Exhibit (c)(4)
- - --------------------------------------------------------------------------------
CAREY International Inc.
Presentation to the Independent Committee of the Board of Directors
July 11, 2000
Friedman, Billings, Ramsey & Co., Inc. [LOGO]
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Scope of Engagement
Analysis Methodology included:
- - - Comparable company analyses - public travel companies and consolidators
- - - Merger and acquisition transactions - travel and business services
companies and consolidators
- - - Premiums paid analysis
- - - Discounted cash flow analysis
- - - Leveraged buyout analysis
Friedman Billings Ramsey [LOGO]
Executive Summary
7 Friedman Billings Ramsey [LOGO]
Transaction Valuation and Multiples
Price/Share $ 19.00 $ 18.25 $ 18.00
# shares outstanding 9.7 9.7 9.7
----------- ---------- ---------
Market Cap. $ 185.1 $ 177.8 $ 175.3
Purchase warrants/options, net 15.6 14.0 13.5
----------- ---------- ---------
200.7 191.8 188.8
Total Debt and CLO 41.4 41.4 41.4
----------- ---------- ---------
Total transaction value $ 242.1 $ 233.2 $ 230.2
=========== ========== =========
Historical Results
-------------------------------
Operating results FY 1999 LTM 5/31/00
- - --------------------------- -------------------------------
Revenue $ 191.1 $ 224.1
EBITDA 28.0 30.3
EBIT 21.0 22.7
Net Income $ 11.8 $ 12.2
@$19.00 @$18.25 @$18.00
----------------------------- --------------------------- -------------------------
Transaction multiples FY 1999 LTM 5/31/00 FY 1999 LTM 5/31/00 FY 1999 LTM 5/31/00
- - --------------------------- ----------------------------- --------------------------- -------------------------
Revenue 1.3x 1.1x 1.2x 1.0x 1.2x 1.0x
EBITDA 8.6x 8.0x 8.3x 7.7x 8.2x 7.6x
EBIT 11.5x 10.6x 11.1x 10.3x 11.0x 10.1x
P/E 17.0x 16.4x 16.3x 15.7x 16.0x 15.4x
Friedman Billings Ramsey [LOGO]
Comparable Company Analysis
>> Few direct comparables to Carey
>> Many public comparable companies have illiquid stocks below $5.00 /
share leading to questionable valuation multiples
>> Two groups of public comparables:
. Travel Services/Transportation
. Consolidators
Friedman Billings Ramsey [LOGO]
Comparable Company Analysis
Travel Services/Transportation Companies
(in millions)
Price on 52 Weeks Market
--------
Company Name Business 7/8/00 High Low Capitalization
- - --------------------------------------------------------------------------------------------------------------------------
Over $1 billion
Laidlaw Inc. Transportation services $ 0.50 $ 7.94 $ 0.31 $ 165.1
Sabre Holdings Corp. Diversified travel services 25.88 66.80 25.56 3,339.5
Galileo International, Inc. Diversified travel services 20.13 58.69 16.50 1,840.2
- - --------------------------------------------------------------------------------------------------------------------------
Under $500 million
Rural Metro Diversified health + safety services 1.88 10.00 1.13 27.4
Navigant International Inc. Corporate travel mgmt 11.00 12.50 5.94 144.1
Miller Industries Towing services 1.94 5.94 1.44 90.5
Kroll O Gara Co Armored car / Security services 6.44 27.75 4.38 143.3
United Road Services Inc Towing and transportation services 3.50 58.44 0.50 6.2
Mercury Air Group Inc. Aviation services 5.00 9.63 4.63 32.4
Global Vacation Group Inc. Diversified travel services 2.81 6.38 2.44 40.5
Carey International $ 14.06 $ 27.00 $ 6.50 $ 137.0
LTM
------------------------------------------
Enterprise
Company Name Business Value (Ent. V) Revenue EBITDA EBIT Net Income
- - ---------------------------------------------------------------------------------- ------------------------------------------
Over $ 1 billion
Laidlaw Inc. Transportation services $ 3,519.4 $ 2,785.3 $ 473.2 $ 237.9 $ 104.1
Sabre Holdings Corp. Diversified travel services 3,478.9 2,441.4 619.9 363.0 304.8
Galileo International, Inc. Diversified travel services 2,483.9 1,562.8 460.0 291.4 187.6
- - ------------------------------------------------------------------------------------------------------------------------------
Under $500 million
Rural Metro Diversified health + safety services 327.1 574.8 (22.1) (55.9) (52.3)
Navigant International Inc. Corporate travel mgmt 269.6 247.9 39.9 29.6 12.7
Miller Industries Towing services 215.0 570.7 25.0 7.3 (3.4)
Kroll O Gara Co Armored car / Security services 200.7 315.3 18.5 3.0 (3.9)
United Road Services Inc Towing and transportation services 132.8 261.1 (12.5) (29.6) (34.6)
Mercury Air Group Inc. Aviation services 100.4 309.9 22.0 12.2 4.1
Global Vacation Group Inc. Diversified travel services 24.2 130.6 0.4 (6.4) (4.6)
Carey International $ 167.7 $ 224.1 $ 30.3 $ 22.7 $ 12.2
Comparable Company Analysis
Travel Services/Transportation Companies
Margins LTM
---------------------------- --------------------------------------------------------------------
Ent. V / Ent. V / Ent. V / Market Cap / Debt /
Company Name EBITDA EBIT Net Income Revenue EBITDA /(1)/ EBIT /(1)/ Net Income /(1)/ EBITDA
- - --------------------------- ---------------------------- --------------------------------------------------------------------
Over $1 billion
Laidlaw Inc. 17.0% 8.5% 3.7% 1.3x 7.4x 14.8x 1.6x(1) 7.2x
Sabre Holdings Corp. 25.4% 14.9% 12.5% 1.4x 5.6x 9.6x 11.0x 0.6x
Galileo International, Inc. 29.4% 18.6% 12.0% 1.6x 5.4x 8.5x 9.8x 1.5x
- - ----------------------------------------------------------------------------------------------------------------------------------
Under $500 million
Rural Metro NM NM NM 0.6x NM NM NM NM
Navigant International Inc. 16.1% 11.9% 5.1% 1.1x 6.8x 9.1x 11.3x 3.2x
Miller Industries 4.4% 1.3% NM 0.4x 8.6x 29.4x(1) NM 5.4x
Kroll O Gara Co 5.9% 1.0% NM 0.6x 10.9x 66.9x(1) NM 2.0x
United Road Services Inc NM NM NM 0.5x NM NM NM NM
Mercury Air Group Inc. 7.1% 3.9% 1.3% 0.3x 4.6x 8.2x 8.0x 2.1x
Global Vacation Group Inc. 0.3% NM NM 0.2x 68.3x(1) NM NM 82.9x
Multiples - Over $1 billion
- - -----------------------------------------------------------------------------------------
Average 23.9% 14.0% 9.4% 1.4x 6.1x 11.0x 10.4x
Median 25.4% 14.9% 12.0% 1.4x 5.6x 9.6x 10.4x
- - -----------------------------------------------------------------------------------------
Multiples - $500 million - $1 billion
- - -----------------------------------------------------------------------------------------
Average NA NA NA NA NA NA NA
Median NA NA NA NA NA NA NA
- - -----------------------------------------------------------------------------------------
Multiples - Under $500 million
- - -----------------------------------------------------------------------------------------
Average 6.7% 4.5% 3.2% 0.5x 7.7x 8.7x 9.6x
Median 5.9% 2.6% 3.2% 0.5x 7.7x 8.7x 9.6x
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Multiples - All
- - -----------------------------------------------------------------------------------------
Average 13.2% 8.6% 6.9% 0.8x 7.0x 10.0x 10.0x
Median 11.6% 8.5% 5.1% 0.6x 6.8x 9.1x 10.4x
- - -----------------------------------------------------------------------------------------
Carey International /(2)/ 13.5% 10.1% 5.5% 0.6x 4.8x 6.4x 9.4x 1.3x
Company Name Comments
- - --------------------------- ------------------------------------------
Over $1 billion
Laidlaw Inc. Safety Kleen in bankruptcy
Sabre Holdings Corp.
Galileo International, Inc. Negative operating results
- - -----------------------------------------------------------------------------
Under $500 million
Rural Metro Negative operating results
Navigant International Inc.
Miller Industries Declining operating results
Kroll O Gara Co Aborted sale; Negative operating results
United Road Services Inc Negative operating results
Mercury Air Group Inc.
Global Vacation Group Inc. Negative operating results
(1) Shaded values omitted from average and median calculations.
(2) Trading multiples at current stock price.
Friedman Billings Ramsey [LOGO]
Comparable Company Analysis
Travel Services/Transportation Companies - Implied Valuation for Carey
(in millions)
Multiples - Over $1 billion
Enterprise Value / Enterprise Value / Enterprise Value / Market Capitalization /
Revenue EBITDA EBIT Net Income
----------------------- ----------------------- ---------------------- ----------------------
Average Median Average Median Average Median Average Median
----------------------- ----------------------- ---------------------- ----------------------
Multiple 1.4x 1.4x 6.1x 5.6x 11.0x 9.6x 10.4x 10.4x
Carey Value $ 224.1 $ 224.1 $ 30.3 $ 30.3 $ 22.7 $ 22.7 $ 12.2 $ 12.2
----------------------- ----------------------- ---------------------- ----------------------
Implied Ent. Value 313.8 313.8 184.7 169.5 250.2 218.4 - -
Less: Debt 41.4 41.4 41.4 41.4 41.4 41.4 - -
Plus: Cash 10.7 10.7 10.7 10.7 10.7 10.7 - -
----------------------- ----------------------- ---------------------- ----------------------
Implied Equity Value $ 283.1 $ 283.1 154.0 138.9 219.5 187.7 127.3 127.3
# of Shares 9.7 9.7 9.7 9.7 9.7 9.7 9.7 9.7
----------------------- ----------------------- ---------------------- ----------------------
Implied Share Price $ 29.06 $ 29.06 $ 15.81 $ 14.26 $ 22.54 $ 19.27 $ 13.07 $ 13.07
Multiples - $500 million - $1 billion
Enterprise Value / Enterprise Value / Enterprise Value / Market Capitalization /
Revenue EBITDA EBIT Net Income
----------------------- ----------------------- ---------------------- ----------------------
Average Median Average Median Average Median Average Median
----------------------- ----------------------- ---------------------- ----------------------
Multiple 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x 0.0x
Carey Value $ - $ - $ - $ - $ - $ - $ - $ -
----------------------- ----------------------- ---------------------- ----------------------
Implied Ent. Value - - - - - - - -
Less: Debt - - - - - - - -
Plus: Cash - - - - - - - -
----------------------- ----------------------- ---------------------- ----------------------
Implied Equity Value $ - $ - - - - - - -
# of Shares - - - - - - - -
----------------------- ----------------------- ---------------------- ----------------------
Implied Share Price $ - $ - $ - $ - $ - $ - $ - $ -
Friedman Billings Ramsey [LOGO]
Comparable Company Analysis
Travel Services/Transportation Companies - Implied Valuation for Carey
(in millions)
Multiples - Under $500 million
Enterprise Value / Enterprise Value / Enterprise Value / Market Capitalization /
Revenue EBITDA EBIT Net Income
--------------------- ----------------------- ---------------------- ----------------------
Average Median Average Median Average Median Average Median
--------------------- ----------------------- ---------------------- ----------------------
Multiple 0.5x 0.5x 7.7x 7.7x 8.7x 8.7x 9.6x 9.6x
Carey Value $ 224.1 $ 224.1 $ 30.3 $ 30.3 $ 22.7 $ 22.7 $ 12.2 $ 12.2
--------------------- ----------------------- ---------------------- ----------------------
Implied Ent. Value 112.1 112.1 233.1 233.1 197.9 197.9 - -
Less: Debt 41.4 41.4 41.4 41.4 41.4 41.4 - -
Plus: Cash 10.7 10.7 10.7 10.7 10.7 10.7 - -
--------------------- ----------------------- ---------------------- ----------------------
Implied Equity Value $ 81.4 $ 81.4 202.4 202.4 167.2 167.2 117.5 117.5
# of Shares 9.7 9.7 9.7 9.7 9.7 9.7 9.7 9.7
--------------------- ----------------------- ---------------------- ----------------------
Implied Share Price $ 8.36 $ 8.36 $ 20.78 $ 20.78 $ 17.17 $ 17.17 $ 12.06 $ 12.06
Multiples - All
Enterprise Value / Enterprise Value / Enterprise Value / Market Capitalization /
Revenue EBITDA EBIT Net Income
--------------------- ----------------------- ---------------------- ----------------------
Average Median Average Median Average Median Average Median
--------------------- ----------------------- ---------------------- ----------------------
Multiple 0.8x 0.6x 7.0x 6.8x 10.0x 9.1x 10.0x 10.4x
Carey Value $ 224.1 $ 224.1 $ 30.3 $ 30.3 $ 22.7 $ 22.7 $ 12.2 $ 12.2
--------------------- ----------------------- ---------------------- ----------------------
Implied Ent. Value 179.3 134.5 211.9 205.9 227.5 207.0 - -
Less: Debt 41.4 41.4 41.4 41.4 41.4 41.4 - -
Plus: Cash 10.7 10.7 10.7 10.7 10.7 10.7 - -
--------------------- ----------------------- ---------------------- ----------------------
Implied Equity Value $ 148.6 $ 103.8 181.3 175.2 196.8 176.3 122.4 127.3
# of Shares 9.7 9.7 9.7 9.7 9.7 9.7 9.7 9.7
--------------------- ----------------------- ---------------------- ----------------------
Implied Share Price $ 15.26 $ 10.66 $ 18.61 $ 17.99 $ 20.20 $ 18.10 $ 12.56 $ 13.07
Friedman Billings Ramsey [LOGO]
Comparable Company Analysis
Consolidators
(in millions)
Price on 52 Week Market Enterprise
-------
Company Name Business 7/8/00 High Low Capitalization Value (Ent. V)
- - ------------------------------------------------------------------------------------------------------------------------------------
Over $1 billion
Waste Management Inc. Waste mgmt $ 19.19 $ 56.00 $ 13.00 $11,917.1 $ 22,883.0
Republic Services Inc. Waste mgmt 16.88 25.50 8.88 2,962.0 4,155.9
United Rentals Inc. Equipment rental 18.00 31.00 13.00 1,297.2 4,052.0
Encompass Services Corp. Diversified maintenance services 5.56 14.44 4.63 350.2 1,512.8
- - -----------------------------------------------------------------------------------------------------------------------------------
$500 million - $1 billion
NCO Group Inc Accounts receivable mgmt services 24.44 54.88 17.25 625.8 915.2
Pantry Inc Gas and convenience store 9.25 18.69 7.00 167.5 630.9
FYI Inc. Info document mgmt services 34.00 35.75 24.25 510.8 625.9
- - -----------------------------------------------------------------------------------------------------------------------------------
Under $500 million
Integ. Elec. Serv. Inc. Diversifed electrical and data services 5.50 18.88 4.25 207.5 461.1
Comfort Systems USA Inc Diversified heat, AC, repair services 3.75 18.63 3.75 140.7 385.0
Consolidated Graphics Inc Printing services 9.50 50.13 8.50 135.3 376.1
Lason Inc. Integrated info mgmt services 2.53 50.50 2.25 49.3 180.4
Precept Bus. Serv. Inc. Printed business document distributor 1.53 7.88 1.00 15.6 43.3
Carey International $ 14.06 $ 27.00 $ 6.50 $ 137.0 $ 167.7
LTM
----------------------------------------------
Company Name Business Revenue EBITDA EBIT Net Income
- - -----------------------------------------------------------------------------------------------------------------------
Over $1 billion
Waste Management Inc. Waste mgmt $13,273.6 $1,701.9 $ 93.7 $ (686.7)
Republic Services Inc. Waste mgmt 1,932.4 553.8 412.9 207.6
United Rentals Inc. Equipment rental 2,420.3 801.9 437.0 143.9
Encompass Services Corp. Diversified maintenance services 1,875.5 129.0 96.7 25.3
- - -----------------------------------------------------------------------------------------------------------------------
$500 million - $1 billion
NCO Group Inc Accounts receivable mgmt services 546.8 113.8 87.0 38.4
Pantry Inc Gas and convenience store 2,128.0 241.5 189.2 168.9
FYI Inc. Info document mgmt services 391.0 64.2 48.5 25.9
- - -----------------------------------------------------------------------------------------------------------------------
Under $500 million
Integ. Elec. Serv. Inc. Diversifed electrical and data services 1,328.0 86.2 75.0 29.4
Comfort Systems USA Inc Diversified heat, AC, repair services 1,440.7 114.4 90.5 39.8
Consolidated Graphics Inc Printing services 586.4 107.2 77.5 39.9
Lason Inc. Integrated info mgmt services 521.6 27.2 (13.5) (22.1)
Precept Bus. Serv. Inc. Printed business document distributor 167.0 5.3 1.0 (4.9)
Carey International $ 224.1 $ 30.3 $ 22.7 $ 12.2
Friedman Billings Ramsey [LOGO]
Comparable Company Analysis
Consolidators
Margins LTM
-------------------------- -------------------------------------------
Ent. V/ Ent. V/ Ent. V/ Market Cap/ Debt/
Company Name EBITDA EBIT Net Income Revenue EBITDA EBIT (1) Net Income EBITDA Comments
- - ------------------------------------------------------------------------------------------------- ------ -------------------------
Over $1 billion
Waste Management Inc. 12.8% 0.7% NM 1.7x 13.4x 244.3x(1) NM 6.5x
Republic Services Inc. 28.7% 21.4% 10.7% 2.2x 7.5x 10.1x 14.3x 2.2x
United Rentals Inc. 33.1% 18.1% 5.9% 1.7x 5.1x 9.3x 9.0x 3.5x
Encompass Services Corp. 6.9% 5.2% 1.3% 0.8x 11.7x 15.7x 13.8x 9.1x
- - -----------------------------------------------------------------------------------------------------------------------------------
$500 million - $1 billion
NCO Group Inc 20.8% 15.9% 7.0% 1.7x 8.0x 10.5x 16.3x 2.9x
Pantry Inc 11.3% 8.9% 7.9% 0.3x 2.6x 3.3x 1.0x 2.2x Negative operating results
FYI Inc. 16.4% 12.4% 6.6% 1.6x 9.7x 12.9x 19.7x 2.0x Beat IQ street estimates
- - -----------------------------------------------------------------------------------------------------------------------------------
Under $500 million
Integ. Elec. Serv. Inc. 6.5% 5.6% 2.2% 0.3x 5.3x 6.1x 7.1x 3.0x
Comfort Systems USA Inc 7.9% 6.3% 2.8% 0.3x 3.4x 4.3x 3.5x 2.2x
Consolidated Graphics Inc 18.3% 13.2% 6.8% 0.6x 3.5x 4.9x 3.4x 2.3x
Lason Inc. 5.2% NM NM 0.3x 6.6x NM NM 11.9x Negative operating results
Precept Bus. Serv. Inc. 3.2% 0.6% NM 0.3x 8.2x 41.5x(1) NM 9.0x Negative operating results
Multiples - Over $1 billion
- - -----------------------------------------------------------------------------------------------
Average 20.4% 11.3% 6.0% 1.6x 9.4x 11.7x 12.4x
Median 20.7% 11.6% 5.9% 1.7x 9.6x 10.1x 13.8x
- - -----------------------------------------------------------------------------------------------
Multiples - Between $500 million - $1 billion
- - -----------------------------------------------------------------------------------------------
Average 16.2% 12.4% 7.2% 1.2x 6.8x 8.9x 12.3x
Median 16.4% 12.4% 7.0% 1.6x 8.0x 10.5x 16.3x
- - -----------------------------------------------------------------------------------------------
Multiples - Under $500 million
- - -----------------------------------------------------------------------------------------------
Average 8.2% 6.4% 3.9% 0.4x 5.4x 5.1x 4.7x
Median 6.5% 6.0% 2.8% 0.3x 5.3x 4.9x 3.5x
- - -----------------------------------------------------------------------------------------------
Multiples - All
- - -----------------------------------------------------------------------------------------------
Average 14.3% 9.8% 5.7% 1.0x 7.1x 8.6x 9.8x
Median 12.1% 8.9% 6.6% 0.7x 7.1x 9.3x 9.0x
- - -----------------------------------------------------------------------------------------------
Carey International /(2)/ 13.5% 10.1% 5.5% 0.7x 5.5x 6.2x 11.2x 1.3x
(1) Shaded values omitted from average and median calculations.
(2) Trading multiples at current stock price.
Friedman Billing Ramsey [LOGO]
Comparable Company Analysis
Consolidators - Implied Valuation for Carey
(in millions)
Multiples - Over $1 billion
Enterprise Value / Enterprise Value / Enterprise Value / Market Capitalization /
Revenue EBITDA EBIT Net Income
-------------------- ------------------- -------------------- -------------------
Average Median Average Median Average Median Average Median
-------------------- ------------------- -------------------- -------------------
Multiple 1.6x 1.7x 9.4x 9.6x 11.7x 10.1x 12.4x 13.8x
Carey Value $ 224.1 $ 224.1 $ 30.3 $ 30.3 $ 22.7 $ 22.7 $ 12.2 $ 12.2
-------- -------- ------- -------- ------- -------- ------- ---------
Implied Enterprise Value 358.6 381.0 284.6 290.7 266.1 229.7 - -
Less : Debt 41.4 41.4 41.4 41.4 41.4 41.4 - -
Plus: Cash 10.7 10.7 10.7 10.7 10.7 10.7 - -
-------- -------- ------- -------- ------- -------- ------- ---------
Implied Equity Value $ 327.9 $ 350.4 253.9 260.0 235.5 199.1 151.8 168.9
# of Shares 9.7 9.7 9.7 9.7 9.7 9.7 9.7 9.7
-------- -------- ------- -------- ------- -------- ------- ---------
Implied Share Price $ 33.67 $ 35.97 $ 26.07 $ 26.69 $ 24.17 $ 20.43 $ 15.58 $ 17.34
Multiples - $500 million - $1 billion
Enterprise Value / Enterprise Value / Enterprise Value / Market Capitalization /
Revenue EBITDA EBIT Net Income
-------------------- ------------------- -------------------- -------------------
Average Median Average Median Average Median Average Median
-------------------- ------------------- -------------------- -------------------
Multiple 1.2x 1.6x 6.8x 8.0x 8.9x 10.5x 12.3x 16.3x
Carey Value $ 224.1 $ 224.1 $ 30.3 $ 30.3 $ 22.7 $ 22.7 $ 12.2 $ 12.2
-------- -------- ------- -------- ------- -------- ------- ---------
Implied Enterprise Value 269.0 358.6 205.9 242.2 202.4 238.8 - -
Less : Debt 41.4 41.4 41.4 41.4 41.4 41.4 - -
Plus: Cash 10.7 10.7 10.7 10.7 10.7 10.7 - -
-------- -------- ------- -------- ------- -------- ------- ---------
Implied Equity Value $ 238.3 $ 327.9 175.2 211.5 171.8 208.2 150.5 199.5
# of Shares 9.7 9.7 9.7 9.7 9.7 9.7 9.7 9.7
-------- -------- ------- -------- ------- -------- ------- ---------
Implied Share Price $ 24.46 $ 33.67 $ 17.99 $ 21.71 $ 17.63 $ 21.37 $ 15.45 $ 20.48
Friedman Billings Ramsey [LOGO]
Comparable Company Analysis
Consolidators - Implied Valuation for Carey
(in millions)
Multiples - Under $500 million
Enterprise Value / Enterprise Value / Enterprise Value / Market Capitalization /
Revenue EBITDA EBIT Net Income
--------------------- ---------------------- --------------------- ----------------------
Average Median Average Median Average Median Average Median
--------------------- ---------------------- --------------------- ----------------------
Multiple 0.4x 0.3x 5.4x 5.3x 5.1x 4.9x 4.7x 3.5x
Carey Value $ 224.1 $ 224.1 $ 30.3 $ 30.3 $ 22.7 $ 22.7 $ 12.2 $ 12.2
--------------------- ---------------------- --------------------- ----------------------
Implied Enterprise Value 89.7 67.2 163.5 160.5 116.0 111.5 - -
Less: Debt 41.4 41.4 41.4 41.4 41.4 41.4 - -
Plus: Cash 10.7 10.7 10.7 10.7 10.7 10.7 - -
--------------------- ---------------------- --------------------- ----------------------
Implied Equity Value $ 59.0 $ 36.6 132.8 129.8 85.3 80.8 57.5 42.8
# of Shares 9.7 9.7 9.7 9.7 9.7 9.7 9.7 9.7
--------------------- ---------------------- --------------------- ----------------------
Implied Share Price $ 6.05 $ 3.75 $ 13.63 $ 13.32 $ 8.76 $ 8.29 $ 5.90 $ 4.40
Multiples - All
Enterprise Value / Enterprise Value / Enterprise Value / Market Capitalization /
Revenue EBITDA EBIT Net Income
--------------------- ---------------------- ---------------------- ------------------------
Average Median Average Median Average Median Average Median
--------------------- ---------------------- ---------------------- ------------------------
Multiple 1.0x 0.7x 7.1x 7.1x 8.6x 9.3x 9.8x 9.0x
Carey Value $ 224.1 $224.1 $ 30.3 $ 30.3 $ 22.7 $ 22.7 $ 12.2 $ 12.2
--------------------- ----------------------- ---------------------- ------------------------
Implied Enterprise Value 224.1 156.9 215.0 215.0 195.6 211.5 - -
Less: Debt 41.4 41.4 41.4 41.4 41.4 41.4 - -
Plus: Cash 10.7 10.7 10.7 10.7 10.7 10.7 - -
--------------------- ----------------------- ---------------------- ------------------------
Implied Equity Value $ 193.5 $126.2 184.3 184.3 164.9 180.9 $ 119.9 110.1
# of Shares 9.7 9.7 9.7 9.7 9.7 9.7 9.7 9.7
--------------------- ----------------------- ---------------------- ------------------------
Implied Share Price $ 19.86 $ 12.96 $ 18.92 $ 18.92 $ 16.93 $ 18.57 $ 12.31 $ 11.31
Friedman Billings Ramsey [LOGO]
Carey vs. Indices
[GRAPH APPEARS HERE]
GRAPH COMPARES CAREY'S STOCK VS. THE FOLLOWING INDICES: RUSSELL 3000; S & P
SMALL-CAP; WILSHIRE 3000 SMALL-CAP; AND NASDAQ
Friedman Billings Ramsey [LOGO]
Stock Price - Carey vs. Comparable Travel/Transportation Cos.
- - --Carey International Inc.'s Stock Price vs. Galileo International, Inc.'s Stock
Price
[GRAPH APPEARS HERE]
- - --Carey International, Inc.'s Stock Price vs. Mercury Air Group, Inc.'s Stock
Price
[GRAPH APPEARS HERE]
- - --Carey International, Inc.'s Stock Price vs. Galileo Vacation Group, Inc.'s
Stock Price
[GRAPH APPEARS HERE]
- - --Carey International, Inc.'s Stock Price vs. Kroll-O'Gara Company's Stock Price
[GRAPH APPEARS HERE]
Friedman Billings Ramsey [LOGO]
Stock Price - Carey vs. Comparable Travel/Transportation Cos.
- - --Carey International, Inc.'s Stock Price vs. Miller Industries, Inc.'s Stock
Price
[GRAPH APPEARS HERE]
- - --Carey International, Inc.'s Stock Price vs. Navigant International Inc.'s
Stock Price
[GRAPH APPEARS HERE]
- - --Carey International, Inc.'s Stock Price vs. Laidlaw Inc.'s Stock Price
[GRAPH APPEARS HERE]
- - --Carey International, Inc.'s Stock Price vs. Rural/Metro Corporation's Stock
Price
[GRAPH APPEARS HERE]
Friedman Billings Ramsey [LOGO]
Stock Price - Carey vs. Comparable Travel/Transportation Cos.
- - ----------------------------------------------------------------------
----Carey International, Inc.'s Stock Price vs. Sabre Inc.'s Stock
Price
- - ----------------------------------------------------------------------
[GRAPH APPEARS HERE]
- - ----------------------------------------------------------------------
----Carey International, Inc.'s Stock Price vs. United Road Services,
Inc.'s Stock Price
- - ----------------------------------------------------------------------
[GRAPH APPEARS HERE]
Friedman Billings Ramsey [LOGO]
Stock Price - Carey vs. Consolidators
- - ----------------------------------------------------------------------
----Carey International, Inc.'s Stock Price vs. Comfort Systems USA,
Inc.'s Stock Price
- - ----------------------------------------------------------------------
[GRAPH APPEARS HERE]
- - -----------------------------------------------------------------------
----Carey International, Inc.'s Stock Price vs. Encompass Services
Corporation's Stock Price
- - -----------------------------------------------------------------------
[GRAPH APPEARS HERE]
- - ----------------------------------------------------------------------
----Carey International, Inc.'s Stock Price vs. Consolidated Graphics,
Inc.'s Stock Price
- - ----------------------------------------------------------------------
[GRAPH APPEARS HERE]
- - ----------------------------------------------------------------------
----Carey International, Inc.'s Stock Price vs. F.Y.I. Incorporated's
Stock Price
- - ----------------------------------------------------------------------
[GRAPH APPEARS HERE]
Friedman Billings Ramsey [LOGO]
Stock Price - Carey vs. Consolidators
- - ----------------------------------------------------------------------------
----Carey International, Inc.'s Stock Price vs. Integrated Electrical
Services, Inc.'s Stock Price
- - ----------------------------------------------------------------------------
[GRAPH APPEARS HERE]
- - ----------------------------------------------------------------------------
----Carey International, Inc.'s Stock Price vs. NCO Group, Inc.'s Stock
Price
- - ----------------------------------------------------------------------------
[GRAPH APPEARS HERE]
- - ----------------------------------------------------------------------------
----Carey International, Inc.'s Stock Price vs. Lason, Inc.'s Stock Price
- - ----------------------------------------------------------------------------
[GRAPH APPEARS HERE]
- - ----------------------------------------------------------------------------
----Carey International, Inc.'s Stock Price vs. Pantry, Inc.'s Stock Price
- - ----------------------------------------------------------------------------
[GRAPH APPEARS HERE]
Friedman Billings Ramsey [LOGO]
Stock Price - Carey vs. Consolidators
- - --------------------------------------------------------------------------
----Carey international, Inc.'s Stock Price vs. Precept Business
Services, Inc.'s Stock Price
- - --------------------------------------------------------------------------
[GRAPH APPEARS HERE]
- - --------------------------------------------------------------------------
----Carey international, Inc.'s Stock Price vs. United Rentals, Inc.'s
Stock Price
- - --------------------------------------------------------------------------
[GRAPH APPEARS HERE]
- - --------------------------------------------------------------------------
----Carey international, Inc.'s Stock Price vs. Republic Services, Inc.'s
Stock Price
- - --------------------------------------------------------------------------
[GRAPH APPEARS HERE]
- - --------------------------------------------------------------------------
----Carey international, Inc.'s Stock Price vs. Waste Management, Inc.'s
Stock Price
- - --------------------------------------------------------------------------
[GRAPH APPEARS HERE]
Friedman Billings Ramsey [LOGO]
P/E - Carey vs. Travel/Transportation Cos.
- - --Carey International, Inc.'s P/E vs. Galileo Int'l's P/E
[GRAPH APPEARS HERE]
- - --Carey International, Inc.'s P/E vs. Kroll O Gara Co.'s P/E
[GRAPH APPEARS HERE]
- - --Carey International, Inc.'s P/E vs. Global Vacation's P/E
[GRAPH APPEARS HERE]
- - --Carey International, Inc.'s P/E vs. Mercury Air Group's P/E
[GRAPH APPEARS HERE]
Friedman Billings Ramsey [LOGO]
P/E - Carey vs. Travel/Transportation Cos.
- - --Carey International, Inc.'s P/E vs. Miller Industries' P/E
[GRAPH APPEARS HERE]
- - --Carey International, Inc.'s P/E vs. Rural Metro's P/E
[GRAPH APPEARS HERE]
- - --Carey International, Inc.'s P/E vs. Navigant Int'l's P/E
[GRAPH APPEARS HERE]
- - --Carey International, Inc.'s P/E vs. Sabre Holdings Corp.'s P/E
[GRAPH APPEARS HERE]
Friedman Billings Ramsey [LOGO]
P/E - Carey vs. Travel/Transportation Cos.
- - --Carey International, Inc.'s P/E vs. United Road Services Inc.'s P/E
[GRAPH APPEARS HERE]
- - --Carey International, Inc.'s P/E vs. Laidlaw's P/E
[GRAPH APPEARS HERE]
Friedman Billings Ramsey [LOGO]
P/E - Carey vs. Consolidators
- - --Carey International, Inc.'s P/E vs. Comfort Systems USA Inc.'s P/E
[GRAPH APPEARS HERE]
- - --Carey International, Inc.'s P/E vs. Encompass Services Corp.'s P/E
[GRAPH APPEARS HERE]
- - --Carey International, Inc.'s P/E vs. Consolidated Graphics' P/E
[GRAPH APPEARS HERE]
- - --Carey International, Inc.'s P/E vs. FYI Inc.'s P/E
[GRAPH APPEARS HERE]
Friedman Billings Ramsey [LOGO]
P/E - Carey vs. Consolidators
- - --Carey International, Inc.'s P/E vs. Integ. Elec. Serv. Inc.'s P/E
[GRAPH APPEARS HERE]
- - --Carey International, Inc.'s P/E vs. NCO Group Inc.'s P/E
[GRAPH APPEARS HERE]
- - --Carey International, Inc.'s P/E vs. Lason Inc.'s P/E
[GRAPH APPEARS HERE]
- - -- Carey International, Inc.'s P/E vs. Pantry Inc.'s P/E
[GRAPH APPEARS HERE]
Friedman Billings Ramsey [LOGO]
- - --Carey International, Inc.'s P/E vs. Precept Bus Serv Inc.'s P/E
[GRAPH APPEARS HERE]
- - --Carey International, Inc.'s P/E vs. United Rentals Inc.'s P/E
[GRAPH APPEARS HERE]
- - --Carey International, Inc.'s P/E vs. Republic Services Inc.'s P/E
[GRAPH APPEARS HERE]
- - --Carey International, Inc.'s P/E vs. Waste Management, Inc. (WMI)'s P/E
[GRAPH APPEARS HERE]
Friedman Billings Ramsey [LOGO]
Comparable Company Analysis
Description of Comparable Companies
[LOGO OF NCO GROUP]
NCO Group provides accounts-receivable management and related teleservices,
including telemarketing, customer-service call centers, and other outsourced
administrative services from its more than 75 call centers in North America,
Puerto Rico, and the UK.
[LOGO OF THE PANTRY, INC.]
The Pantry operates nearly 1,300 stores in fast-growing cities and resort
areas in several states. The company's long list of store names includes The
Pantry, Handy Way, Lil' Champ, Depot, Food Chief, Dash-N, ETNA, Express Stop,
Quick Stop, Smokers Express, Sprint, Wicker Mart, and Zip Mart.
[LOGO OF PRECEPT]
Precept is a business services outsourcing supplier, offering single source
solutions for automated document management, inventory control, and other e-
commerce services. The company also operates various corporate transportation
services, mainly town car and limousine service.
[LOGO OF REPUBLIC]
Republic provides waste disposal services for commercial, industrial,
municipal, and residential customers through 131 collection companies in 26
states. The company also operates 48 landfills and 70 transfer stations.
[LOGO OF UNITED RENTALS]
United Rentals rents construction and industrial equipment, hand tools,
traffic control equipment, and special-event items such as tents and light
towers, and trench-safety equipment. It also sells new and used equipment,
rental-related supplies, and parts, serving as a distributor for heavy-equipment
makers.
[LOGO OF WASTE MANAGEMENT]
Waste Management serves municipal, business, and residential customers in
the US, Canada, and Mexico. It has a network of landfills and collection
operations, as well as waste transfer, disposal, and recycling services.
Friedman Billings Ramsay [LOGO]
37
Comparable Transaction Analysis
+ Few targets with businesses similar to Carey
+ Most relevant business models
. Coach USA
. Greyhound
. Percept - Transportation Services Division
+ Analysis includes
. Travel companies
. Transportation companies
. Business services companies
. Consolidators
. Transactions after 1/1/98
Friedman Billings Ramsey [LOGO]
Comparable Transaction Analysis
Merger and Acquisition Analysis
(in millions)
Date Date
Announced Effective Status Acquiror Name Target Name Business Description
- - ----------------------------------------------------------------------------------------------------------------------------
Over $1 billion
6/14/99 7/26/99 Completed Stagecoach Holdings PLC Coach USA, Inc. Motorcoach charter services
6/28/99 7/30/99 Completed Atlas Copco N.A. Inc. Rental Service Corp. Rental services
6/16/98 9/30/98 Completed United Rentals US Rentals Rental services
- - ----------------------------------------------------------------------------------------------------------------------------
$500 million - $1 billion
10/16/98 3/16/99 Completed Laidlaw, Inc. Greyhound Lines, Inc. Bus transportation
3/17/00 Pending Pending Investor Group NEFF Corp. Construction equipment rental
services
2/24/00 Pending Pending Investor Group Res-Care Educate populations with
special needs
- - ----------------------------------------------------------------------------------------------------------------------------
Under $500 million
1/14/00 1/21/00 Completed Wesco Financial CORT Business Services Furniture rental services
Corporation
2/21/00 5/5/00 Completed Airtours, plc Travel Services Travel services
International
9/2/98 12/10/98 Completed Rent-Way, Inc. Home Choice Holdings Furniture rental services
2/11/98 6/10/98 Completed Apollo Management MTL Inc. Tank truck carrier services
7/27/99 9/1/99 Completed MSAS Global Logistics Mark VII Inc. Transportation and logistics
services
6/7/99 9/30/99 Completed Yellow Corp. Jevic Transportation Trucking services
1/14/00 Pending Pending Equity Residential Globe Business Business furniture rentals
Properties Resources
11/26/97 2/25/98 Completed Investor Group Universal Hospital Provides medical equipment rental
Services services
1/12/99 1/7/99 Completed Investor Group Intrenet Trucking company
3/24/00 6/1/00 Completed MeriStar Hotels & Bridgestreet Temporary executive housing
Resorts Accomodations
12/24/98 3/4/99 Completed Investor Group COHR, Inc. Equipment rental services
5/19/00 Pending Pending Investor Group Precept Business Provides chauffeured corporate
Services -
Trans. Srvcs. Division Transportation
Carey International @$19.00
Carey International @$18.25
Carey International @$18.00
LTM
-----------------------------------------------------------------------
Market Enterprise Net
Cap Value Revenue EBITDA EBIT Income
- - -------------------------------------------------------------------------------------------------------------------
$ 1,197.5 $ 1,835.5 $ 855.2 $ 191.4 $ 131.2 $ 55.5
714.6 1,487.8 644.6 254.5 114.4 31.5
1,036.3 1,310.2 464.2 155.8 66.6 34.1
- - -------------------------------------------------------------------------------------------------------------------
419.3 739.4 836.0 78.8 47.6 35.8
190.5 670.1 397.1 123.0 54.6 10.1
389.7 662.3 631.6 52.5 35.6 11.5
- - -------------------------------------------------------------------------------------------------------------------
384.0 477.2 346.8 109.2 53.9 27.7
368.0 356.4 179.0 22.7 14.9 8.8
231.0 289.7 251.9 61.4 (16.0) (15.3)
196.3 250.4 286.0 38.4 21.1 10.5
225.8 211.6 736.9 19.5 17.3 10.2
154.5 193.7 237.1 33.4 17.8 9.6
62.9 131.3 158.2 25.7 12.9 4.9
89.2 122.7 60.7 22.7 6.8 1.9
46.6 73.2 258.2 11.1 6.7 2.7
24.0 35.0 96.9 6.0 3.0 1.3
33.0 20.8 102.7 (33.7) (35.5) (32.7)
- 20.0 31.5 6.1 3.0 -
$ 200.7 $ 242.1 $ 224.1 $ 30.3 $ 22.7 $ 12.2
191.8 233.2
188.8 230.2
Friedman Billings Ramsey [LOGO]
Comparable Transaction Analysis
Merger and Acquisition Analysis
Date Date
Announced Effective Status Acquiror Name Target Name
- - -------------------------------------------------------------------------------------------------------
Over $1 billion
6/14/99 7/26/99 Completed Stagecoach Holdings PLC Coach USA, Inc.
6/28/99 7/30/99 Completed Atlas Copco N.A. Inc. Rental Service Corp.
6/16/98 9/30/98 Completed United Rentals US Rentals
- - -------------------------------------------------------------------------------------------------------
$500 million - $1 billion Greyhound Lines, Inc.
10/16/98 3/16/99 Completed Laidlaw, Inc. NEFF Corp.
3/17/00 Pending Pending Investor Group Res-Care
2/24/00 Pending Pending Investor Group
- - -------------------------------------------------------------------------------------------------------
Under $500 million
1/14/00 1/21/00 Completed Wesco Financial Corporation CORT Business Services
2/21/00 5/5/00 Completed Airtours, plc Travel Services International
9/2/98 12/10/98 Completed Rent-Way, Inc. Home Choice Holdings
2/11/98 6/10/98 Completed Apollo Management MTL Inc.
7/27/99 9/1/99 Completed MSAS Global Logistics Mark VII Inc.
6/7/99 9/30/99 Completed Yellow Corp. Jevic Transportation
1/14/00 Pending Pending Equity Residential Properties Globe Business Resources
11/26/97 2/25/98 Completed Investor Group Universal Hospital Services
1/12/99 1/7/99 Completed Investor Group Intrenet
3/24/00 6/1/00 Completed MeriStar Hotels & Resorts Bridgestreet Accomodations
12/24/98 3/4/99 Completed Investor Group COHR, Inc.
5/19/00 Pending Pending Investor Group Precept Business Services -
Trans. Srvcs. Division
LTM Margins
- - -------------------------------------------------------------------
EV/ EV/ EV/ EQ/ Debt/ Net
Revenue EBITDA EBIT NI EBITDA EBITDA EBIT Income
- - ------------------------------------------------------------------
2.1x 9.6x 14.0x 21.6x 3.3x 22.4% 15.3% 6.5%
2.3x 5.8x 13.0x 22.7x 3.0x 39.5% 17.7% 4.9%
2.8x 8.4x 19.7x 30.4x 1.8x 33.6% 14.3% 7.3%
- - ------------------------------------------------------------------
0.9x 9.4x 15.5x 11.7x 4.1x 9.4% 5.7% 4.3%
1.7x 5.4x 12.3x 18.9x 3.9x 31.0% 13.7% 2.5%
1.0x 12.6x 18.6x 33.9x 5.2x 8.3% 5.6% 1.8%
- - ------------------------------------------------------------------
1.4x 4.4x 8.9x 13.9x 0.9x 31.5% 15.5% 8.0%
2.0x 15.7x 23.9x 41.9x NM 12.7% 8.3% 4.9%
1.2x 4.7x NM NM 1.0x 24.4% NM NM
0.9x 6.5x 11.9x 18.7x 1.4x 13.4% 7.4% 3.7%
0.3x 10.9x 12.2x 22.1x NM 2.6% 2.3% 1.4%
0.8x 5.8x 10.9x 16.1x 1.2x 14.1% 7.5% 4.0%
0.8x 5.1x 10.2x 12.8x 2.7x 16.2% 8.2% 3.1%
2.0x 5.4x 18.0x 46.9x 1.5x 37.4% 11.2% 3.1%
0.3x 6.6x 10.9x 17.3x 2.4x 4.3% 2.6% 1.0%
0.4x 5.8x 11.7x 18.5x 1.8x 6.2% 3.1% 1.3%
0.2x NM NM NM NM NM NM NM
0.6x 3.3x 6.8x NA NA NA NA NA
Multiples - Over $1 billion
-------------------------------------------------------------------------------------------------
Average 2.4x 7.9x 15.6x 24.9x 2.7x 31.8% 15.8% 6.2%
Median 2.3x 8.4x 14.0x 22.7x 3.0x 33.6% 15.3% 6.5%
-------------------------------------------------------------------------------------------------
Multiples - $500 million - $1 billion
-------------------------------------------------------------------------------------------------
Average 1.2x 9.1x 15.5x 21.5x 4.4x 16.2% 8.4% 2.9%
Median 1.0x 9.4x 15.5x 18.9x 4.1x 9.4% 5.7% 2.5%
-------------------------------------------------------------------------------------------------
Multiples - Under $500 million
-------------------------------------------------------------------------------------------------
Average 0.9x 6.7x 12.5x 23.1x 1.6x 16.3% 7.4% 3.4%
Median 0.8x 5.8x 11.3x 18.5x 1.4x 13.8% 7.5% 3.1%
-------------------------------------------------------------------------------------------------
Multiples - All
-------------------------------------------------------------------------------------------------
Average 1.2x 7.4x 13.6x 23.2x 2.4x 19.2% 9.2% 3.9%
Median 1.0x 5.8x 12.3x 18.9x 2.1x 15.2% 8.2% 3.7%
-------------------------------------------------------------------------------------------------
Carey International @ $19.00 1.1x 8.0x 10.6x 16.4x 0.9x 13.5% 10.1% 5.5%
Carey International @ $18.25 1.0x 7.7x 10.3x 15.7x
Carey International @ $18.00 1.0x 7.6x 10.1x 15.4x
Friedman Billings Ramsey [lOGO]
Comparable Transaction Analysis
Merger and Acquisition Analysis - Implied Valuation for Carey
(in millions)
Multiples - Over $1 billion
Enterprise Value / Enterprise Value / Enterprise Value / Market Capitalization /
Revenue EBITDA EBIT Net Income
------------------------ ----------------------- ----------------------- ----------------------
Average Median Average Median Average Median Average Median
------------------------ ----------------------- ----------------------- ----------------------
Multiple 2.4x 2.3x 7.9x 8.4x 15.6x 14.0x 24.9x 22.7x
Carey Value $ 224.1 $ 224.1 $ 30.3 $ 30.3 $ 22.7 $ 22.7 $ 12.2 $ 12.2
------------------------ ----------------------- ----------------------- ----------------------
Implied Ent. Value 537.9 515.5 239.2 254.3 354.8 318.5 - -
Less: Debt 41.4 41.4 41.4 41.4 41.4 41.4 - -
Plus: Cash 10.7 10.7 10.7 10.7 10.7 10.7 - -
Plus: Cash From Exercise
of Options/Warrants 24.4 24.4 24.4 24.4 24.4 24.4 - -
------------------------ ----------------------- ----------------------- ----------------------
Implied Equity Value $ 531.7 $ 509.2 232.9 248.0 348.6 312.2 304.7 277.8
# of Diluted Shares 12.0 12.0 12.0 12.0 12.0 12.0 12.0 12.0
----------------------- ----------------------- ----------------------- ----------------------
Implied Share Price $ 44.17 $ 42.31 $ 19.35 $ 20.61 $ 28.96 $ 25.93 $ 25.32 $ 23.08
Multiples - $500 million - $1 billion
Enterprise Value / Enterprise Value / Enterprise Value / Market Capitalization /
Revenue EBITDA EBIT Net Income
----------------------- ----------------------- ----------------------- ----------------------
Average Median Average Median Average Median Average Median
----------------------- ----------------------- ----------------------- ----------------------
Multiple 1.2x 1.0x 9.1x 9.4x 15.5x 15.5x 21.5x 18.9x
Carey Value $ 224.1 $ 224.1 $ 30.3 $ 30.3 $ 22.7 $ 22.7 $ 12.2 $ 12.2
----------------------- ----------------------- ----------------------- ----------------------
Implied Ent. Value 269.0 224.1 275.5 284.6 352.6 352.6 - -
Less: Debt 41.4 41.4 41.4 41.4 41.4 41.4 - -
Plus: Cash 10.7 10.7 10.7 10.7 10.7 10.7 - -
Plus: Cash From Exercise
of Options/Warrants 24.4 24.4 24.4 24.4 24.4 24.4 - -
----------------------- ----------------------- ----------------------- ----------------------
Implied Equity Value $ 262.7 $ 217.9 269.2 278.3 346.3 346.3 263.1 231.3
# of Diluted Shares 12.0 12.0 12.0 12.0 12.0 12.0 12.0 12.0
----------------------- ----------------------- ----------------------- ----------------------
Implied Share Price $ 21.82 $ 18.10 $ 22.37 $ 23.12 $ 28.77 $ 28.77 $ 21.86 $ 19.22
Friedman Billings Ramsey [LOGO]
Comparable Transaction Analysis
Merger and Acquisition Analysis - Implied Valuation for Carey
(in millions)
Multiples - Under $500 million
Enterprise Value / Enterprise Value / Enterprise Value / Market Capitalization /
Revenue EBITDA EBIT Net Income
---------------------- ---------------------- ---------------------- ----------------------
Average Median Average Median Average Median Average Median
---------------------- ---------------------- ---------------------- ----------------------
Multiple 0.9x 0.8x 6.7x 5.8x 12.5x 11.3x 23.1x 18.5x
Carey Value $224.1 $ 224.1 $ 30.3 $ 30.3 $ 22.7 $ 22.7 $ 12.2 $ 12.2
---------------------- ---------------------- ---------------------- ----------------------
Implied Ent. Value 201.7 179.3 202.9 175.6 284.3 257.0 - -
Less: Debt 41.4 41.4 41.4 41.4 41.4 41.4 - -
Plus: Cash 10.7 10.7 10.7 10.7 10.7 10.7 - -
Plus: Cash From Exercise
of Options/Warrants 24.4 24.4 24.4 24.4 24.4 24.4 - -
---------------------- ---------------------- ---------------------- ----------------------
Implied Equity Value $195.4 $ 173.0 196.6 169.3 278.1 250.8 282.7 226.4
# of Diluted Shares 12.0 12.0 12.0 12.0 12.0 12.0 12.0 12.0
---------------------- ---------------------- ---------------------- ----------------------
Implied Share Price $16.24 $ 14.38 $ 16.33 $14.07 $ 23.10 $ 20.83 $ 23.49 $ 18.81
Multiples - All
Enterprise Value / Enterprise Value / Enterprise Value / Market Capitalization /
Revenue EBITDA EBIT Net Income
---------------------- ---------------------- ---------------------- ----------------------
Average Median Average Median Average Median Average Median
---------------------- ---------------------- ---------------------- ----------------------
Multiple 1.2x 1.0x 7.4x 5.8x 13.6x 12.3x 23.2x 18.9x
Carey Value $224.1 $ 224.1 $ 30.3 $ 30.3 $ 22.7 $ 22.7 $ 12.2 $ 12.2
---------------------- ---------------------- ---------------------- ----------------------
Implied Ent. Value 269.0 224.1 224.0 175.6 309.4 279.8 - -
Less: Debt 41.4 41.4 41.4 41.4 41.4 41.4 - -
Plus: Cash 10.7 10.7 10.7 10.7 10.7 10.7 - -
Plus: Cash From Exercise
of Options/Warrants 24.4 24.4 24.4 24.4 24.4 24.4 - -
---------------------- ---------------------- ---------------------- ----------------------
Implied Equity Value $262.7 $ 217.9 217.8 169.3 303.1 273.5 283.9 231.3
# of Diluted Shares 12.0 12.0 12.0 12.0 12.0 12.0 12.0 12.0
---------------------- ---------------------- ---------------------- ----------------------
Implied Share Price $21.82 $ 18.10 $ 18.09 $14.07 $ 25.18 $ 22.72 $ 23.59 $ 19.22
Friedman Billings Ramsey [LOGO]
Comparable Transaction Analysis
Premiums Paid Analysis
(in millions)
Date Date
Announced Effective Status Acquiror Name Target Name
- - ------------------------------------------------------------------------------------------------------------------
Over $1 billion
6/14/99 7/26/99 Completed Stagecoach Holdings PLC Coach USA, Inc.
6/28/99 7/30/99 Completed Atlas Copco N.A. Inc. Rental Service Corp.
6/16/98 9/30/98 Completed United Rentals US Rentals
- - ------------------------------------------------------------------------------------------------------------------
$500 million - $1 billion
10/16/98 3/16/99 Completed Laidlaw, Inc. Greyhound Lines, Inc.
3/17/00 Pending Pending Investor Group NEFF Corp.
2/24/00 Pending Pending Investor Group Res-Care
- - ------------------------------------------------------------------------------------------------------------------
Under $500 million
1/14/00 1/21/00 Completed Wesco Financial Corporation CORT Business Services
2/21/00 5/5/00 Completed Airtours, plc Travel Services International
9/2/98 12/10/98 Completed Rent-Way, Inc. Home Choice Holdings
2/11/98 6/10/98 Completed Apollo Management MTL Inc.
7/27/99 9/1/99 Completed MSAS Global Logistics Mark VII Inc.
6/7/99 9/30/99 Completed Yellow Corp. Jevic Transportation
1/14/00 Pending Pending Equity Residential Properties Globe Business Resources
11/26/97 2/25/98 Completed Investor Group Universal Hospital Services
1/12/99 1/7/99 Completed Investor Group Intrenet
3/24/00 6/1/00 Completed MeriStar Hotels & Resorts Bridgestreet Accomodations
12/24/98 3/4/99 Completed Investor Group COHR, Inc.
5/19/00 Pending Pending Investor Group Precept Business Services -
Trans. Srvcs. Division
Premium to Stock Price
-------------------------------------
Business Description 1 Day 1 Week 4 Weeks
- - -------------------------------------------------------------------------------------------------
Motorcoach charter services 8.7% 40.6% 62.7%
Rental services 68.1% 74.4% 44.5%
Rental services 5.1% 0.0% 1.6%
- - -------------------------------------------------------------------------------------------------
Bus transportation 36.8% 79.3% 42.5%
Construction equipment rental services 9.9% 34.6% 25.2%
Educate populations with special needs 32.6% 24.8% 11.5%
- - -------------------------------------------------------------------------------------------------
Furniture rental services 63.5% 66.5% 62.9%
Travel services 46.5% 62.8% 86.5%
Furniture rental services 72.0% 4.1% 7.7%
Tank truck carrier services 37.9% 38.5% 56.1%
Transportation and logistics services 23.5% 31.4% 37.4%
Trucking services 30.2% 45.5% 51.4%
Business furniture rentals 9.5% 8.3% -0.5%
Provides medical equipment rental services 29.2% 29.2% 25.3%
Trucking company -8.3% 5.8% 41.1%
Temporary executive housing 54.8% 41.2% 50.0%
Equipment rental services 66.4% 89.1% 116.7%
Provides chauffeured corporate
transportation
Over $1 billion
---------------------------------------------------------------------
Average 27.3% 38.3% 36.3%
Median 8.7% 40.6% 44.5%
---------------------------------------------------------------------
$500 million - $1 billion
---------------------------------------------------------------------
Average 26.4% 46.2% 26.4%
Median 32.6% 34.6% 25.2%
---------------------------------------------------------------------
Under $500 million
---------------------------------------------------------------------
Average 38.7% 38.4% 48.6%
Median 37.9% 38.5% 50.0%
---------------------------------------------------------------------
All
---------------------------------------------------------------------
Average 34.5% 39.8% 42.5%
Median 32.6% 38.5% 42.5%
---------------------------------------------------------------------
Carey International @ $19.00 35.1% 36.9% 112.6%
Carey International @ $18.25 29.8% 31.5% 104.2%
Carey International @ $18.00 28.0% 29.7% 101.4%
Friedman Billings Ramsey [LOGO]
Comparable Transaction Analysis
Premiums Paid Analysis - Implied Valuation for Carey
(in millions)
Over $1 billion 1 Day Prior 1 Week Prior 4 Weeks Prior
------------------------------- ------------------------------- ------------------------------
Average Median Average Median Average Median
------------------------------- ------------------------------- ------------------------------
Premium 27.3% 8.7% 38.3% 40.6% 36.3% 44.5%
Carey Stock Price $ 14.06 $ 14.06 $ 13.88 $ 13.88 $ 8.94 $ 8.94
------------------------------- ------------------------------- ------------------------------
Implied Share Price $ 17.90 $ 15.29 $ 19.19 $ 19.51 $ 12.18 $ 12.91
$500 million - $1 billion 1 Day Prior 1 Week Prior 4 Weeks Prior
------------------------------- ------------------------------- ------------------------------
Average Median Average Median Average Median
------------------------------- ------------------------------- ------------------------------
Premium 26.4% 32.6% 46.2% 34.6% 26.4% 25.2%
Carey Stock Price $ 14.06 $ 14.06 $ 13.88 $ 13.88 $ 8.94 $ 8.94
------------------------------- ------------------------------- ------------------------------
Implied Share Price $ 17.78 $ 18.65 $ 20.29 $ 18.68 $ 11.30 $ 11.19
Under $500 million 1 Day Prior 1 Week Prior 4 Weeks Prior
------------------------------- ------------------------------- ------------------------------
Average Median Average Median Average Median
------------------------------- ------------------------------- ------------------------------
Premium 38.7% 37.9% 38.4% 38.5% 48.6% 50.0%
Carey Stock Price $ 14.06 $ 14.06 $ 13.88 $ 13.88 $ 8.94 $ 8.94
------------------------------- ------------------------------- ------------------------------
Implied Share Price $ 19.50 $ 19.39 $ 19.20 $ 19.22 $ 13.28 $ 13.41
All 1 Day Prior 1 Week Prior 4 Weeks Prior
------------------------------- ------------------------------- ------------------------------
Average Median Average Median Average Median
------------------------------- ------------------------------- ------------------------------
Premium 34.5% 32.6% 39.8% 38.5% 42.5% 42.5%
Carey Stock Price $ 14.06 $ 14.06 $ 13.88 $ 13.88 $ 8.94 $ 8.94
------------------------------- ------------------------------- ------------------------------
Implied Share Price $ 18.91 $ 18.65 $ 19.40 $ 19.22 $ 12.74 $ 12.74
Friedman Billings Ramsey [Logo]
Discounted Cash Flow Analysis
Discounted Cash Flow Analysis
Management Projections Assumptions /(1)/
Base Case High Case
----------- -----------
Internal Growth Rate/Year 8% 12%
Acquired Revenue/Year $40 MM $60 MM
Purchase Consideration 100% cash 100% cash
/(1)/ Management Projections dated June 21, 2000
Friedman Billings Ramsey [LOGO]
47
Discounted Cash Flow Analysis
Base Case
(in millions)
Cash Flow Statement
- - ------------------------------------------------------------------------------------------------------------
Years ended November 30, Projected
-------------------------------------------------------
2000 2001 2002 2003 2004
-------------------------------------------------------
Net Income 14.9 16.4 20.8 26.1 32.6
Add: Net After-tax Int. Exp. 2.0 2.8 3.2 3.2 2.9
Add: Depreciation 5.5 6.9 7.4 7.7 8.1
Add: Amortization of Existing Intangibles 3.9 4.6 4.6 4.6 4.6
Add: Amortization of Acquired Goodwill 0.0 0.6 1.6 2.6 3.0
Decrease (Incr) in NWC (2.2) (1.8) (2.5) (2.8) (3.0)
------------- -------- -------- -------- ---------
Operating Cash Flow 24.1 29.6 35.1 41.5 48.2
Acquisition Expenses 45.0 30.0 30.0 30.0 30.0
Capital Expenditures 13.3 4.6 2.0 2.0 2.0
------------- -------- -------- -------- ---------
Unlevered Free Cash Flow (34.2) (5.0) 3.1 9.5 16.2
Discounted Cash Flow Analysis
Base Case - Valuation Matrix
(in millions)
Terminal Multiple of 2004 EBITDA
5.0x 6.0x 7.0x 8.0x
------------------------------------------------------
15.0% ($3.17) ($3.17) ($3.17) ($3.17) Present Value of Free Cash Flows
17.5% ($4.30) ($4.30) ($4.30) ($4.30)
20.0% ($5.31) ($5.31) ($5.31) ($5.31)
22.5% ($6.21) ($6.21) ($6.21) ($6.21)
25.0% ($7.02) ($7.02) ($7.02) ($7.02)
15.0% $189.66 $227.59 $265.52 $303.46 Present Value of Terminal Value
17.5% $169.21 $203.05 $236.89 $270.73
20.0% $151.06 $181.27 $211.49 $241.70
22.5% $134.95 $161.94 $188.93 $215.92
25.0% $120.64 $144.77 $168.90 $193.03
Discount Rate
15.0% $186.49 $224.42 $262.35 $300.28 Firm Value
17.5% $164.91 $198.75 $232.59 $266.43
20.0% $145.75 $175.96 $206.18 $236.39
22.5% $128.74 $155.73 $182.72 $209.71
25.0% $113.62 $137.75 $161.88 $186.00
15.0% $170.01 $207.94 $245.88 $283.81 Equity Value
17.5% $148.43 $182.27 $216.11 $249.95
20.0% $129.28 $159.49 $189.70 $219.91
22.5% $112.26 $139.25 $166.24 $193.24
25.0% $ 97.14 $121.27 $145.40 $169.53
-----------------------
15.0% $ 16.91 $ 20.68 $ 24.45 $ 28.22 Implied Share Price
17.5% $ 14.76 $ 18.12 $ 21.49 $ 24.85
20.0% $ 12.85 $ 15.86 $ 18.86 $ 21.87
22.5% $ 11.16 $ 13.85 $ 16.53 $ 19.21
25.0% $ 9.66 $ 12.06 $ 14.46 $ 16.86
------------------------------------------------------
(1) Transaction multiple is 7.8x EBITDA for LTM 5/31/00.
Friedman Billings Ramsey [LOGO]
Discounted Cash Flow Analysis
High Case
(in millions)
Cash Flow Statement
Years ended November 30, Projected
----------------------------------------------------------------------
2000 2001 2002 2003 2004
----------------------------------------------------------------------
Net Income 14.9 18.4 24.9 33.1 43.4
Add: Net After-tax Int. Exp. 2.0 2.8 3.9 4.5 4.6
Add: Depreciation 5.5 6.9 7.4 7.7 8.1
Add: Amortization of Existing Intangibles 3.9 4.6 4.6 4.6 4.6
Add: Amortization of Acquired Goodwill 0.6 2.1 3.6 4.2
Decrease (Incr) in NWC (2.2) (2.7) (4.0) (4.4) (5.0)
---------- ---------- ---------- ---------- ----------
Operating Cash Flow 24.1 30.7 39.0 49.1 60.0
Acquisition Expenses 45.0 45.0 45.0 45.0 45.0
Capital Expenditures 13.3 4.6 2.0 2.0 2.0
---------- ---------- ---------- ---------- ----------
Unlevered Free Cash Flow (34.2) (18.9) (8.0) 2.1 13.0
Friedman Billings Ramsey [LOGO]
Discounted Cash Flow Analysis
High Case - Valuation Matrix
(in millions)
Terminal Multiple of 2004 EBITDA
5.0x 6.0x 7.0x 8.0x
------------------------------------------------------
15.0% ($29.71) ($29.71) ($29.71) ($29.71) Present Value of Free Cash Flows
17.5% ($29.61) ($29.61) ($29.61) ($29.61)
20.0% ($29.48) ($29.48) ($29.48) ($29.48)
22.5% ($29.30) ($29.30) ($29.30) ($29.30)
25.0% ($29.10) ($29.10) ($29.10) ($29.10)
15.0% $245.98 $295.17 $344.37 $393.56 Present Value of Terminal Value
17.5% $219.45 $263.34 $307.23 $351.12
20.0% $195.92 $235.10 $274.28 $313.47
22.5% $175.03 $210.03 $245.04 $280.04
25.0% $156.47 $187.76 $219.05 $250.34
Discount Rate
15.0% $216.27 $265.46 $314.66 $363.85 Firm Value
17.5% $189.84 $233.73 $277.62 $321.51
20.0% $166.44 $205.62 $244.81 $283.99
22.5% $145.72 $180.73 $215.73 $250.74
25.0% $127.36 $158.66 $189.95 $221.24
15.0% $199.79 $248.99 $298.18 $347.38 Equity Value
17.5% $173.36 $217.25 $261.14 $305.03
20.0% $149.97 $189.15 $228.33 $267.52
22.5% $129.25 $164.25 $199.26 $234.26
25.0% $110.89 $142.18 $173.48 $204.77
-----------------------
15.0% $ 19.87 $ 24.76 $ 29.65 $ 34.54 Implied Share Price
17.5% $ 17.24 $ 21.60 $ 25.97 $ 30.33
20.0% $ 14.91 $ 18.81 $ 22.70 $ 26.60
22.5% $ 12.85 $ 16.33 $ 19.81 $ 23.29
25.0% $ 11.03 $ 14.14 $ 17.25 $ 20.36
------------------------------------------------------
(1) Transaction multiple is 7.8x EBITDA for LTM 5/31/00.
Friedman Billings Ramsey [LOGO]
Leveraged Buyout Analysis
Friedman Billings Ramsey [LOGO]
Leveraged Buyout Analysis
Transaction Sources and Uses of Funds
Equity varies with Share Price
(in millions)
Base Case High Case
$18.00 $18.25 $19.00 $20.00 $18.00 $18.25 $19.00 $20.00
Uses of Funds:
Purchase Outstanding Shares 175.3 177.8 185.1 194.8 175.3 177.8 185.1 194.8
Purchase Options & Warrants 38.3 38.8 40.4 42.6 38.3 38.8 40.4 42.6
Repayment of Debt 39.3 39.3 39.3 39.3 39.3 39.3 39.3 39.3
Capital Leases 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2
Transaction Fees & Expenses 11.0 11.0 11.0 11.0 11.0 11.0 11.0 11.0
---------------------------------------- ----------------------------------------
Total Uses of Funds $266.1 $269.1 $278.0 $289.9 $266.1 $269.1 $278.0 $289.9
======================================== ========================================
Sources of Funds:
Revolver 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6
Capital Leases 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2
Mezzanine Debt 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0
Term Loan A 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0
Term Loan B 60.0 60.0 60.0 60.0 60.0 60.0 60.0 60.0
New PIK Preferred 28.0 28.0 28.0 28.0 28.0 28.0 28.0 28.0
Equity - Ford 15.0 15.0 15.0 15.0 15.0 15.0 15.0 15.0
---------------------------------------- ----------------------------------------
Equity - Chartwell 47.1 50.0 58.9 70.8 47.1 50.0 58.9 70.8
---------------------------------------- ----------------------------------------
Equity - Wolfington 5.2 5.2 5.2 5.2 5.2 5.2 5.2 5.2
Equity - Other Carey Management 3.3 3.3 3.3 3.3 3.3 3.3 3.3 3.3
---------------------------------------- ----------------------------------------
Total Equity 70.5 73.5 82.4 94.3 70.5 73.5 82.4 94.3
Proceeds From Exercise of Options 24.8 24.8 24.8 24.8 24.8 24.8 24.8 24.8
---------------------------------------- ----------------------------------------
Total Sources of Funds $266.1 $269.1 $278.0 $289.9 $266.1 $269.1 $278.0 $289.9
======================================== ========================================
Friedman Billings Ramsey [LOGO]
Leveraged Buyout Analysis
Financial Ratios and IRRs
Equity varies with Share Price
(in millions)
Base Case High Case
$18.00 $18.25 $19.00 $20.00 $18.00 $18.25 $19.00 $20.00
Financial Ratios
Close Debt / EBITDA 4.7 4.7 4.7 4.7 4.7 4.7 4.7 4.7
2001 Debt / EBITDA 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4
2001 EBITDA / Cash Interest 2.2 2.2 2.2 2.2 2.5 2.5 2.5 2.5
2001 EBITDA - CapEx / Cash Interest 2.0 2.0 2.0 2.0 2.2 2.2 2.2 2.2
IRRs
Management fully vests options
2003 Chartwell / Ford 36.2% 34.8% 31.1% 26.7% 45.2% 43.8% 40.0% 35.5%
2003 Management 64.4% 63.8% 62.1% 60.4% 74.0% 73.4% 71.7% 69.8%
2003 Sr. Sub Debt 25.2% 25.2% 25.2% 25.2% 28.5% 28.5% 28.5% 28.6%
2004 Chartwell / Ford 33.5% 32.5% 29.6% 26.3% 41.8% 40.8% 37.9% 34.4%
2004 Management 58.1% 57.7% 56.6% 55.5% 66.9% 66.5% 65.4% 64.2%
2004 Sr. Sub Debt 24.7% 24.7% 24.7% 24.7% 28.2% 28.2% 28.3% 28.3%
No Management Vesting
2003 Chartwell / Ford 40.9% 39.6% 35.8% 31.4% 50.1% 48.6% 44.8% 40.2%
2003 Management 40.9% 39.6% 35.8% 31.4% 50.1% 48.6% 44.8% 40.2%
2003 Sr. Sub Debt 25.2% 25.2% 25.2% 25.2% 28.5% 28.5% 28.5% 28.6%
2004 Chartwell / Ford 37.9% 36.9% 34.0% 30.6% 46.3% 45.3% 42.3% 38.9%
2004 Management 37.9% 36.9% 34.0% 30.6% 46.3% 45.3% 42.3% 38.9%
2004 Sr. Sub Debt 24.7% 24.7% 24.7% 24.7% 28.2% 28.2% 28.3% 28.3%
Friedman Billings Ramsey [LOGO]
Conclusion
Friedman Billings Ramsey [LOGO]
Analysis Summary
Stock Price Stock Price
Average Median Average Median
----------------- -----------------
Comparable Company Analysis Comparable Company Analysis
Travel/ Transportation: Consolidators:
Ent. Value / Revenue Ent. Value / Revenue
Over $1 billion $ 29.06 $ 29.06 Over $1 billion $ 33.67 $ 35.97
$500 million - $1 billion NA NA $500 million - $1 billion 24.46 33.67
Under $500 million 8.36 8.36 Under $500 million 6.05 3.75
All 15.26 10.66 All 19.86 12.96
Ent. Value / EBITDA Ent. Value / EBITDA
Over $1 billion 15.81 14.26 Over $1 billion 26.07 26.69
$500 million - $1 billion NA NA $500 million - $1 billion 17.99 21.71
Under $500 million 20.78 20.78 Under $500 million 13.63 13.32
All 18.61 17.99 All 18.92 18.92
Ent. Value / EBIT Ent. Value / EBIT
Over $1 billion 22.54 19.27 Over $1 billion 24.17 20.43
$500 million - $1 billion NA NA $500 million - $1 billion 17.63 21.37
Under $500 million 17.17 17.17 Under $500 million 8.76 8.29
All 20.20 18.10 All 16.93 18.57
Market Cap. / Net Income Market Cap. / Net Income
Over $1 billion 13.07 13.07 Over $1 billion 15.58 17.34
$500 million - $1 billion NA NA $500 million - $1 billion 15.45 20.48
Under $500 million 12.06 12.06 Under $500 million 5.90 4.40
All 12.56 13.07 All 12.31 11.31
Friedman Billings Ramsey [LOGO]
Analysis Summary
Stock Price Stock Price
Average Median Average Median
---------------- ----------------
Comparable Transaction Analysis Premiums Paid
Ent. Value / Revenue 1 Day Prior
Over $1 billion $ 44.17 $ 42.31 Over $1 billion $ 17.90 $ 15.29
$500 million - $1 billion 21.82 18.10 $500 million - $1 billion 17.78 18.65
Under $500 million 16.24 14.38 Under $500 million 19.50 19.39
All 21.82 18.10 All 18.91 18.65
Ent. Value / EBITDA 1 Week Prior
Over $1 billion 19.35 20.61 Over $1 billion 19.19 19.51
$500 million - $1 billion 22.37 23.12 $500 million - $1 billion 20.29 18.68
Under $500 million 16.33 14.07 Under $500 million 19.20 19.22
All 18.09 14.07 All 19.40 19.22
Ent. Value / EBIT 4 Weeks Prior
Over $1 billion 28.96 25.93 Over $1 billion 12.18 12.91
$500 million - $1 billion 28.77 28.77 $500 million - $1 billion 11.30 11.19
Under $500 million 23.10 20.83 Under $500 million 13.28 13.41
All 25.18 22.72 All 12.74 12.74
Market Cap. / Net Income
Over $1 billion 25.32 23.08
DCF - High Case (8x LTM, 22.5% Discount rate) $ 23.29
$500 million - $1 billion 21.86 19.22
DCF - High Case (7x LTM, 22.5% Discount rate) 19.81
Under $500 million 23.49 18.81
All 23.59 19.22 DCF - Base Case (8x LTM, 22.5% Discount rate) $ 19.21
DCF - Base Case (7x LTM, 22.5% Discount rate) 16.53
Friedman Billings Ramsey [LOGO]