Fall 2014 issue of Horizons

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ALL ENGINEERING AND ARCHETICURAL SERVICES

EBITDA Margin (LFY)

MVIC/ Sales (LFY)

MVIC/ EBITDA (LFY)

The lower multiples are due to the nature of the work, which is project based, and the volatility caused by fluctuations in the number of projects and the project size. 1 Cl se Date MVIC P ice Net Sales (LFY) Count 23 23 23 Minimum 1/20/09 220,000 $ 23,625 $

This method is based on the following formula:

EBITDA (LFY)

ALL ENGINEERING AND ARCHETICURAL SERVICES

(12,120,000) $

-2555.8% 0.1x

2.1x

EBITDA Margin (LFY)

MVIC/ Sales (LFY)

MVIC/ EBITDA (LFY)

1/21/14 418,000,000

598,776,000 46,163,763 Net Sales (LFY) 6,559,182

10,471,206 EBITDA (LFY) 709,419 299,768

23.2% 168.6x 100.0x

Maximum Average

- -

37,593,620 3,984,192

-122.0% 8.0x

15.6x

Close Date MVIC Price

0.7x 23

8.5x 16 2.1x

5.4% 20

Median Count

1/20/09

220,000

All General Contractors ALL GENERAL CONTRACTORS (12,120,000) $ 598,776,000 10,471,206 23,625 $

-2555.8% 0.1x

Minimum Maximum Average

1/21/14 418,000,000

23.2% 168.6x 100.0x

- -

37,593,620 3,984,192

Net Sales (LFY) 46,163,763 6,559,182

709,419 299,768

-122.0% 8.0x

15.6x

MVIC/ EBITDA (LFY)

MVIC/ Sales (LFY)

EBITDA Margin (LFY)

EBITDA (LFY)

0.7x

8.5x

5.4%

Median

Close Date MVIC Price

Count

The cash flow stream in this formula is stated as a single dollar amount that is assumed to be consistent each year. Recent historical results are often used to indicate cash flow levels that can reasonably be expected in the future. Historical financial statements are analyzed and “normalized” by making adjustments for nonrecurring, extraordinary, and non- operating items. In addition, certain discretionary expenses are typically adjusted to better reflect the earning potential of the business. Once historical financials have been “normalized,” weightings should be applied to the historical results (as well as the projection for the upcoming year to incorporate existing backlog) and the weighted average of the results is used as the cash flow stream to be capitalized. A capitalization rate is selected which represents an investor’s required rate of return on an investment with a similar degree of risk. This capitalization rate is developed by estimating the company’s weighted average cost of capital (“WACC”) and then subtracting the expected rate of future growth. Market Approach EV/Revenue and EV/EBITDA multiples, which are discussed on page 17, are also important metrics in the construction industry. As shown in the following tables, the multiples typically observed in the construction industry are much lower than those observed for other industries.

ALL GENERAL CONTRACTORS

9/25/09

55,000

139,488

(128,318) 2,018,184 EBITDA (LFY) 163,046 54,780 (128,318) 2,018,184 25

-20.7% 0.1x

0.6x

Minimum Maximum Average Minimum Maximum Average Median Count Minimum Maximum Average Minimum Maximum Average Median Count Median Count

EBITDA Margin (LFY)

MVIC/ Sales (LFY)

MVIC/ EBITDA (LFY)

3/24/14 1,594,580,000 58,529,541 Close Date MVIC Price

427,777,000 22,886,430 Net Sales (LFY)

47.6% 3.7x 113.9x

- -

11.9% 0.6x

11.8x

0.4x 29

3.9x 23 0.6x

400,000 55,000 29

812,472 139,488 29

11.1% 25

9/25/09

-20.7% 0.1x

ALL SUBCONTRACTORS

3/24/14 1,594,580,000

Net Sales (LFY) 22,886,430 812,472 427,777,000

47.6% 3.7x 113.9x

- -

58,529,541

163,046 54,780

11.9% 0.6x

11.8x

EBITDA Margin (LFY)

MVIC/ Sales (LFY)

MVIC/ EBITDA (LFY)

EBITDA (LFY)

0.4x

3.9x

400,000

11.1%

Close Date MVIC Price

All Subcontractors ALL SUBCONTRACTORS 152 144

152

143

152

126 0.6x

2/1/09

30,000

112,182

(482,000)

-19.1% 0.1x

MVIC/ EBITDA (LFY)

MVIC/ Sales (LFY)

EBITDA Margin (LFY)

5/22/14 502,478,000 5,983,332 Close Date MVIC Price

218,699,527 Net Sales (LFY) 5,875,412 1,033,350

45,100,000 EBITDA (LFY) 863,384 131,429 (482,000) 144 45,100,000

57.5% 6.4x 141.0x

- -

13.5% 0.5x

5.8x 3.3x 126 0.6x

0.4x 152

400,000 152

11.9% 143

152

2/1/09

30,000

112,182

-19.1% 0.1x

5/22/14 502,478,000

218,699,527

57.5% 6.4x 141.0x

- -

5,983,332

5,875,412 1,033,350

863,384 131,429

13.5% 0.5x

5.8x 3.3x

0.4x

400,000

11.9%

Median

ALL ENGINEERING AND ARCHETICURAL SERVICES All Architectural & Engineering Services

MVIC/ EBITDA (LFY)

MVIC/ Sales (LFY)

EBITDA Margin (LFY)

Net Sales (LFY)

EBITDA (LFY)

Close Date MVIC Price

Count

1/20/09

220,000

23,625

(12,120,000) $

-2555.8% 0.1x

2.1x

Minimum Maximum Average

1/21/14 418,000,000

598,776,000 46,163,763

10,471,206

23.2% 168.6x 100.0x

- -

37,593,620 3,984,192

709,419 299,768

-122.0% 8.0x

15.6x

0.7x

8.5x

6,559,182

5.4%

Median

ALL GENERAL CONTRACTORS

EBITDA Margin (LFY)

MVIC/ Sales (LFY)

MVIC/ EBITDA (LFY)

Close Date MVIC Price 1 In the above schedules, MVIC (“Market Value of Invested Capital”) is the consideration paid to the seller and includes any cash, notes, and/ or securities that were used as a form of payment plus any interest-bearing liabilities assumed by the buyer, and LFY equals last fiscal year. Net Sales (LFY) EBITDA (LFY) Count 29 29 29 Minimum Maximum Average 9/25/09 55,000 $ 139,488 $ (128,318) 2,018,184 $ 3/24/14 1,594,580,000 427,777,000 22,886,430 58,529,541 25

-20.7% 0.1x

0.6x

47.6% 3.7x 113.9x

- -

163,046 54,780

11.9% 0.6x

11.8x

0.4x

3.9x

400,000

812,472

11.1%

Median

Source: Pratt’s Stats

ALL SUBCONTRACTORS

EBITDA Margin (LFY)

MVIC/ Sales (LFY)

MVIC/ EBITDA (LFY)

Net Sales (LFY)

EBITDA (LFY)

Close Date MVIC Price

As shown in the preceding tables, general contractors and subcontractors tend to transact at significantly lower multiples than architectural and engineering (“A&E”) firms do. Count 152 152 152 Minimum 2/1/09 30,000 $ 112,182 $ (482,000) $ Maximum 5/22/14 502,478,000 218,699,527 45,100,000 Average - 5,983,332 5,875,412 863,384 144

143

152

126 0.6x

-19.1% 0.1x

57.5% 6.4x 141.0x

13.5% 0.5x

5.8x 3.3x

0.4x

400,000

1,033,350

131,429

11.9%

Median

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