EXHIBIT 17(b)(4)
- --------------------------------------------------------------------------------
PRESENTATION TO
THE SPECIAL COMMITTEE OF
THE
BOARD OF DIRECTORS
OF
WONDER
JANUARY 4, 1996
_____________________________________________________________________________DLJ
DONALDSON, LUFKIN & JENRETTE
PROJECT WONDER DRAFT
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
EXHIBIT
TRANSACTION SUMMARY........................................ 1
VALUATION ANALYSES......................................... 2
PROFILE OF TOM............................................. 3
PROFILE OF THE COMBINED COMPANY............................ 4
Note: All projections and estimates of future events are strictly those of,
and the following analyses are based upon financial and other information
provided to DLJ by, Wonder, Tom and their respective managements.
_____________________________________________________________________________DLJ
DONALDSON, LUFKIN & JENRETTE
PROJECT WONDER DRAFT
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TRANSACTION SUMMARY
_____________________________________________________________________________DLJ
DONALDSON, LUFKIN & JENRETTE
PROJECT WONDER
- --------------------------------------------------------------------------------
TRANSACTION OVERVIEW
. Merge Tom with a wholly-owned subsidiary of Wonder
. Tom's Class A shareholders receive $30 per share (aggregate consideration
of $40.5 million) in Wonder Common Stock or cash, at their option
. On account of all of his equity and voting interests in Tom, Trump
receives aggregate consideration of $40.5 million in Wonder Common Stock
equivalents
. Tom's Class B shares are redeemed for $0.50 per share in cash (aggregate
consideration of $0.4 million)
. Trump receives warrants to purchase 600,000 shares of Wonder Common Stock
at a $30.00 strike price (three-year term), 600,000 shares of Wonder
Common Stock at a $35.00 strike price (four-year term) and 600,000 shares
of Wonder Common Stock at a $40.00 strike price (five-year term)
. Purchase land held by Trump Realty and remove First Fidelity contingent
liability and receive releases with payment of $50 million in cash and
500,000 shares of Wonder Common Stock
. Pay $10 million cash to BT on behalf of Trump for consent and releases by
BT
. Refinance Tom Mortgage Bonds with $750 million First Mortgage Note
offering
. Raise $100 million in Wonder public equity offering
. Trump management fee at Tom eliminated
_____________________________________________________________________________DLJ
DONALDSON, LUFKIN & JENRETTE
-1-
PROJECT WONDER
- --------------------------------------------------------------------------------
SOURCES AND USES
($ in millions)
SOURCES OF FUNDS USES OF FUNDS
-------------------------------------------- ---------------------------------------
Cash Sources Cash Uses
------------ ---------
Excess Cash /(1)/ $44.2 Payment to First Fidelity $50.0
New First Mortgage Notes 750.0 Payment to BT 10.0
Additional Equity Issued to Public 100.0 Retire First Mortgage Bonds 793.8
-----
Purchase Class B Shares 0.4
Transaction Fees and Expenses 40.0
----
Total Cash Sources 894.2 Total Cash Uses 894.2
Non-Cash Sources Non-Cash Uses
---------------- -------------
Equity Issued to Taj Class A /(2)/ 40.5 Purchase Class A and C Shares 81.0
Equity Issued to Taj Class C 40.5 Equity to First Fidelity /(3)/ 10.0
----
Equity to First Fidelity 10.0
----
Total Sources $985.2 Total Uses $985.2
===== =====
________________________________________
(1) Although Tom will have $55.0 million of excess cash, only $44 million will
be used in the Acquisition in order to provide a working capital cushion.
(2) Assumes Class A shareholders will receive Wonder stock in the Acquisition.
(3) Assumes $20.00 Wonder stock price.
_____________________________________________________________________________DLJ
DONALDSON, LUFKIN & JENRETTE
-2-
PROJECT WONDER
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ADDITIONAL POTENTIAL USES
. Trump Indiana additional capital expenditures
- $25 million required to fund permanent facility /(1)/
. Refinance Natwest loan
- $44.9 million aggregate principal amount
. Exercise Trump Plaza East option
- Current exercise price of $28 million
. Fund Tom expansion
__________________________________________
(1) Assumes $10 million of gaming equipment financing available.
_____________________________________________________________________________DLJ
DONALDSON, LUFKIN & JENRETTE
-3-
PROJECT WONDER
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OWNERSHIP SUMMARY /(1)/
POST
ACQUISITION /(2)/
POST & EQUITY
ACQUISITION/(2)/ OFFERING &
PRE-ACQUISITION POST & EQUITY TRUMP
------------------------
WONDER TOM ACQUISITION /(2)/ OFFERING WARRANTS
------------ ----------- -------------------- ------------------ -------------------
Trump.......................... 39.8% 50.0% 40.7% 33.0% 37.7%
Class A........................ - 50.0% 9.5% 7.7% 7.1%
Public......................... 60.2% - 47.5% 57.4% 53.4%
First Fidelity................. - - 2.3% 1.9% 1.8%
----- ----- ---- ---- ----
Total.......................... 100.0% 100.0% 100.0% 100.0% 100.0%
________________________________________
(1) Assumes $20.00 Wonder stock price and $100mm primary equity offering.
(2) Assumes Tom's Class A shareholders receive Wonder stock.
_____________________________________________________________________________DLJ
DONALDSON, LUFKIN & JENRETTE
-4-
PROJECT WONDER
- --------------------------------------------------------------------------------
CAPITALIZATION SUMMARY
($ in millions)
PRO
ESTIMATED AT 12/31/95 FORMA % OF TOTAL
---------------------------
WONDER TOM COMBINED CAPITALIZATION
----------- ------------ ---------- ----------------
Excess Cash.................................... $15.1 $55.0 $26.0 --
Cage/Restricted Cash........................... 12.0 25.0 37.0 --
---- ---- ---- ==
Total Cash..................................... $27.2 $80.0 $63.0 --
===== ===== ===== ==
Long-Term Debt:
Tom NatWest Loan.............................. $0.0 $44.9 $44.9 3.1%
Tom 11.35% First Mortgage Bonds............... 0.0 793.8/(1)/ 0.0 0.0
Wonder 10.88% First Mortgage Bonds............ 330.0 0.0 330.0 22.8
Wonder 15.50% Senior Secured Notes............ 155.0 0.0 155.0 10.7
New First Mortgage Notes...................... 0.0 0.0 750.0 51.8
Other Debt.................................... 13.9 1.2 15.1 1.1
----- ----- ------- -----
Total Long-Term Debt....................... 499.0 839.9 1,295.0 89.5
Equity......................................... 49.2 (84.6)/(2)/ 152.7 10.5
---- ----- ----- ----
Total Capitalization........................... $548.2 $755.3 $1,447.8 100.0%
====== ====== ========
Contingent Liabilities
First Fidelity................................ $0.0 $30.0/(3)/ $0.0 --
____________________________
(1) Includes accrued PIK interest through March 31, 1996.
(2) Gives effect to loss associated with redemption of First Mortgage Bonds.
(3) Currently booked on Tom's balance sheet at $17 million which represents the
present value of the obligation.
_____________________________________________________________________________DLJ
DONALDSON, LUFKIN & JENRETTE
-5-
PROJECT WONDER
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PURCHASE PRICE SUMMARY
($ in millions)
EXCLUDING INCLUDING
FEES FEES
--------- ---------
Purchase Equity.............................. $81.4 $81.4
Assumed Value of Warrants to Trump/(1)/ ..... 7.4 7.4
--- ---
Equity Purchase Price...................... 88.8 88.8
Payment to First Fidelity:
Cash....................................... 50.0 50.0
Equity/(2)/................................ 10.0 10.0
Payment to BT................................ 10.0 10.0
Retire Old First Mortgage Bonds/(3)/......... 793.8 793.8
Assume NatWest Loan.......................... 44.9 44.9
Transaction Fees and Expenses................ 0.0 40.0
Less: Excess Cash on Hand.................... (55.0) (55.0)
------ ------
Enterprise Value.......................... $942.5 $982.5
===== =====
____________________
(1) Black-Scholes analysis used to value Trump warrants. Assumed volatility of
35%.
(2) Assumes $20.00 Wonder stock price.
(3) Includes accrued PIK interest through March 31, 1996.
_____________________________________________________________________________DLJ
DONALDSON, LUFKIN & JENRETTE
-6-
SUMMARY PURCHASES PRICE MULTIPLES
($ in millions)
PURCHASE PRICE PURCHASE PRICE
MULTIPLES MULTIPLES
TOM FINANCIAL RESULTS INCLUDING FEES EXCLUDING FEES
---------------------------------- -------------------------------- -------------------------------
EXCLUDING INCLUDING EXCLUDING INCLUDING EXCLUDING INCLUDING
SYNERGIES SYNERGIES/(1)/ SYNERGIES SYNERGIES/(1)/ SYNERGIES SYNERGIES/(1)/
-------------- ------------------ --------------- ---------------- --------------- ---------------
1995 ESTIMATED
- --------------
Revenues................ $559.6 $559.6 1.8x 1.8x 1.7x 1.7x
EBITDA.................. 138.2 156.5 7.1 6.3 6.8 6.0
EBIT.................... 94.3 112.6 10.4 8.7 10.0 8.4
Book Value.............. 40.3 -- 2.2 -- 2.2 --
1996 BUDGET
- -----------
Revenues............... $583.4 $583.4 1.7x 1.7x 1.6x 1.6x
EBITDA................. 161.0 179.3 6.1 5.5 5.9 5.3
EBIT................... 112.8 131.1 8.7 7.5 8.4 7.2
Book Value............. -- -- -- -- -- --
__________________
(1) Assumes $18.3 million in synergies expected to be achieved in FY 1997.
_____________________________________________________________________________DLJ
DONALDSON, LUFKIN & JENRETTE
-7-
PROJECT WONDER
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STRATEGIC RATIONALE
. Creates one of the largest gaming companies in the United States
. Significant presence in growing Atlantic City market
- Combined company will have approximately one-quarter of Atlantic
City's hotel rooms, gaming space, slots and tables
. Alleviates Trump conflict-of-interest concerns
. $20.6 million in expected annual cost savings in FY 1998
. Provides critical mass necessary to compete effectively for new gaming
licenses
. Extends maturity of Tom long-term debt to allow for expansion plan
_____________________________________________________________________________DLJ
DONALDSON, LUFKIN & JENRETTE
-8-
PROJECT WONDER
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VALUATION ANALYSES
_____________________________________________________________________________DLJ
DONALDSON, LUFKIN & JENRETTE
PROJECT WONDER
- --------------------------------------------------------------------------------
VALUATION RELATIVE TO PROPOSAL
. Methodologies
- Comparable companies analysis
- Comparable M&A transactions analysis
- Discounted cash flow analysis
- Contribution analysis
_____________________________________________________________________________DLJ
DONALDSON, LUFKIN & JENRETTE
-1-
PROJECT WONDER
- --------------------------------------------------------------------------------
PUBLIC COMPANY COMPARABLE ANALYSIS
($ in millions)
IMPLIED TOM MULTIPLES IMPLIED TOM MULTIPLES
TOM INCLUDING FEES EXCLUDING FEES COMPARABLE COMPANY
---------------------------- --------------------------
FINANCIAL EXCLUDING INCLUDING EXCLUDING INCLUDING MULTIPLES/1)/
-----------------------
RESULTS/2)/ SYNERGIES SYNERGIES/(3)/ SYNERGIES SYNERGIES/3)/ LOW AVERAGE HIGH BALLY ENT.
------------- ----------- --------------- ------------------------- ----- -------- ------ ------------
ENTERPRISE VALUE/
LTM Revenues............... $559.6 1.8x 1.8x 1.7x 1.7x 0.8x 1.7x 2.6x 1.9x
LTM EBITDA................. 138.2 7.1 6.3 6.8 6.0 4.5 7.4 11.2 7.1
LTM EBIT................... 94.3 10.4 8.7 10.0 8.4 6.0 10.9 17.3 10.1
1996P EBITDA............... 161.0 6.1 5.5 5.9 5.3 4.1 6.3 8.4 6.0
PRICE/
1995P Net Income........... NM NM NM NM NM 6.8x 21.7x 41.4x 23.3X
1996P Net Income........... NM NM NM NM NM 6.1 14.8 28.6 17.7
Book Value................. 40.3 2.2 -- 2.2 -- 0.8 2.4 4.1 1.4
______________________________
(1) Comparable casino hotel companies includes Harrah's Entertainment, Bally
Entertainment, Rio Hotels, Showboat, Aztar, Griffin Gaming, Hollywood
Casinos, Mirage, MGM Grand and Stratosphere.
(2) Tom LTM results represent estimated FY1995, excluding synergies.
(3) Assumes $18.3 million in synergies expected to be achieved in FY 1997.
_____________________________________________________________________________DLJ
DONALDSON, LUFKIN & JENRETTE
-2-
PROJECT WONDER
- --------------------------------------------------------------------------------
COMPARABLE MERGER AND ACQUISITIONS VALUATION ANALYSIS
($ in millions)
IMPLIED TOM MULTIPLES IMPLIED TOM MULTIPLES AVERAGE AVERAGE
TOM INCLUDING FEES EXCLUDING FEES CASINO SINGLE ITT-
--------------------------- --------------------------
FINANCIAL EXCLUDING INCLUDING EXCLUDING INCLUDING RESORT PROPERTY CAESARS
RESULTS/(1)/ SYNERGIES SYNERGIES/(2)/ SYNERGIES SYNERGIES/(2)/ MULTIPLES/(3)/ MULTIPLES/(3)/ MULTIPLE
------------- ---------- --------------- ---------- -------------- -------------- --------------- ---------
ENTERPRISE VALUE/
LTM Revenues $559.6 1.8x 1.8x 1.7x 1.7x 1.6x 1.4x 1.8x
LTM EBITDA 138.2 7.1 6.3 6.8 6.0 8.7 8.4 9.1
LTM EBIT 94.3 10.4 8.7 10.0 8.4 12.2 11.0 13.5
EQUITY VALUE/
1995P Net Income NM NM NM NM NM -- -- 23.3x
Book Value 40.3 2.2 -- 2.2 -- -- -- 2.9
____________________
(1) Tom LTM results represent estimated FY 1995, excluding synergies.
(2) Assumes $18.3 million in synergies expected to be achieved in FY
(3) Average excludes high and low.
_____________________________________________________________________________DLJ
DONALDSON, LUFKIN & JENRETTE
-3-
PROJECT WONDER
- --------------------------------------------------------------------------------
DISCOUNTED CASH FLOW VALUATION
($ in millions)
ENTERPRISE VALUES WITH TOM EXPANSION
- ------------------------------------
WEIGHTED AVERAGE COST OF CAPITAL
--------------------------------------------------------------------------------
8.0% 9.0% 10.0% 11.0% 12.0% 13.0%
------------ ------------ ------------- ------------ ----------- ------------
5.0X $1,417.0 $1,357.5 $1,301.0 $1,247.5 $1,196.8 $1,148.6
TERMINAL 6.0 1,636.0 1,566.6 1,500.9 1,438.5 1,379.4 1,323.3
EBITDA 7.0 1,855.1 1,775.8 1,700.7 1,629.5 1,562.0 1,497.9
MULTIPLE 8.0 2,074.1 1,985.0 1,900.5 1,820.5 1,744.6 1,672.6
9.0 2,293.1 2,194.1 2,100.4 2,011.5 1,927.2 1,847.3
10.0 2,512.2 2,403.3 2,300.2 2,202.5 2,109.9 2,022.0
_____________________________________________________________________________DLJ
DONALDSON, LUFKIN & JENRETTE
-4-
PROJECT WONDER
- --------------------------------------------------------------------------------
DISCOUNTED CASH FLOW VALUATION (CONT'D)
($ in millions)
ENTERPRISE VALUES WITHOUT TOM EXPANSION
- ---------------------------------------
WEIGHTED AVERAGE COST OF CAPITAL
-------------------------------------------------------------------------
8.0% 9.0% 10.0% 11.0% 12.0% 13.0%
------------ ----------- --------- ---------- ----------- ----------
5.0X $1,148.5 $1,104.0 $1,061.8 $1,021.6 $983.5 $947.2
TERMINAL 6.0 1,298.3 1,247.0 1,198.4 1,152.2 1,108.4 1,066.7
EBITDA 7.0 1,448.0 1,390.0 1,335.0 1,282.8 1,233.2 1,186.1
MULTIPLE 8.0 1,597.8 1,533.0 1,471.6 1,413.4 1,358.1 1,305.5
9.0 1,747.5 1,676.1 1,608.3 1,544.0 1,482.9 1,424.9
10.0 1,897.3 1,819.1 1,744.9 1,674.5 1,607.8 1,544.4
_____________________________________________________________________________DLJ
DONALDSON, LUFKIN & JENRETTE
-5-
PROJECT WONDER
- --------------------------------------------------------------------------------
CONTRIBUTION ANALYSIS
RELATIVE ENTERPRISE VALUATION CONTRIBUTION:
INCLUDING FEES EXCLUDING FEES
- ------------------------------------- ----------------------------------------
Wonder...............46.7% Wonder..............47.8%
Tom..................53.3% Tom................52.2%
PROJECTED
----------------------------------------------
1995 1996 1997
------------- ------------ -----------
REVENUES:
Wonder........................ 37.3% 51.5% 54.2%
Tom........................... 62.7% 48.5% 45.8%
EBITDA:
Wonder........................ 34.4% 46.6% 49.0%
Tom........................... 65.6% 53.4% 51.0%
EBIT:
Wonder........................ 37.0% 50.2% 50.0%
Tom........................... 63.0% 49.8% 50.0%
NET INCOME:
Wonder........................ NM NM NM
Tom........................... NM NM NM
BOOK VALUE:
Wonder........................ 45.0% -- --
Tom........................... 55.0% -- --
_____________________________________________________________________________DLJ
DONALDSON, LUFKIN & JENRETTE
-6-
PROJECT WONDER
- --------------------------------------------------------------------------------
PROFILE OF TOM
_____________________________________________________________________________DLJ
DONALDSON, LUFKIN & JENRETTE
PROJECT WONDER
- --------------------------------------------------------------------------------
TOM CORPORATE PROFILE
. Largest casino hotel facility in Atlantic City
. Since commencing operations in 1990:
- #1 in total gaming revenue
- #1 in table revenues
- #1 in slot revenues
. Top performer in the Atlantic City market in terms of Revenues and
EBITDA
. First class hotel and entertainment facilities
. Expansion plan provides upside significant potential
_____________________________________________________________________________DLJ
DONALDSON, LUFKIN & JENRETTE
-1-
PROJECT WONDER
- --------------------------------------------------------------------------------
TOM SUMMARY HISTORICAL FINANCIAL INFORMATION
($ in millions)
FISCAL YEAR ENDED DECEMBER 31, LTM
-----------------------------------------
1992 1993 1994/(1)/ 10/31/95
------------ ------------ ------------- -------------
Net Revenues.......................... $469.8 $498.9 $517.2 $555.0
Growth.............................. 7.2% 6.2% 3.7% --
EBITDA /(2)/.......................... 107.0 124.1 120.1 139.7
Margin.............................. 22.8% 24.9% 23.2% 25.2%
EBIT.................................. 68.0 84.5 76.6 --
Margin.............................. 14.5% 16.9% 14.8% --
Cash Interest Expense................. -- -- -- 78.3
Total Interest Expense................ -- -- -- 117.3
Capital Expenditures.................. 12.1 16.8 23.0 25.3
Total Debt (Face)..................... -- -- -- 826.1
Total Debt + Contingent Liabilities... -- -- -- 826.1
______________________________
(1) Excludes non-recurring charges.
(2) EBITDA figures are after Trump Realty lease payments and Trump management
fee.
____________________________________________________________________________ DLJ
DONALDSON, LUFKIN & JENRETTE
-2-
PROJECT WONDER
- --------------------------------------------------------------------------------
TOM STAND-ALONE PROJECTED FINANCIAL SUMMARY/(1)/
($ in millions)
FISCAL YEAR ENDING DECEMBER 31,
----------------------------------------------------------------------------
1995PF 1996 1997 1998 1999 2000
----------- ----------- ----------- ----------- ----------- -----------
Net Revenues:
Current Property $559.6 $583.4 $612.5 $646.2 $672.1 $702.3
Expansion 0.0 0.0 74.6 99.8 161.8 231.5
----- ----- ----- ----- ----- -----
Total 559.6 583.4 687.1 746.0 833.9 933.8
Growth Rate 8.2% 4.2% 17.8% 8.6% 11.8% 12.0%
EBITDA
Current Property 138.2 161.0 175.4 194.9 205.0 220.0
Expansion 0.0 0.0 33.0 46.3 72.6 101.8
----- ----- ----- ----- ----- -----
Total 138.2 161.0 208.4 241.2 277.6 321.8
Margin 24.7% 27.6% 30.3% 32.3% 33.3% 34.5%
EBIT
Current Property 94.3 112.8 140.1 161.3 169.7 182.9
Expansion 0.0 0.0 25.5 36.0 59.3 83.1
----- ----- ----- ----- ----- -----
Total 94.3 112.8 165.6 197.3 229.0 266.0
Margin 16.9% 19.3% 24.1% 26.5% 27.5% 28.5%
Capital Expenditures
Maintenance 28.5 31.7 25.0 25.0 25.0 35.0
Expansion 0.0 23.7 83.6 75.6 53.1 10.9
---- ---- ----- ----- ---- ----
Total $28.5 $54.8 $108.6 $100.6 $78.1 $45.9
___________________________
(1) Includes add-back of Trump Realty lease expense and Trump management fee.
____________________________________________________________________________ DLJ
DONALDSON, LUFKIN & JENRETTE
-3-
PROJECT WONDER
- --------------------------------------------------------------------------------
TOM EXPANSION PLAN
($ in millions)
ESTIMATED
COST
--------------
Phase I (1996-1997) Conversion of entertainment $53
arena into 60,000 sq. ft. of
casino space
New entertainment area built 8
on steel pier
Phase II (1997-1998) 2,200 car parking garage 26
Phase III (1998-1999) Two 640 room hotel towers 160
---
Total cost $247
===
____________________________________________________________________________ DLJ
DONALDSON, LUFKIN & JENRETTE
-4-
PROJECT WONDER
- --------------------------------------------------------------------------------
PROFILE OF THE COMBINED COMPANY
____________________________________________________________________________ DJL
DONALDSON, LUFKIN & JENRETTE
PROJECT WONDER
- --------------------------------------------------------------------------------
SUMMARY OF CONSOLIDATED SYNERGIES
($ in millions)
FYE DECEMBER 31,
----------------------------------------------
1996 1997 1998
-------------- -------------- --------------
Position / Department Rationalization:
Senior Positions Eliminated....................... $1.3 $1.3
Department Reductions............................. 5.6 5.6
Operational Cost Savings:
Purchasing Discounts (4% on $160 million)......... 6.4 6.4
Mail Volume Discounts................................ 1.0 1.0
Combining Laundry Facilities...................... 1.5 1.5
Combining In-House Litigation Services............ 1.0 1.0
Combining Health Insurance Coverage............... 1.0 1.0
Other Operational Savings......................... 0.5 0.5
Combining Reservations Department.................... -- 1.3
Other Efficiencies................................... -- 1.0
----- ----
TOTAL............................................. $9.0 $18.3 $20.6
=== ==== ====
____________________________________________________________________________ DLJ
DONALDSON, LUFKIN & JENRETTE
-1-
PROJECT WONDER
- --------------------------------------------------------------------------------
PRO FORMA COMBINED FINANCIAL SUMMARY/(1)/
($ in millions)
______________________________________
(1) Assumes $20.00 Wonder stock Price.
____________________________________________________________________________ DLJ
DONALDSON, LUFKIN & JENRETTE
-2-
PROJECT WONDER
- --------------------------------------------------------------------------------
FISCAL YEAR ENDING DECEMBER 31,
-------------------------------------
ESTIMATED PROJECTED
---------------------
PF 1995/(2)/ 1996 1997
--------------- ---------- ----------
TOM
- ---
Revenues.................................. $559.6 $583.4 $612.5
EBITDA.................................... 138.2 161.0 175.4
EBIT...................................... 94.3 112.8 140.1
WONDER/(3)//(4)/
- -------
Revenues.................................. $333.2 $620.4 $724.5
EBITDA.................................... 72.4 140.8 168.2
EBIT...................................... 55.4 113.7 140.1
Net Income................................ (14.4) 28.9 43.7
EPS/(5)/.................................. (0.86) 1.72 2.60
PRO FORMA COMBINED (EXCLUDES
- ----------------------------
SYNERGIES AND TOM EXPANSION)
- ----------------------------
Revenues.................................. $892.8 $1,203.8 $1,337.0
EBITDA.................................... 210.6 301.8 343.6
EBIT...................................... 142.7 209.5 273.2
Net Income................................ (24.9) 35.4 66.2
EPS/(3)/.................................. (0.95) 1.34 2.51
_________________________
(2) 1995 pro forma for add-back of the Trump management fee and Trump Realty
lease payment.
(3) 1995 results pro forma for current capital structure, tax rate and G&A
expenses.
(4) Excludes pre-opening expenses.
(5) Reported 1995 EPS will be approximately ($0.20) per share representing the
period from June 7 through December 31, 1995.
____________________________________________________________________________ DLJ
DONALDSON, LUFKIN & JENRETTE
-3-
PROJECT WONDER
- --------------------------------------------------------------------------------
ACCRETION/DILUTION ANALYSIS/(1)/
FISCAL YEAR ENDING DECEMBER 31,
---------------------------------
ESTIMATED PROJECTED
----------------------
PF 1995 1996 1997
--------- ---------- ----------
EARNINGS PER SHARE:
- -------------------
Wonder Stand-Alone EPS/(2)/ /(3)/....... ($0.86) $1.72 $2.60
Pro Forma Combined EPS:
Unadjusted............................ ($0.95) $1.34 $2.51
Accretion (Dilution).................. (10.1)% (21.9)% (3.4)%
Adjusted For Synergies/(4)/........... ($0.60) $1.54 $2.92
Accretion (Dilution).................. 29.7% (10.4)% 12.2%
Adjusted For Tom Expansion............ NM NM $3.03
Accretion (Dilution).................. NM NM 16.3%
Adj. For Synergies/(4)/ and Tom
Expansion............................. NM NM $3.43
Accretion (Dilution).................. NM NM 31.9%
______________________________________
(1) Assumes $20.00 Wonder stock price. Excludes effect of Trump warrants.
(2) 1995 results pro forma for current capital structure, tax rate and G&A
expenses.
(3) Excludes pre-opening expenses.
(4) Assumes $9.0 million of synergies for FY 1995 and FY 1996 and $18.3
million for FY 1997.
____________________________________________________________________________ DLJ
DONALDSON, LUFKIN & JENRETTE
-4-
PROJECT WONDER
- --------------------------------------------------------------------------------
EPS ACCRETION/DILUTION - SENSITIVITY ANALYSIS/(1)/
PROJECTED
-----------------------------
1996 1997
------------- -------------
10% EPS REDUCTION:
-----------------
Wonder Stand-Alone EPS .............. $1.55 $2.34
Pro Forma Combined EPS:
Unadjusted......................... $1.23 $2.35
Accretion (Dilution)............... (20.3)% 0.1%
Adjusted For Synergies/(2)/........ $1.43 $2.75
Accretion (Dilution)............... (7.5)% 17.5%
Adjusted For Tom Expansion......... NM $2.86
Accretion (Dilution)............... NM 22.1%
Adj. For Synergies/(2)/ and Tom
Expansion......................... NM $3.27
Accretion (Dilution)............... NM 39.4%
________________________________________
(1) Assumes $20.00 Wonder stock price. Excludes effect of Trump warrants.
(2) Assumes $9.0 million of synergies for FY 1996 and $18.3 million for FY
1997.
____________________________________________________________________________ DLJ
DONALDSON, LUFKIN & JENRETTE
-5-
PROJECT WONDER
- --------------------------------------------------------------------------------
25% EPS REDUCTION:
-----------------
Wonder Stand-Alone EPS....................... $1.29 $1.95
Pro Forma Combined EPS:
Unadjusted................................. $1.07 $2.09
Accretion (Dilution)....................... (17.1)% 7.3%
Adjusted For Synergies/(2)/................ $1.27 $2.50
Accretion (Dilution)....................... (1.7)% 28.1%
Adjusted For Tom Expansion................. NM $2.61
Accretion (Dilution)....................... NM 33.6%
Adj. For Synergies/(2)/ and Tom............ NM $3.01
Expansion
Accretion (Dilution)....................... NM 54.4%
____________________________________________________________________________ DLJ
DONALDSON, LUFKIN & JENRETTE
-6-
PROJECT WONDER
- --------------------------------------------------------------------------------
CONSIDERATIONS
. Size of equity offering
. Class A Option: stock vs. cash
. Lock-ups
. Collar
. Absence of definitive agreements
____________________________________________________________________________ DLJ
DONALDSON, LUFKIN & JENRETTE
-7-