Valuation for Financial Reporting : Fair Value Measurements and ...

Exhibit 3.17 Target Company Business Enterprise Analysis (BEA) — Cash Flow Forecast as of December 31, 2007 ($000s)Actual Forecast2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Sales Growth Percentage 5.0% 10.0% 10.0% 8.0% 7.0% 5.0% 5.0% 5.0% 5.0% 5.0%Net Sales $56,000 $58,800 $64,680 $71,148 $76,840 $82,219 $86,330 $90,646 $95,178 $99,937 $104,934Cost of Sales 23,520 24,696 26,519 28,459 29,968 32,065 33,669 35,352 37,120 38,976 40,924Gross Profit 32,480 34,104 38,161 42,689 46,872 50,153 52,661 55,294 58,059 60,962 64,010Operating Expenses 17,360 17,934 19,404 21,344 22,284 23,843 25,036 26,287 27,602 28,982 30,431Depreciation (MACRS) 3,123 3,112 5,162 3,927 3,060 2,456 2,529 2,607 1,819 1,016 1,049Amortization of Intangibles (Tax) 5,590 5,590 5,590 5,590 5,590 5,590 5,590 5,590 5,590 5,590 5,590Total Operating Expenses 26,073 26,636 30,156 30,861 30,933 31,889 33,154 34,484 35,010 35,588 37,070Taxable Income 6,407 7,468 8,005 11,828 15,939 18,264 19,507 20,810 23,048 25,374 26,940Income Taxes 2,563 2,987 3,202 4,731 6,376 7,306 7,803 8,324 9,219 10,150 10,776Net Income $3,844 $4,481 $4,803 $7,097 $9,564 $10,958 $11,704 $12,486 $13,829 $15,224 $16,164Net Cash FlowNet Income $4,481 $4,803 $7,097 $9,564 $10,958 $11,704 $12,486 $13,829 $15,224 $16,164Capital Expenditures (588) (647) (711) (768) (822) (863) (906) (952) (999) (1,049)Change in Working Capital 7,330 (882) (970) (854) (807) (617) (647) (680) (714) (750)Depreciation 3,112 5,162 3,927 3,060 2,456 2,529 2,607 1,819 1,016 1,049Amortization of Intangibles (Tax) 5,590 5,590 5,590 5,590 5,590 5,590 5,590 5,590 5,590 5,590Net Cash Flow $19,925 $14,026 $14,932 $16,591 $17,375 $18,343 $19,129 $19,606 $20,117 $21,004(1) Present Value Factor, where Discount Rate 16.0% 0.9285 0.8004 0.6900 0.5948 0.5128 0.4421 0.3811 0.3285 0.2832 0.2441Present Value of Net Cash Flow $18,500 $11,226 $10,303 $9,868 $8,910 $8,109 $7,290 $6,441 $5,697 $5,127(continued)107