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“incorporates all [estimated cash] flows [for TPC] after Fiscal
2002” discounted back to the end of 2002. With his discounted
terminal value for TPC added to his present value calculation of
TPC’s estimated net cashflow for 1998-2002, respondent’s expert
concluded in his original report that TPC had a May 2, 1998, fair
market value of $212.6 million as follows:
Present Value
Fiscal of Estimated
Year Cashflows
1998 $ 13,141,000
1999 12,637,000
2000 11,884,000
2001 11,217,000
2002 10,579,000
Subtotal $ 59,458,000
Plus Discounted Terminal Value 153,174,000
Valuation of TPC $212,632,000
In his revised report, however, after adjusting his add-back
to TPC’s 1997 net cashflow for the corrected $1,609,793 deferred
taxes (discussed supra) (which as indicated resulted in a greatly
reduced calculation of TPC’s estimated net cashflow number for
1998-2002), respondent’s expert switched his residual value
calculation for TPC after 2002 by estimating what he refers to as
a $152,567,000 “liquidation” value for TPC. Respondent’s
expert’s revised discounted cashflow calculation using the much
reduced cashflow numbers but a liquidation (rather than a
terminal) value for TPC is summarized below:
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