Shareholder value is a function of the amount and timing of discretionary cash flows
to the (common) shareholders of a company.
STATEMENT OF OPERATIONS & DISCRETIONARY CASH FLOWS
We continue to expect strong discretionary cash flows
in 2006 and 2007 fueled by 10%-11% production growth.
A discount rate is the rate of return used in a discounted cash flow valuation methodology to convert a series of forecasted discretionary cash flows
to present value.
ServiceMaster continues to generate consistent discretionary cash flows
, primarily due to modest capital expenditures and working capital usage, which Fitch expects to be utilized toward supporting the company's strategic initiatives.
Best partially attributes this resiliency to the flexibility of UnitedHealth's share repurchase program, permitting redirection of discretionary cash flows
common shares outstanding - diluted 43,666 33,122 Discretionary cash flow
(1) $16,316 $11,396 Adjusted EBITDA (2) $20,298 $17,140 (1) Discretionary cash flows
consists of net income excluding non- cash items.
The increased discretionary cash flows
combined with proceeds from non-core property sales are enabling Mission to move forward in the fourth quarter on projects originally slated for next year.
Per share amounts related to discretionary cash flows
are computed using diluted shares outstanding without giving effect to anti-dilution.
With production now averaging between 66 and 67 MMCFE per day and if the present commodity price environment persists for the balance of 2003, we expect to be profitable for the remainder of the year and anticipate discretionary cash flows
in the range of $9 million to $12 million per quarter.
For the first quarter of 2000, discretionary cash flows
improved 369% to $6.
While the company is expected to apply meaningful discretionary cash flows
to debt reduction, Standard & Poor's also recognizes some potential for moderate investments which could benefit Ethyl's competitive profile.