BUSINESS AVIATION
AN ENTERPRISE VALUE PERSPECTIVE
S&P SMALLCAP 600 COMPANIES FROM 2005 - 2010

SMALL AND MEDIUM ENTERPRISES

pARt II
FALL 2010
NEXA ADVISORS, LLC www.nexACApItAL.COm
+1 202 558 7417 www.nbAA.ORg +1 202 783 9000

BUSINESS AVIATION
AN ENTERPRISE VALUE PERSPECTIVE
SMALL AND MEDIUM ENTERPRISES • PART II • FALL 2010
CONTENTS
INTRODUCTION 2 EXECUTIVE SUMMARY 3 STUDY METHODOLOGY AND ASSUMPTIONS 5 ENHANCING ENTERPRISE VALUE 7 THE “UBV” FRAMEWORK FOR SMEs 9 FINANCIAL RESULTS- USERS VERSUS NONUSERS 11 NONFINANCIAL RESULTS 16 CASE STUDY: SANDERSON FARMS (SAFM) 17 COMPANIES ANALYZED WITHIN THE STANDARD & POOR’S 600 18 DEFINITIONS AND TERMS USED 22

INTRODUCTION
“Having an aircraft allows me to do more in a day… see more customers, visit more distributors, and make more appointments. It is a way to leverage my time. I call it my time machine.”
Steven G. Whitney President Whitney Products This new and comprehensive study examined whether the use of business aircraft provided benefits to small and medium businesses, measured in terms of shareholder and enterprise value. NEXA Advisors applied the same methodologies in its first volume “Business Aviation: An Enterprise Value Perspective”, published in 2009. That report concluded that for the Standard & Poor’s (S&P) 500 - the largest public companies in America: • Those companies that used business aircraft consistently outperformed those that did not; • Users of business aircraft outnumbered nonusers three to one - with users continually finding ways to deploy this unique asset to drive higher revenues, greater profitability, and improved efficiency; • Business aviation provided a unique competitive benefit to America’s businesses, both nationally and internationally, expressed through greater shareholder and enterprise value; and • Business aircraft users were overwhelmingly represented among the most innovative, most admired, best brands, and best places to work. They dominated the list