqua Alliance Inc | 2.90 | 2.25 | 2.44 | 1.44 | 28.9 | % | 19.0 | % | 101.7 | % | |||||||||||||||||||||
| 04/12/99 | 06/30/99 | Investor Group | Meadowcraft Inc | 10.00 | 6.06 | 6.13 | 5.63 | 64.9 | % | 63.3 | % | 77.8 | % | |||||||||||||||||||||
| 04/29/99 | 08/09/99 | Killearn Inc | Killearn Properties Inc | 5.50 | 5.00 | 5.00 | 5.13 | 10.0 | % | 10.0 | % | 7.3 | % | |||||||||||||||||||||
| 05/05/99 | 10/29/99 | Thermo Electron Corp | Thermo Power Corp | 12.00 | 11.38 | 12.19 | 8.50 | 5.5 | % | -1.5 | % | 41.2 | % | |||||||||||||||||||||
| 05/07/99 | 07/30/99 | McDermott International Inc | J Ray McDermott SA | 35.62 | 30.50 | 31.50 | 29.87 | 16.8 | % | 13.1 | % | 19.3 | % | |||||||||||||||||||||
| 05/21/99 | 12/10/99 | Thermo Instrument Systems Inc | ThermoSpectra | 16.00 | 11.50 | 11.13 | 9.94 | 39.1 | % | 43.8 | % | 61.0 | % | |||||||||||||||||||||
| 07/13/99 | 01/07/00 | Thermo Instrument Systems Inc | Thermo Vision | 7.00 | 4.00 | 4.38 | 3.38 | 75.0 | % | 60.0 | % | 107.4 | % | |||||||||||||||||||||
| 10/20/99 | 06/06/00 | Thermo Electron Corp | Thermoretec Corp | 7.00 | 5.50 | 5.25 | 5.19 | 27.3 | % | 33.3 | % | 34.9 | % | |||||||||||||||||||||
| 11/05/99 | 11/05/99 | Discount Investment Corp | PEC Israel Economic Corp | 36.50 | 36.44 | 36.13 | 35.50 | 0.2 | % | 1.0 | % | 2.8 | % | |||||||||||||||||||||
| 11/16/99 | 09/22/00 | Thermo Electron Corp | Thermo TerraTech Inc | 6.00 | 7.13 | 6.63 | 5.38 | -15.8 | % | -9.4 | % | 11.6 | % | |||||||||||||||||||||
| 12/01/99 | 04/19/00 | Boise Cascade Corp | Boise Cascade Office Products | 16.50 | 11.50 | 10.63 | 10.31 | 43.5 | % | 55.3 | % | 60.0 | % | |||||||||||||||||||||
| 12/08/99 | 06/19/00 | Heico Companies LLC | Robertson-Ceco Corp | 11.50 | 7.88 | 8.00 | 8.13 | 46.0 | % | 43.8 | % | 41.5 | % | |||||||||||||||||||||
| 12/15/99 | 08/15/00 | Thermo Electron Corp | ThermoLase Corp | 2.73 | 2.38 | 2.13 | 1.88 | 14.9 | % | 28.5 | % | 45.6 | % | |||||||||||||||||||||
| 12/17/99 | 08/15/00 | Thermo Electron Corp | ThermoTrex Corp | 8.26 | 8.75 | 8.31 | 8.00 | -5.6 | % | -0.6 | % | 3.3 | % | |||||||||||||||||||||
| 01/19/00 | 04/19/00 | Metropolitan Life Insurance Co | Conning Corp | 12.50 | 10.81 | 9.00 | 8.22 | 15.6 | % | 38.9 | % | 52.1 | % | |||||||||||||||||||||
| 01/31/00 | 05/03/00 | Thermo Instrument Systems Inc | Metrika Systems Corp | 9.00 | 9.63 | 9.00 | 6.13 | -6.5 | % | 0.0 | % | 46.9 | % | |||||||||||||||||||||
| 01/31/00 | 04/13/00 | Thermo Instrument Systems Inc | ONIX Systems Inc | 9.00 | 8.75 | 7.75 | 6.50 | 2.9 | % | 16.1 | % | 38.5 | % | |||||||||||||||||||||
| 01/31/00 | 04/12/00 | Thermedics | Thermedics Detection Inc | 8.00 | 7.94 | 7.94 | 7.00 | 0.8 | % | 0.8 | % | 14.3 | % | |||||||||||||||||||||
| 01/31/00 | 04/20/00 | Thermo Instrument Systems Inc | Thermo BioAnalysis | 28.00 | 18.50 | 18.00 | 18.25 | 51.4 | % | 55.6 | % | 53.4 | % | |||||||||||||||||||||
| 01/31/00 | 05/12/00 | Thermo Instrument Systems Inc | Thermo Optek Corp | 15.00 | 14.06 | 15.81 | 10.63 | 6.7 | % | -5.1 | % | 41.2 | % | |||||||||||||||||||||
| 01/31/00 | 04/04/00 | Thermedics | Thermo Sentron Inc | 15.50 | 14.44 | 14.50 | 14.50 | 7.4 | % | 6.9 | % | 6.9 | % | |||||||||||||||||||||
| 01/31/00 | 05/12/00 | Thermo Instrument Systems Inc | ThermoQuest Corp | 17.00 | 12.50 | 11.56 | 10.50 | 36.0 | % | 47.0 | % | 61.9 | % | |||||||||||||||||||||
| 01/31/00 | 06/30/00 | Thermo Electron Corp | Thermedics | 10.80 | 6.13 | 5.81 | 5.31 | 76.3 | % | 85.8 | % | 103.3 | % | |||||||||||||||||||||
| 02/02/00 | 06/30/00 | Thermo Electron Corp | Thermo Instrument Systems Inc | 20.40 | 16.06 | 15.31 | 10.50 | 27.0 | % | 33.2 | % | 94.3 | % | |||||||||||||||||||||
| 03/14/00 | 06/20/00 | Alcoa Inc | Howmet International Inc | 21.00 | 18.50 | 18.63 | 18.38 | 13.5 | % | 12.8 | % | 14.3 | % | |||||||||||||||||||||
| 03/17/00 | 09/15/00 | BP Amoco PLC | Vastar Resources Inc | 83.00 | 71.44 | 61.50 | 49.00 | 16.2 | % | 35.0 | % | 69.4 | % | |||||||||||||||||||||
| 03/23/00 | 06/08/00 | Security Capital Group Inc | Homestead Village Inc | 4.10 | 2.75 | 2.63 | 2.06 | 49.1 | % | 56.2 | % | 98.8 | % | |||||||||||||||||||||
| 03/27/00 | 06/27/00 | Hartford Fin Svcs Group Inc | Hartford Life | 50.50 | 42.56 | 36.00 | 35.25 | 18.6 | % | 40.3 | % | 43.3 | % | |||||||||||||||||||||
| 04/24/00 | 07/17/00 | Investor Group | Cherry Corp | 26.40 | 13.00 | 12.63 | 15.50 | 103.1 | % | 109.1 | % | 70.3 | % | |||||||||||||||||||||
| 05/04/00 | 12/31/00 | Intermountain Industries | Petroglyph Energy Inc | 2.85 | 2.00 | 1.38 | 1.63 | 42.5 | % | 107.3 | % | 75.4 | % | |||||||||||||||||||||
| 07/09/00 | 09/14/00 | Invitrogen Corp | Life Technologies Inc | 60.00 | 49.00 | 49.00 | 50.00 | 22.4 | % | 22.4 | % | 20.0 | % | |||||||||||||||||||||
| 07/20/00 | 11/17/00 | Kennametal Inc | JLK Direct Distribution Inc | 8.75 | 5.88 | 4.50 | 5.19 | 48.9 | % | 94.4 | % | 68.7 | % | |||||||||||||||||||||
| 07/27/00 | 09/13/00 | Investor Group | Brookdale Living Communities | 15.25 | 15.00 | 14.88 | 14.56 | 1.7 | % | 2.5 | % | 4.7 | % | |||||||||||||||||||||
| 08/14/00 | 07/13/01 | News Corp Ltd | BHC Communications Inc | 165.00 | 141.75 | 145.50 | 150.00 | 16.4 | % | 13.4 | % | 10.0 | % | |||||||||||||||||||||
| 08/15/00 | 02/21/01 | Viacom Inc | Infinity Broadcasting Corp | 32.89 | 35.25 | 37.44 | 35.38 | -6.7 | % | -12.1 | % | -7.0 | % | |||||||||||||||||||||
| 08/30/00 | 01/03/01 | AXA Group | AXA Financial Inc | 54.63 | 52.25 | 49.75 | 40.69 | 4.6 | % | 9.8 | % | 34.3 | % | |||||||||||||||||||||
| 09/01/00 | 12/18/00 | Minolta Investments Co | Minolta-QMS Inc | 6.00 | 3.00 | 3.00 | 3.06 | 100.0 | % | 100.0 | % | 95.9 | % | |||||||||||||||||||||
| Rodman & Renshaw, Inc. | 12 of 18 |
Lexent Inc.
Premiums Paid Analysis — Majority Shareholder Acquiror
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| Transaction | ||||||||||||||||||||||||||||||||||
| Announced | Effective | Acquiror | Target | Price | 1 Day | Week | 4 Weeks | 1 Day | Week | 4 Weeks | ||||||||||||||||||||||||
| 09/21/00 | 03/09/01 | Ford Motor Co | Hertz Corp | 35.50 | 24.25 | 24.88 | 31.69 | 46.4 | % | 42.7 | % | 12.0 | % | |||||||||||||||||||||
| 10/25/00 | 07/31/01 | Investor Group | Uno Restaurant Corp | 9.75 | 7.31 | 6.06 | 6.81 | 33.3 | % | 60.8 | % | 43.1 | % | |||||||||||||||||||||
| 10/27/00 | 03/16/01 | Enron Corp | Azurix Corp | 8.38 | 3.56 | 3.56 | 3.58 | 135.2 | % | 135.2 | % | 134.2 | % | |||||||||||||||||||||
| 11/10/00 | 01/31/01 | HCH Acquisition Corp | Holt's Cigar Holding Inc | 5.50 | 3.50 | 3.81 | 3.56 | 57.1 | % | 44.3 | % | 54.4 | % | |||||||||||||||||||||
| 12/14/00 | 08/31/01 | O Gene Bicknell | NPC International Inc | 11.55 | 10.38 | 10.81 | 8.75 | 11.3 | % | 6.8 | % | 32.0 | % | |||||||||||||||||||||
| 12/20/00 | 04/12/01 | Vitamin Shoppe Industries Inc | Vitaminshoppe.com Inc | 1.00 | 0.31 | 0.47 | 0.38 | 220.0 | % | 113.3 | % | 166.7 | % | |||||||||||||||||||||
| 01/16/01 | 12/01/01 | Investor Group | Leslie Fay Co Inc | 5.00 | 2.88 | 2.81 | 3.13 | 73.9 | % | 77.8 | % | 60.0 | % | |||||||||||||||||||||
| 02/15/01 | 09/28/01 | Westfield America Trust | Westfield America Inc | 16.25 | 14.45 | 14.55 | 14.19 | 12.5 | % | 11.7 | % | 14.5 | % | |||||||||||||||||||||
| 03/26/01 | 08/21/01 | Credit Suisse First Boston | CSFBdirect | 6.00 | 2.50 | 2.97 | 3.45 | 140.0 | % | 102.0 | % | 73.9 | % | |||||||||||||||||||||
| 05/09/01 | 07/26/02 | Investor Group | Pierre Foods Inc | 2.50 | 1.63 | 0.97 | 1.00 | 53.8 | % | 158.1 | % | 150.0 | % | |||||||||||||||||||||
| 05/14/01 | 10/31/01 | Seneca Investments LLC | Agency.com Ltd | 3.35 | 2.05 | 2.31 | 1.28 | 63.4 | % | 45.0 | % | 161.7 | % | |||||||||||||||||||||
| 05/23/01 | 09/28/01 | Electronic Data Systems Corp | Unigraphics Solutions Inc | 32.50 | 21.25 | 19.25 | 17.98 | 52.9 | % | 68.8 | % | 80.8 | % | |||||||||||||||||||||
| 05/30/01 | 09/06/01 | Bacou SA | Bacou USA Inc | 28.50 | 23.40 | 24.30 | 25.60 | 21.8 | % | 17.3 | % | 11.3 | % | |||||||||||||||||||||
| 06/06/01 | 12/13/01 | Liberty Mutual Insurance Co | Liberty Financial Cos Inc | 33.70 | 27.00 | 24.06 | 24.00 | 24.8 | % | 40.1 | % | 40.4 | % | |||||||||||||||||||||
| 08/01/01 | 01/18/02 | Dwain Neumann | National Home Centers Inc | 1.40 | 1.11 | 1.16 | 1.05 | 26.1 | % | 20.7 | % | 33.3 | % | |||||||||||||||||||||
| 08/16/01 | 01/24/03 | Northwest Bancorp | Leeds Federal Bankshares Inc | 32.00 | 16.40 | 16.75 | 16.35 | 95.1 | % | 91.0 | % | 95.7 | % | |||||||||||||||||||||
| 08/21/01 | 02/26/02 | Thermo Electron Corp | Spectra Physics Inc | 17.50 | 13.69 | 17.61 | 19.00 | 27.8 | % | -0.6 | % | -7.9 | % | |||||||||||||||||||||
| 09/13/01 | 12/28/01 | MRV Communications Inc | Luminent Inc | 1.26 | 1.35 | 1.20 | 2.70 | -6.7 | % | 5.0 | % | -53.3 | % | |||||||||||||||||||||
| 10/01/01 | 02/13/02 | Investor Group | NCH Corp | 52.50 | 39.19 | 39.30 | 44.20 | 34.0 | % | 33.6 | % | 18.8 | % | |||||||||||||||||||||
| 10/12/01 | 03/15/02 | Liberty Media Corp | Liberty Digital | 3.23 | 2.93 | 3.13 | 4.49 | 10.2 | % | 3.2 | % | -28.1 | % | |||||||||||||||||||||
| 11/07/01 | 01/07/02 | UtiliCorp United Inc | Aquila Inc | 20.69 | 17.99 | 18.35 | 24.65 | 15.0 | % | 12.8 | % | -16.1 | % | |||||||||||||||||||||
| 02/04/02 | 03/21/02 | Limited Inc | Intimate Brands Inc | 19.72 | 17.90 | 16.72 | 15.81 | 10.2 | % | 17.9 | % | 24.7 | % | |||||||||||||||||||||
| 02/15/02 | 06/03/02 | Xcel Energy Inc | NRG Energy Inc | 12.86 | 10.00 | 9.60 | 13.27 | 28.6 | % | 34.0 | % | -3.1 | % | |||||||||||||||||||||
| 02/19/02 | 04/11/02 | Sabre Holdings Corp | Travelocity.com Inc | 28.00 | 19.20 | 19.96 | 22.86 | 45.8 | % | 40.3 | % | 22.5 | % | |||||||||||||||||||||
| 03/04/02 | 06/28/02 | IOS Brands Corp | FTD.COM INC | 3.35 | 9.00 | 8.74 | 7.79 | -62.8 | % | -61.7 | % | -57.0 | % | |||||||||||||||||||||
| 03/08/02 | 04/16/02 | Lufthansa Technik AG | Hawker Pacific Aerospace | 3.25 | 3.17 | 3.15 | 2.59 | 2.5 | % | 3.2 | % | 25.5 | % | |||||||||||||||||||||
| 03/18/02 | 09/13/02 | Network Associates Inc | McAfee.com Corp | 15.43 | 15.54 | 17.40 | 16.25 | -0.7 | % | -11.3 | % | -5.0 | % | |||||||||||||||||||||
| 04/18/02 | 02/21/03 | Investor Group | Partsbase Inc | 1.50 | 1.10 | 1.04 | 0.77 | 36.4 | % | 44.2 | % | 94.8 | % | |||||||||||||||||||||
| 05/16/02 | 08/19/02 | IPC Advisors SARL | Balanced Care Corp | 0.25 | 0.10 | 0.09 | 0.10 | 150.0 | % | 177.8 | % | 150.0 | % | |||||||||||||||||||||
| 05/31/02 | 01/17/03 | USA Interactive | Ticketmaster | 15.85 | 21.50 | 22.00 | 22.03 | -26.3 | % | -28.0 | % | -28.1 | % | |||||||||||||||||||||
| 07/26/02 | 02/07/03 | Valhi Inc | Tremont Corp | 65.21 | 33.20 | 30.39 | 29.80 | 96.4 | % | 114.6 | % | 118.8 | % | |||||||||||||||||||||
| 08/14/02 | 12/31/02 | First Banks Inc | First Banks America Inc | 40.54 | 40.35 | 41.50 | 40.09 | 0.5 | % | -2.3 | % | 1.1 | % | |||||||||||||||||||||
| 08/20/02 | 10/31/02 | Union Oil Co of California | Pure Resources Inc | 21.48 | 17.80 | 16.91 | 17.55 | 20.7 | % | 27.0 | % | 22.4 | % | |||||||||||||||||||||
| | ||||||||||||||||||||||||||||||||||
| Average: | 35.7 | % | 38.8 | % | 45.5 | % | ||||||||||||||||||||||||||||
| Median: | 27.0 | % | 34.0 | % | 41.2 | % | ||||||||||||||||||||||||||||
| Low: | -62.8 | % | -61.7 | % | -57.0 | % | ||||||||||||||||||||||||||||
| High: | 220.0 | % | 177.8 | % | 166.7 | % | ||||||||||||||||||||||||||||
| Rodman & Renshaw, Inc. | 13 of 18 |
Lexent Inc.
Discounted Cash Flow
| 2002 | 2003E | 2004E | 2005E | 2006E | 2007E | ||||||||||||||||||||
| Net income | $ | (11,763 | ) | $ | (4,765 | ) | $ | (1,069 | ) | $ | 1,540 | $ | 1,958 | ||||||||||||
| Adjustments | |||||||||||||||||||||||||
| Depreciation | 2,455 | 1,095 | 1,096 | 759 | 780 | ||||||||||||||||||||
| Non-cash stock based compensation | 3,036 | — | — | — | — | ||||||||||||||||||||
| Loss of deposit | (2,012 | ) | — | — | — | — | |||||||||||||||||||
| Changes in working capital | 17,302 | (530 | ) | (948 | ) | (716 | ) | (358 | ) | ||||||||||||||||
| Capital expenditure | (600 | ) | (800 | ) | (1,000 | ) | (1,000 | ) | (1,000 | ) | |||||||||||||||
| Debt repayment | (2,105 | ) | (394 | ) | — | — | — | ||||||||||||||||||
| Payments from restructuring | (4,053 | ) | (1,400 | ) | (1,200 | ) | (740 | ) | (750 | ) | |||||||||||||||
| Long-term incentive compensation | 600 | 600 | 600 | 600 | — | ||||||||||||||||||||
| Total adjustments | 14,623 | (1,429 | ) | (1,452 | ) | (1,097 | ) | (1,328 | ) | ||||||||||||||||
| Net cash flow from operations | 2,860 | (6,194 | ) | (2,521 | ) | 443 | 630 | ||||||||||||||||||
| Terminal value: | |||||||||||||||||||||||||
| 2007 EBITDA | 1,517 | ||||||||||||||||||||||||
| EV/EBITDA multiple | 5.5 | ||||||||||||||||||||||||
| Projected EV | 8,320 | ||||||||||||||||||||||||
| Less restructuring reserve | (2,446 | ) | |||||||||||||||||||||||
| Less incentive comp. | (3,000 | ) | |||||||||||||||||||||||
| Equity value | 2,874 | ||||||||||||||||||||||||
| Total cash flows | $ | 72,411 | $ | 2,860 | $ | (6,194 | ) | $ | (2,521 | ) | $ | 443 | $ | 3,504 | |||||||||||
| Low | High | |||||||
| Discount rate | 25.0 | % | 15.0 | % | ||||
| Equity value | $ | 70,774 | $ | 70,553 | ||||
| Price per share | $ | 1.66 | $ | 1.66 | ||||
| Rodman & Renshaw, Inc. | 14 of 18 |
Lexent Inc.
Liquidation Value
| February 28. 2003 | ||||||||||||||||||||
| Low | High | |||||||||||||||||||
| Book | ||||||||||||||||||||
| Value | % | Value | % | Value | ||||||||||||||||
| Cash | $ | 69,184 | 100 | % | $ | 69,184 | 100 | % | $ | 69,184 | ||||||||||
| Certificate of deposit | 2,001 | 0 | % | — | 0 | % | — | |||||||||||||
| Accounts receivable | 22,253 | 70 | % | 15,577 | 85 | % | 18,915 | |||||||||||||
| Retention receivable | 3,032 | 70 | % | 2,122 | 85 | % | 2,577 | |||||||||||||
| Reserve for doubtful accounts | (4,805 | ) | 100 | % | (4,805 | ) | 100 | % | (4,805 | ) | ||||||||||
| Costs and est. earnings in excess of billings | 2,191 | 30 | % | 657 | 60 | % | 1,315 | |||||||||||||
| Unbilled receivables | 204 | 70 | % | 143 | 85 | % | 173 | |||||||||||||
| Costs of uncompleted jobs | 742 | 30 | % | 223 | 60 | % | 445 | |||||||||||||
| Interest receivable | 44 | 70 | % | 31 | 100 | % | 44 | |||||||||||||
| Prepaids and other current assets | 813 | 0 | % | — | 0 | % | — | |||||||||||||
| Taxes receivable | 14,750 | 100 | % | 14,750 | 100 | % | 14,750 | |||||||||||||
| Total current assets | 110,409 | 97,882 | 102,598 | |||||||||||||||||
| PP&E, net | 3,620 | 40 | % | 1,448 | 70 | % | 2,534 | |||||||||||||
| Other assets | 865 | 0 | % | — | 50 | % | 433 | |||||||||||||
| Total assets | 114,894 | 99,330 | 105,565 | |||||||||||||||||
| Less liabilities | (26,755 | ) | (26,755 | ) | (26,755 | ) | ||||||||||||||
| Net value | 88,139 | 72,575 | 78,810 | |||||||||||||||||
| Operating losses during shutdown period | — | (8,213 | ) | (8,213 | ) | |||||||||||||||
| Severance & other termination costs | — | (4,187 | ) | (4,187 | ) | |||||||||||||||
| Lease obligations, 2004 and beyond | — | (8,568 | ) | (4,284 | ) | |||||||||||||||
| Liquidation value | 88,139 | 51,607 | 62,126 | |||||||||||||||||
| Shares outstanding | 42,601 | 42,601 | 42,601 | |||||||||||||||||
Value per share | $ | 2.07 | $ | 1.21 | $ | 1.46 | ||||||||||||||
| Rodman & Renshaw, Inc. | 15 of 18 |
Lexent Inc.
Projections
| 2002 | 2003E | 2004E | 2005E | 2006E | 2007E | ||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||||
| HOK | 91,821 | 82,639 | 85,118 | 87,672 | 90,302 | 93,011 | |||||||||||||||||||
| NNT | 33,784 | 3,410 | — | — | — | — | |||||||||||||||||||
| LSI | 4,177 | 10,466 | 12,036 | 13,239 | 14,563 | 15,292 | |||||||||||||||||||
| LMC | — | — | — | — | — | — | |||||||||||||||||||
| Intercompany | (5,937 | ) | — | — | — | — | — | ||||||||||||||||||
| Total | 123,845 | 96,515 | 97,154 | 100,911 | 104,865 | 108,302 | |||||||||||||||||||
| Direct costs: | |||||||||||||||||||||||||
| HOK | 83,168 | 67,764 | 68,775 | 69,787 | 70,797 | 72,920 | |||||||||||||||||||
| NNT | 29,297 | 2,796 | — | — | — | — | |||||||||||||||||||
| LSI | 3,400 | 7,850 | �� | 9,027 | 9,930 | 10,923 | 11,469 | ||||||||||||||||||
| LMC | — | — | — | — | — | — | |||||||||||||||||||
| Corp. | (31 | ) | — | — | — | — | — | ||||||||||||||||||
| Intercompany | (5,937 | ) | — | — | — | — | — | ||||||||||||||||||
| Total | 109,897 | 78,410 | 77,802 | 79,716 | 81,719 | 84,389 | |||||||||||||||||||
| Overhead: | |||||||||||||||||||||||||
| HOK | 16,361 | 9,917 | 9,363 | 8,767 | 9,030 | 9,301 | |||||||||||||||||||
| NNT | 2,957 | 409 | — | — | — | — | |||||||||||||||||||
| LSI | 1,313 | 1,256 | 1,324 | 1,324 | 1,311 | 1,376 | |||||||||||||||||||
| LMC | — | — | — | — | — | — | |||||||||||||||||||
| Total | 20,631 | 11,582 | 10,687 | 10,091 | 10,341 | 10,677 | |||||||||||||||||||
| Gross profit: | |||||||||||||||||||||||||
| HOK | (7,708 | ) | 4,958 | 6,980 | 9,118 | 10,475 | 10,789 | ||||||||||||||||||
| NNT | 1,530 | 205 | — | — | — | — | |||||||||||||||||||
| LSI | (536 | ) | 1,361 | 1,685 | 1,986 | 2,330 | 2,447 | ||||||||||||||||||
| LMC | — | — | — | — | — | — | |||||||||||||||||||
| Corp. | 31 | — | — | — | — | — | |||||||||||||||||||
| Intercompany | — | — | — | — | — | — | |||||||||||||||||||
| Total | (6,683 | ) | 6,524 | 8,665 | 11,104 | 12,805 | 13,236 | ||||||||||||||||||
| General & administrative | 16,031 | 14,428 | 13,707 | 12,336 | 11,719 | 11,719 | |||||||||||||||||||
| EBITDA | (22,714 | ) | (7,904 | ) | (5,042 | ) | (1,232 | ) | 1,086 | 1,517 | |||||||||||||||
| Depreciation & amortization | 4,786 | 2,455 | 1,095 | 1,096 | 759 | 780 | |||||||||||||||||||
| Non-cash stock based compensation | 3,298 | 3,036 | — | — | — | — | |||||||||||||||||||
| Restructuring charges | 9,133 | — | — | — | — | — | |||||||||||||||||||
| EBIT | (39,931 | ) | (13,395 | ) | (6,137 | ) | (2,328 | ) | 327 | 737 | |||||||||||||||
| Interest expense | 245 | 60 | 9 | — | — | — | |||||||||||||||||||
| Interest income | (1,350 | ) | (1,320 | ) | (1,372 | ) | (1,259 | ) | (1,213 | ) | (1,221 | ) | |||||||||||||
| Other expense/(income), net | 3,744 | — | — | — | — | — | |||||||||||||||||||
| Impairment of goodwill | 1,514 | — | — | — | — | — | |||||||||||||||||||
| Income before taxes | (44,084 | ) | (12,135 | ) | (4,765 | ) | (1,069 | ) | 1,540 | 1,958 | |||||||||||||||
| Provision for income tax | 6,214 | (372 | ) | — | — | — | — | ||||||||||||||||||
| Net income | (50,298 | ) | (11,763 | ) | (4,765 | ) | (1,069 | ) | 1,540 | 1,958 | |||||||||||||||
| Balance sheet items: | |||||||||||||||||||||||||
| Cash & equivalents | 72,411 | 75,271 | 69,077 | 66,556 | 67,000 | 67,630 | |||||||||||||||||||
| Restricted cash | 2,012 | — | — | — | — | — | |||||||||||||||||||
| Working capital, excl. restructuring | 25,607 | 8,305 | 8,835 | 9,783 | 10,499 | 10,857 | |||||||||||||||||||
| Sub. debt & capital leases | 2,499 | 394 | — | — | — | — | |||||||||||||||||||
| Restructuring reserve | 10,589 | 6,536 | 5,136 | 3,936 | 3,196 | 2,446 | |||||||||||||||||||
| Long-term incentive compensation | 600 | 1,200 | 1,800 | 2,400 | 3,000 | 3,000 | |||||||||||||||||||
| NOL | 19,692 | 31,828 | 36,592 | 37,661 | 36,121 | 34,163 | |||||||||||||||||||
| Rodman & Renshaw, Inc. | 16 of 18 |
Lexent Inc.
Projections
| 2002 | 2003E | 2004E | 2005E | 2006E | 2007E | ||||||||||||||||||||
| Assumptions | |||||||||||||||||||||||||
| Revenue growth rates: | |||||||||||||||||||||||||
| HOK | -10.0 | % | 3.0 | % | 3.0 | % | 3.0 | % | 3.0 | % | |||||||||||||||
| NNT | -89.9 | % | -100.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | |||||||||||||||
| LSI | 150.6 | % | 15.0 | % | 10.0 | % | 10.0 | % | 5.0 | % | |||||||||||||||
| LMC | #DIV/0! | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||||||
| Intercompany revenue % of HOK & NNT | -4.7 | % | 0.0 | % | -5.0 | % | -5.0 | % | -5.0 | % | -5.0 | % | |||||||||||||
| Direct costs: | |||||||||||||||||||||||||
| HOK | 90.6 | % | 82.0 | % | 80.8 | % | 79.6 | % | 78.4 | % | 78.4 | % | |||||||||||||
| NNT | 86.7 | % | 82.0 | % | 80.8 | % | 79.6 | % | 78.4 | % | 78.4 | % | |||||||||||||
| LSI | 81.4 | % | 75.0 | % | 75.0 | % | 75.0 | % | 75.0 | % | 75.0 | % | |||||||||||||
| LMC | #DIV/0! | #DIV/0! | 40.0 | % | 40.0 | % | 40.0 | % | 40.0 | % | |||||||||||||||
| Overhead: | |||||||||||||||||||||||||
| HOK | 17.8 | % | 12.0 | % | 11.0 | % | 10.0 | % | 10.0 | % | 10.0 | % | |||||||||||||
| NNT | 8.8 | % | 12.0 | % | 11.0 | % | 10.0 | % | 10.0 | % | 10.0 | % | |||||||||||||
| LSI | 31.4 | % | 12.0 | % | 11.0 | % | 10.0 | % | 9.0 | % | 9.0 | % | |||||||||||||
| LMC | #DIV/0! | #DIV/0! | 20.0 | % | 20.0 | % | 20.0 | % | 20.0 | % | |||||||||||||||
| G&A growth rate | -10.0 | % | -5.0 | % | -10.0 | % | -5.0 | % | 0.0 | % | |||||||||||||||
| Interest expense % (prior year) | 2.4 | % | 2.4 | % | 2.4 | % | 2.4 | % | 2.4 | % | |||||||||||||||
| Interest income % (prior year) | -1.8 | % | -1.8 | % | -1.8 | % | -1.8 | % | -1.8 | % | |||||||||||||||
| Depreciation | |||||||||||||||||||||||||
| Existing PP&E | |||||||||||||||||||||||||
| Balance, beginning | 4,033 | 1,790 | 895 | 179 | — | ||||||||||||||||||||
| Depreciation | (2,243 | ) | (895 | ) | (716 | ) | (179 | ) | — | ||||||||||||||||
| Balance, ending | 1,790 | 895 | 179 | — | — | ||||||||||||||||||||
| Gross balance | 1,790 | 1,790 | 1,790 | 1,790 | |||||||||||||||||||||
| % depreciated | 50.0 | % | 40.0 | % | 10.0 | % | 0.0 | % | |||||||||||||||||
| Maintenance capex | |||||||||||||||||||||||||
| Balance, beginning | — | 540 | 1,140 | 1,760 | 2,180 | ||||||||||||||||||||
| Additions | 600 | 800 | 1,000 | 1,000 | 1,000 | ||||||||||||||||||||
| Depreciation | (60 | ) | (200 | ) | (380 | ) | (580 | ) | (780 | ) | |||||||||||||||
| Balance, ending | 540 | 1,140 | 1,760 | 2,180 | 2,400 | ||||||||||||||||||||
| Gross balance | 600 | 1,400 | 2,400 | 3,400 | 4,400 | ||||||||||||||||||||
| Depreciable life, years | 5 | 5 | 5 | 5 | 5 | ||||||||||||||||||||
| LMC capex | |||||||||||||||||||||||||
| Balance, beginning | — | — | — | — | — | ||||||||||||||||||||
| Additions | — | — | — | — | — | ||||||||||||||||||||
| Depreciation | — | — | — | — | — | ||||||||||||||||||||
| Balance, ending | — | — | — | — | — | ||||||||||||||||||||
| Gross balance | — | — | — | — | — | ||||||||||||||||||||
| Depreciable life, years | 20 | 20 | 20 | 20 | |||||||||||||||||||||
| Capital expenditure, maintenance | 1,019 | 600 | 800 | 1,000 | 1,000 | 1,000 | |||||||||||||||||||
| Capital expenditure, LMC | — | — | — | — | — | — | |||||||||||||||||||
| Working capital as % of sales | 20.7 | % | 8.6 | % | 8.6 | % | 8.6 | % | 8.6 | % | 8.6 | % | |||||||||||||
| Rodman & Renshaw, Inc. | 17 of 18 |
Lexent Inc.
Shutdown Operating Budget
| 3/31/2003 | 4/30/2003 | 5/31/2003 | 6/30/2003 | 7/31/2003 | 8/31/2003 | 9/30/2003 | ||||||||||||||||||||||
Management Budget | ||||||||||||||||||||||||||||
| Revenue | $ | 8,043 | $ | 8,043 | $ | 8,043 | $ | 8,043 | $ | 8,043 | $ | 8,043 | $ | 8,043 | ||||||||||||||
| Direct costs | 6,534 | 6,534 | 6,534 | 6,534 | 6,534 | 6,534 | 6,534 | |||||||||||||||||||||
| Overhead | 965 | 965 | 965 | 965 | 965 | 965 | 965 | �� | ||||||||||||||||||||
| Gross profit | 544 | 544 | 544 | 544 | 544 | 544 | 544 | |||||||||||||||||||||
| General & administrative | 1,202 | 1,202 | 1,202 | 1,202 | 1,202 | 1,202 | 1,202 | |||||||||||||||||||||
| EBITDA | (659 | ) | (659 | ) | (659 | ) | (659 | ) | (659 | ) | (659 | ) | (659 | ) | ||||||||||||||
| Direct costs % | 81.2 | % | 81.2 | % | 81.2 | % | 81.2 | % | 81.2 | % | 81.2 | % | 81.2 | % | ||||||||||||||
| Overhead % | 12.0 | % | 12.0 | % | 12.0 | % | 12.0 | % | 12.0 | % | 12.0 | % | 12.0 | % | ||||||||||||||
6 Month Shutdown Plan | ||||||||||||||||||||||||||||
| Revenue | $ | 8,043 | $ | 8,043 | $ | 6,032 | $ | 4,021 | $ | 2,011 | $ | — | $ | — | ||||||||||||||
| Direct costs | 6,534 | 6,534 | 4,901 | 3,267 | 1,634 | — | — | |||||||||||||||||||||
| Overhead | 965 | 965 | 845 | 684 | 402 | — | — | |||||||||||||||||||||
| Gross profit | 544 | 544 | 287 | 71 | (25 | ) | — | — | ||||||||||||||||||||
| General & administrative | 1,202 | 1,202 | 1,202 | 902 | 601 | 301 | — | |||||||||||||||||||||
| Incremental bad debt expense | 1,206 | 1,206 | 905 | 603 | 302 | — | — | |||||||||||||||||||||
| EBITDA | (1,865 | ) | (1,865 | ) | (1,820 | ) | (1,434 | ) | (928 | ) | (301 | ) | — | |||||||||||||||
| Revenue, % of budget | 100.0 | % | 100.0 | % | 75.0 | % | 50.0 | % | 25.0 | % | 0.0 | % | 0.0 | % | ||||||||||||||
| Direct costs % | 81.2 | % | 81.2 | % | 81.2 | % | 81.2 | % | 81.2 | % | 81.2 | % | 81.2 | % | ||||||||||||||
| Overhead % | 12.0 | % | 12.0 | % | 14.0 | % | 17.0 | % | 20.0 | % | 0.0 | % | 0.0 | % | ||||||||||||||
| G&A, % of budget | 100.0 | % | 100.0 | % | 100.0 | % | 75.0 | % | 50.0 | % | 25.0 | % | 0.0 | % | ||||||||||||||
| Inc. bad debt expense, % of revenue | 15.0 | % | 15.0 | % | 15.0 | % | 15.0 | % | 15.0 | % | 15.0 | % | 15.0 | % | ||||||||||||||
[Additional columns below]
[Continued from above table, first column(s) repeated]
| 10/31/2003 | 11/30/2003 | 12/31/2003 | 1/31/2004 | 2/29/2004 | Total | |||||||||||||||||||
Management Budget | ||||||||||||||||||||||||
| Revenue | $ | 8,043 | $ | 8,043 | $ | 8,043 | $ | 8,043 | $ | 8,043 | $ | 96,515 | ||||||||||||
| Direct costs | 6,534 | 6,534 | 6,534 | 6,534 | 6,534 | 78,410 | ||||||||||||||||||
| Overhead | 965 | 965 | 965 | 965 | 965 | 11,582 | ||||||||||||||||||
| Gross profit | 544 | 544 | 544 | 544 | 544 | 6,524 | ||||||||||||||||||
| General & administrative | 1,202 | 1,202 | 1,202 | 1,202 | 1,202 | 14,428 | ||||||||||||||||||
| EBITDA | (659 | ) | (659 | ) | (659 | ) | (659 | ) | (659 | ) | (7,904 | ) | ||||||||||||
| Direct costs % | 81.2 | % | 81.2 | % | 81.2 | % | 81.2 | % | 81.2 | % | ||||||||||||||
| Overhead % | 12.0 | % | 12.0 | % | 12.0 | % | 12.0 | % | 12.0 | % | ||||||||||||||
6 Month Shutdown Plan | ||||||||||||||||||||||||
| Revenue | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 28,150 | ||||||||||||
| Direct costs | — | — | — | — | — | 22,870 | ||||||||||||||||||
| Overhead | — | — | — | — | — | 3,861 | ||||||||||||||||||
| Gross profit | — | — | — | — | — | 1,420 | ||||||||||||||||||
| General & administrative | — | — | — | — | — | 5,410 | ||||||||||||||||||
| Incremental bad debt expense | — | — | — | — | — | 4,223 | ||||||||||||||||||
| EBITDA | — | — | — | — | — | (8,213 | ) | |||||||||||||||||
| Revenue, % of budget | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||||
| Direct costs % | 81.2 | % | 81.2 | % | 81.2 | % | 81.2 | % | 81.2 | % | ||||||||||||||
| Overhead % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||||
| G&A, % of budget | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||||
| Inc. bad debt expense, % of revenue | 15.0 | % | 15.0 | % | 15.0 | % | 15.0 | % | 15.0 | % | ||||||||||||||
| Rodman & Renshaw, Inc. | 18 of 18 |