EX-99.C4 4 d797944dex99c4.htm EX-99.C4 EX-99.C4

Exhibit (c)(4)

 

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-Preliminary Working Draft— Project Apex Presentation to the Special Committee October 26, 2023 Privileged & Confidential | Prepared at the Request of Counsel


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-Preliminary Working Draft— Disclaimer This presentation has been prepared by Center view Partners LLC (“Centerview”) for use solely by the Special Committee of the Board of Directors of Atlas (“Atlas”orthe“Company”) inconnectionwithitsevaluationofaproposedtransactionandfornootherpurpose.Theinformationcontainedherein isbaseduponinformationsuppliedbyoronbehalfofAtlasandpubliclyavailableinformation,andportionsoftheinformationcontainedhereinmaybe baseduponstatements,estimatesandforecastsprovidedbyAtlas. Centerviewhasreliedupontheaccuracyandcompletenessoftheforegoing information,andhasnotassumedanyresponsibilityforanyindependentverificationofsuchinformationorforanyindependentevaluationorappraisal ofanyoftheassetsorliabilities(contingentorotherwise)ofAtlasoranyotherentity,orconcerningthesolvencyorfairvalueofAtlasoranyother entity. Withrespecttofinancialforecasts,Centerviewhasassumedthatsuchforecastshavebeenreasonablypreparedonbasesreflectingthebest currentlyavailableestimatesandjudgmentsofthemanagementofAtlasastothefuturefinancialperformanceofAtlas,andatyourdirectionCenterview hasrelieduponsuchforecasts,asprovidedbyAtlas’management,withrespecttoAtlas.Centerviewassumesnoresponsibilityforandexpressesno viewastosuchforecastsortheassumptionsonwhichtheyarebased.Theinformationsetforthhereinisbaseduponeconomic,monetary,marketand otherconditionsasineffecton,andtheinformationmadeavailabletousasof,thedatehereof,unlessindicatedotherwiseandCenterviewassumesno obligationtoupdateorotherwiserevisethesematerials. Thefinancialanalysisinthispresentationiscomplexandisnotnecessarilysusceptibletoapartialanalysisorsummarydescription.Inperformingthis financialanalysis,Centerviewhasconsideredtheresultsofitsanalysisasawholeanddidnotnecessarilyattributeaparticularweighttoanyparticular portionoftheanalysisconsidered. Furthermore,selectinganyportionofCenterview’sanalysis,withoutconsideringtheanalysisasawhole,would createanincompleteviewoftheprocessunderlyingitsfinancialanalysis.Centerviewmayhavedeemedvariousassumptionsmoreorlessprobablethan otherassumptions,sothereferencerangesresultingfromanyparticularportionoftheanalysisdescribedaboveshouldnotbetakentobeCenterview’s viewoftheactualvalueofAtlas. Thesematerialsandtheinformationcontainedhereinareconfidential,werenotpreparedwithaviewtowardpublicdisclosure,andmaynotbe disclosedpubliclyormadeavailabletothirdpartieswithoutthepriorwrittenconsentofCenterview.Thesematerialsandanyotheradvice,writtenor oral,renderedbyCenterviewareintendedsolelyforthebenefitanduseoftheSpecialCommitteeoftheBoardofDirectorsofAtlas(initscapacityas such)initsconsiderationoftheproposedtransaction,andarenotforthebenefitof,anddonotconveyanyrightsorremediesforanyholderof securitiesofAtlasoranyotherperson. Centerviewwillnotberesponsibleforandhasnotprovidedanytax,accounting,actuarial,legalorother specialistadvice.Thesematerialsarenotintendedtoprovidethesolebasisforevaluatingtheproposedtransaction,andthispresentationdoesnot representafairnessopinion,recommendation,valuationoropinionofanykind,andisnecessarilyincompleteandshouldbeviewedsolelyinconjunction withtheoralpresentationprovidedbyCenterview. 1 Privileged & Confidential | Prepared at the Request of Counsel


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-Preliminary Working Draft— Special Committee “Roadmap Dashboard” Focus for Today’s Discussion 10/13 Discussion Topics 10/23 Discussion Topics Reach Negotiate Agreement with Teton with Teton Withdraws or Revises Proposal Becomes Unfriendly Reach Agreement Reach out to with Third Third Parties Party No Agreement with Third Parties Reach Explore Other Agreement for Strategic Strategic Transactions Transaction No Agreement for Strategic Reject all Transaction proposals / transactions and continue to execute on Atlas Management Plan 2 Privileged & Confidential | Prepared at the Request of Counsel


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-Preliminary Working Draft— Executive Summary ï,§ On 10/6, Teton submitted a proposal (the “Initial Proposal”) to acquire for cash all common shares that it does not currently own for $9.00 per shareï,§ On 10/23, at the direction of the Special Committee, Centerview held a call with Teton to discuss the Initial Proposal – On the call, on behalf of the Special Committee, Centerview rejected the Initial Proposal – Later, on 10/23, Centerview provided the Atlas Management Plan to Teton and offered a call with the Atlas Management team to discuss ï,§ On 10/24, Teton submitted an updated non-binding indicative proposal (the “10/24 Situation Proposal”) to the Board of Directors for $9.35 per share Update – +4% increase vs. the Initial Proposal of $9.00 per share ï,§ On 10/25, Atlas Management held a call with to provide an overview of Atlas’ business and industry dynamicsï,§ Topics for today’s meeting are: – Review of Teton’s 10/24 Proposal – Review of discussion and potential next steps for engagement – Discussion of tactics and potential response to Teton  Next ï,§ Align on response to Teton’s 10/24 Proposal Stepsï,§ To discuss next steps for engagement with  3 Privileged & Confidential | Prepared at the Request of Counsel


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-Preliminary Working Draft— Atlas Analysis at Various Prices Teton Proposals Current Initial 10/24 Share Price $5.14 $9.00 $9.35 $10.00 $11.00 $12.00 $13.00 Implied Premium to Current 75% 82% 95% 114% 133% 153% +60% premium vs. Atlas +72% premium vs. Atlas % Premium / (Discount) to: share price on 10/6/2023(2) share price on 10/24/2023(3) 30-Day VWAP $6.11 +47% +53% +64% +80% +96% +113% 90-Day VWAP 9.65 (7%) (3%) +4% +14% +24% +35% 52-Week High (12/05/22)(1) 19.72 (54%) (53%) (49%) (44%) (39%) (34%) 52-Week Low (10/25/23)(1) 5.14 +75% +82% +95% +114% +133% +153% Fully Diluted Shares Outstanding 137.4 138.6 138.8 139.1 139.5 139.9 140.2 Implied Equity Value $706 $1,247 $1,298 $1,391 $1,535 $1,679 $1,823 Plus: Debt & NCI 1,121 Less: Cash (9) Implied Enterprise Value ($mm) $1,818 $2,359 $2,409 $2,503 $2,647 $2,790 $2,934 Non-Teton Shares 39.2 40.4 40.6 40.9 41.4 41.7 42.0 Non-Teton Equity Value $202 $364 $380 $409 $455 $501 $546 Wall Street Implied EV / Adj. EBITDA Consensus ($mm) NTM $273 6.7x 8.6x 8.8x 9.2x 9.7x 10.2x 10.7x 2024E 276 6.6x 8.6x 8.7x 9.1x 9.6x 10.1x 10.6x Implied EV / Adj. EBITDA Atlas Mgmt. Plan ($mm) 2023E $270 6.7x 8.7x 8.9x 9.3x 9.8x 10.3x 10.9x NTM 273 6.7x 8.6x 8.8x 9.2x 9.7x 10.2x 10.8x 2024E 273 6.6x 8.6x 8.8x 9.2x 9.7x 10.2x 10.7x Implied EV / Adj. EBITDA—Normalized Bonus (Atlas Mgmt. Plan) 2023E $253 7.2x 9.3x 9.5x 9.9x 10.5x 11.0x 11.6x NTM 270 6.7x 8.7x 8.9x 9.3x 9.8x 10.3x 10.9x Source: Company filings, Atlas Management Plan shared on October 13, 2023, Wall Street research and FactSet as of October 25, 2023. Note: Dollars in millions, except per share figures. Based on latest publicly available information. Share count not reflective of any undisclosed share repurchases since repurchase program authorized on August 21, 2023.EBITDA reflects median of Wall Street research. (1) 52-week high and low based on highest closing price and lowest closing price. 4 (2) Reflects Atlas closing price as of October 6, 2023 (date of Teton Initial Proposal). (3) Reflects Atlas closing price as of October 24, 2023 (date of Teton 10/24 Proposal). Privileged & Confidential | Prepared at the Request of Counsel


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-Preliminary Working Draft—As presented to the Special Committee on October 23, 2023 Atlas Trading Multiples Over Time EV / NTM Wall Street Consensus Adjusted EBITDA Multiple Since IPO(1) Average EV / Adjusted NTM EBITDA Multiple Since Q2’23 L6M L1Y L2Y Since IPO 20.0x Atlas 8.0x 9.9x 10.6x 11.2x 11.4x 18.0x Peer Median 9.2x 10.1x 10.4x 11.6x 12.2x S&P 500 12.9x 13.0x 12.5x 12.7x 13.0x 16.0x 15.9x 14.0x 14.5x 12.0x 12.6x 10.5x 10.0x 8.6x 8.0x 6.8x 6.0x 4.0x 2.0x 0.0x May-21 Jul-21 Oct-21 Dec-21 Mar-22 May-22 Jul-22 Oct-22 Dec-22 Mar-23 May-23 Jul-23 Oct-23 Atlas Peer Median(2) S&P 500 Source:FactSet as of October 17, 2023. Note: Estimates first available as of May 14, 2021. 5 (1) Analysis based on FactSet estimates only as of October 17, 2023. Privileged & Confidential | Prepared at the Request of Counsel (2) Peers include Steris, Sotera Health, Stericycle, Premier, Pediatrix Medical Group, and Healthcare Services Group.


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-Preliminary Working Draft—As presented to the Special Committee on October 23, 2023 Atlas Illustrative Future Share Price Analysis Reflects Atlas Management Plan shared October 13, 2023 Future Share Price (Nominal) Future Share Price (Present Value) ~6.8x NTM Adj. EBITDA (Current Atlas Management Plan Multiple) 8.5x NTM Adj. EBITDA (~+1.5x vs. Current Atlas Management Plan Multiple) 10.0x NTM Adj. EBITDA (~+3.0x vs. Current Atlas Management Plan Multiple) CAGR $25 $25 $20 At 10.0x Discounted at cost of equity of 12.6% +37% $20 $20 $18 $16 At 8.5x $16 +30% $14 $15 $14 $15 $12 $12 $12 $12 At ~6.8x $12 $11 +21% $10 $9 $9 $10 $10 $12 $10 $10 $5 $8 $5 $7 $7 $7 $5 $5 $7 $6 – – Current YE’24 YE’25 YE’26 YE’27 Current YE’24 YE’25 YE’26 YE’27 Memo: Memo: NTM Adj. EBITDA ($mm) $298 $323 $349 $378 NTM Adj. EBITDA ($mm) $298 $323 $349 $378 Net Debt ($bn) $1.1 $1.0 $1.0 $0.9 Net Debt ($bn) $1.1 $1.0 $1.0 $0.9 Source:Atlas Management Plan shared on October 13, 2023. Note: Dollars in billions. Reflects valuation as of October 17, 2023. Analysis assumes latest share count, RSUs 6 and options held constant in projection period as of Q2 ’23. Debt, cash and non-controlling interest based on year-end balance per Atlas Management Plan. Privileged & Confidential | Prepared at the Request of Counsel


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-Preliminary Working Draft— Atlas Illustrative Future Share Price Sensitivity Reflects Atlas Management Plan shared October 13, 2023 YE 2024 Future Share Price (Nominal) YE 2024 Future Share Price (Present Value) Management Plan + /—% Management Plan + /—% EV / NTM Adj. EBITDA (10.0%) – +10.0% EV / NTM Adj. EBITDA (10.0%) – +10.0% 6.8x $5 $7 $8 6.8x $5 $6 $7 8.5x 9 11 12 8.5x 8 9 11 10.0x 12 14 16 10.0x 10 12 14 NTM Adj. EBITDA ($mm) $268 $298 $328 YE 2025 Future Share Price (Nominal) YE 2025 Future Share Price (Present Value) Management Plan + /—% Management Plan + /—% EV / NTM Adj. EBITDA (10.0%) – +10.0% EV / NTM Adj. EBITDA (10.0%) – +10.0% 6.8x $7 $8 $10 6.8x $5 $7 $8 8.5x 10 12 14 8.5x 8 9 11 10.0x 13 16 18 10.0x 10 12 14 NTM Adj. EBITDA ($mm) $290 $323 $355 Source:Atlas Management Plan shared on October 13, 2023. Note: Dollars in millions, except per share amounts. Reflects valuation as of October 17, 2023. Analysis assumes latest share count, RSUs and options held constant in projection period as of Q2 ’23. Debt, cash and non-controlling interest based on year-end balance per Atlas Management Plan. 7 (1) Projected debt per Atlas Management Plan. Illustrative year end cash balances based on levered free cash flow Privileged & Confidential | Prepared at the Request of Counsel conversion per Atlas Management Plan shared on October 13, 2023.


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-Preliminary Working Draft— Atlas Outlook: Today vs. August 2022 Reflects Atlas Management Plan shared on October 13, 2023 vs. Management Plan as of August 2022 August 2022 Today(1) â^† ‘24E ‘25E ‘24E ‘25E ‘24E ‘25E Revenue $1.4bn $1.5bn $1.2bn $1.3bn ($0.2bn) ($0.3bn) % Growth 11% 10% 3% 5% (832bps) (488bps) Adj. EBITDA $359mm $403mm $273mm $298mm ($86mm) ($106mm) % Growth 8% 12% 1% 9% (722bps) (341bps) Adj. EBITDA 26% 26% 23% 23% (307bps) (279bps) Margin L + 100 S + 300 Interest Rate ~(430bps) (~400bps) (~830bps) Levered $134mm $158mm $37mm $43mm ($97mm) ($115mm) Free Cash Flow Net Leverage 2.3x 1.7x 3.9x 3.4x +1.6x +1.8x NTM Multiple 10.7x (2) 6.8x (2) (3.9x) Prem. / (Disc.) vs. (2.1x) vs. Peer Median (1.8x) vs. Peer Median +0.2x vs. Peer Median Peers 8 (1) Reflects Atlas Management Plan shared on October 13, 2023. (2) Reflects EV / NTM Atlas Management Plan Adjusted EBITDA as of August 23, 2022 and October 17, 2023. Privileged & Confidential | Prepared at the Request of Counsel


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-Preliminary Working Draft— Appendix Privileged & Confidential | Prepared at the Request of Counsel


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-Preliminary Working Draft—As presented to the Highly preliminary; Special Committee on October 23, 2023 subject to further diligence Preliminary Discounted Cash Flow Analysis Reflects Atlas Management Plan shared October 13, 2023 Fiscal Year Ending December 31, Terminal ‘24E-‘28E 2H23E 2024E 2025E 2026E 2027E 2028E Year CAGR Revenue $589 $1,215 $1,280 $1,362 $1,450 $1,542 $1,641 6% % Growth 3%(2) 5% 6% 6% 6% Adj. EBITDA $133 $273 $298 $323 $349 $378 $410 8% (Less): D&A (89) (160) (157) (154) (151) (148) (Less): SBC (10) (21) (22) (23) (24) (25) (Less): Management & Other 2 (5) (5) (5) (6) (6) EBIT (Ex. SBC) $35 $87 $114 $141 $169 $200 (Less): Taxes (1) (10) (25) (33) (41) (49) (58) NOPAT $25 $62 $81 $100 $120 $142 Add: D&A 89 160 157 154 151 148 (Less): CapEx (41) (100) (101) (108) (111) (116) (Less): â^† NWC (2) (4) (20) (21) (24) (25) (Less): Other(3) (4) (0) (1) (1) (1) 2 UFCF $67 $117 $116 $124 $136 $150 (2) % Growth (13%) (1%) 7% 9% 11% Implied Enterprise Value ($bn) Implied Share Price Implied PGR NTM EBITDA Terminal Multiple NTM EBITDA Terminal Multiple NTM EBITDA Terminal Multiple WACC 7.00x 8.50x 10.00x 7.00x 8.50x 10.00x 7.00x 8.50x 10.00x 10.25% $2.2 $2.6 $2.9 $8.00 $10.50 $13.00 4.7% 5.7% 6.3% 10.88% 2.2 2.5 2.9 7.75 10.00 12.50 5.3% 6.3% 6.9% 11.50% 2.1 2.4 2.8 7.25 9.50 12.00 5.9% 6.8% 7.5% Source: Company filings and Atlas Management Plan shared on October 13, 2023. Note: Analysis assumes Atlas valuation date and balance sheet figures as of June 30, 2023. Dollars in millions, except for per share amounts. Share prices rounded to nearest $0.25. See appendix for tax impact analysis / treatment. (1) Tax rate of 29% per Atlas Management. 10 (2) Reflects full-year 2023-2024E growth. (3) Includes $0.5mm of acquisition spend in 2H23E. Privileged & Confidential | Prepared at the Request of Counsel


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-Preliminary Working Draft—As presented to the Special Committee on October 23, 2023 Premia in Selected Precedent Minority “Squeeze Out” Transactions Selected Precedent Minority “Squeeze Out” Transactions(1) % of Implied Initial Bid Premium to Initial to Final Bid Premium to Equity Enterprise Unaff. 30-Day Final Bid Unaff. 30-Day (2) (3) (4) (3) Date Target Acquiror Owned Value Price VWAP % Increase Price VWAP Aug-23 SciPlay Light & Wonder 83% $2.5 29% 17% 15% 47% 34% Dec-22 Weber BDT Capital 72% 3.7 24% (4%) 29% 60% 24% Jun-22 Convey Health TPG Capital 75% 1.1 66% 46% 17% 143% 99% Nov-20 Urovant Sciences Sumitovant Bio 72% 0.7 55% 46% 30% 96% 92% Aug-20 Akcea Thera. Ionis Pharma 76% 1.5 42% 33% 13% 59% 56% Aug-20 Hudson Dufry AG 57% 1.1 24% 12% 23% 50% 64% Feb-20 AVX KYOCERA 72% 2.9 30% 26% 12% 45% 40% Jun-18 Foundation Medicine Roche 57% 5.3 30% 49% 3% 29% 47% Nov-16 Synutra Investor Group 64% 0.8 54% 26% 2% 58% 29% Sep-16 Federal-Mogul Icahn 82% 2.1 41% 61% 43% 101% 130% Mar-16 Crown Media Hallmark 90% 4.4 2% 13% 0% 2%(5) 13% Sep-13 Cornerstone Thera. Chiesi Farmaceutici 58% 0.3 22% 20% 45% 78% 74% Mar-13 Sauer-Danfoss Danfoss 76% 2.6 24% 24% 19% 49% 48% 25th Percentile 64% 24% 17% 12% 47% 34% Median 72% 30% 26% 17% 58% 48% 75th Percentile 76% 42% 46% 29% 78% 74% Source: Company filings and FactSet as of October 17, 2023. Note: Dollars in billions. (1) All cash, minority “squeeze out” transactions with U.S. targets and over $100mm in equity consideration over the last ~10 years with offers from only single acquiror. Excludes transactions in real-estate, energy, financial institutions and oil and gas industries (n=13). (2) Reflects unaffected date of first bid. (3) Reflects 30 trading days. (4) Reflects unaffected date of transaction announcement. 11 (5) On June 24, 2013, Crown Media filed an amendment to its Schedule 13D disclosing it was evaluating a “short-form merger to eliminate the minority stockholders”. Final price reflects 151% premium to share price on June 24, 2013. Privileged & Confidential | Prepared at the Request of Counsel


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-Preliminary Working Draft—As presented to the Special Committee on October 23, 2023 Timing in Selected Precedent Minority “Squeeze Out” Transactions Timing in Selected Precedent Minority “Squeeze Out” Transactions(1) Days Between # of Initial & Initial Bid Signing Initial Bid Date Target Acquiror Bids Final Bid & Signing & Closing & Closing Aug-23 SciPlay Light & Wonder 5 78 82 n.a. n.a. Dec-22 Weber BDT Capital 5 36 48 72 120 Jun-22 Convey Health TPG Capital 3 42 47 109 156 Nov-20 Urovant Sciences Sumitovant Bio 5 4 6 137 143 Aug-20 Akcea Thera. Ionis Pharma 4 9 11 43 54 Aug-20 Hudson Dufry AG 3 40 44 103 147 Feb-20 AVX KYOCERA 4 62 86 38 124 Jun-18 Foundation Medicine Roche 4 3 3 43 46 Nov-16 Synutra Investor Group 2 239 308 180 488 Sep-16 Federal-Mogul Icahn 4 309 191 139 330 Mar-16 Crown Media Hallmark 1 – 54 – 54 Sep-13 Cornerstone Thera. Chiesi Farmaceutici 5 205 209 141 350 Mar-13 Sauer-Danfoss Danfoss 5 85 93 42 135 25th Percentile 3 9 44 43 104 Median 4 42 54 88 139 75th Percentile 5 85 93 138 200 Source: Company filings and FactSet as of October 17, 2023. 12 (1) All cash, minority “squeeze out” transactions with U.S. targets and over $100mm in equity consideration over the last ~10 years with offers from only single acquiror. Excludes transactions in real-estate, energy, financial institutions and oil and gas industries (n=13). Privileged & Confidential | Prepared at the Request of Counsel