INCOME STATEMENT PROJECTIONS

Hilb, Rogal & Hamilton

Income Statement

($ in thousands, except per share data)

Actual Estimated Projected
2000 2001 2002 2003 2004 2005 2006 2007
Revenue
Commissions and fees
Investment income
Other income
Total Revenue

Expenses
Compensation and employee benefits Basic blank Income
Other operating expenses
Depreciation & Amortization Statement template
Total Expenses

Operating Income
Interest expense
Non-operating gains / (losses)
Pre-Tax Income
Income taxes
Net Income

Basic Shares Outstanding

Diluted Shares Outstanding

Basic Earnings Per Share

Diluted Earnings Per Share

EBITDA
EBITDA Margin

Providing financial training to Wall Street Hamilton Lin, CFA

WALL ST 5 hamilton@hlcp.net
TRAINING www.wallst-training.com
INCOME STATEMENT PROJECTIONS

Income Statement Support

($ in thousands, except per share data)

Actual Estimated Projected
2000 2001 2002 2003 2004 2005 2006 2007
Depreciation
Amortization of intangibles

Commissions and fees growth

% of Commissions and fees
Investment income
Other income
Basic blank Income Statement Support
% of Total Revenue
template this will be used for calculating
Compensation and employee benefits
Other operating expenses
historical growth rates and margins and
Depreciation the basis for projection drivers
Effective Tax Rate

Capex

DCF Calculations:
Working Capital Calculation
30 Days Operating Expenses
Change in Working Capital

Providing financial training to Wall Street Hamilton Lin, CFA

WALL ST 6 hamilton@hlcp.net
TRAINING www.wallst-training.com
INCOME STATEMENT PROJECTIONS

Hilb, Rogal & Hamilton

Income Statement

($ in thousands, except per share data)

Actual Estimated Projected
2000 2001 2002 2003 2004 2005 2006 2007
Revenue
Commissions and fees $ 256,366 $ 323,078 $ 446,673
Investment income 2,626 2,585 2,439 Step 1:
Other income 1,283 1,896 3,402
Total Revenue $ 260,275 $ 327,559 $ 452,514
Enter in historical, normalized
Expenses
Compensation and employee benefits $ 146,442 $ 182,397 $ 245,405
financials straight from the 10K
Other operating expenses
Depreciation & Amortization
50,165
17,596
62,095
19,984
80,308
13,091
filings
Total Expenses $ 214,203 $ 264,476 $ 338,804

Operating Income $ 46,072 $ 63,083 $ 113,710 TIP: All inputs and hard
Interest expense (8,179) (9,061) (10,665) codes are in blue, all
Non-operating gains / (losses) 1,844 2,708 212 output and formulas are in
Pre-Tax Income $ 39,737 $ 56,730 $ 103,257 black easily differentiate
Income taxes (17,610) (24,381) (42,082)
cells and spot mistakes
Net Income $ 22,127 $ 32,349 $ 61,175

Basic Shares Outstanding 26,224 27,411 29,240

Diluted Shares Outstanding 29,784 31,160 32,876
ADD NUMERATOR TIP: All calculations
Basic Earnings Per Share FOR EFFECT OF $ 0.84 $ 1.18 $ 2.09 MUST match the source
Diluted Earnings Per Share CONVERTIBLE DEBT; $ 0.78 $ 1.07 $ 1.89 filings, if not, dig through
NOTE J, PG F19
EBITDA $ 63,668 $ 83,067 $ 126,801 footnotes to find out why !!
EBITDA Margin 24.5% 25.4% 28.0%

Providing financial training to Wall Street Hamilton Lin, CFA

WALL ST 7 hamilton@hlcp.net
TRAINING www.wallst-training.com