NVI Technical College Information

Financial Feasibility

Breakdown of the Financial Statements

Financial Ratios table on the following page.

Historically 2008

In this section, the financial analysis includes a stabilized 10-year pro

through 2018 the Total Expenses (Less Lease) average was 35.6

forma statement.

This section also includes a Sensitivity and

percent whereas the Maximum was 43.2 percent, and the Minimum

Breakeven Analysis. The Discounted Cash Flow (DCF) is prepared

was about 24.9 percent. This data was extrapolated from actual

based on EBITDA estimated in the base pro forma and the Net

financial statements provided by the management of the Company.

Present Value (NPV) indications are compared with the project cost

Loan Request Summary

as a financial test of feasibility based on industry indicated Discount

The Term Sheet provided by BayFirst National Bank indicated

A

Rates and EBITDA multipliers provided by DealStats .

$16,900,000 guaranteed by the United States Department of

The Breakeven Analysis is based on a achieving a minimum Debt

Agriculture (USDA), Business and Industry Guaranteed Loan

Service Coverage (DSCR) of 1.2x:1 by reducing tuition revenue and

Program. 80% loan guarantee required. Wall Street Journal Prime

number of students.

The financial analysis presented includes

Rate (currently 8.5%) + 1.50%. The rate will be subject to change

Internal Rate of Return (IRR), Modified Internal Rate of Return

quarterly from the date of the loan with any increase or decrease in

(MIRR) and Debt Service Coverage Ratios (DSCR) annually for each

the base of Wall Street Journal Prime Rate a published daily in the

10-year period.

money rates section of the Wall Street Journal. The payment

amounts to be adjusted with any change in the interest rate. 27

Operating Expenses Assumptions

years. Payment of interest only for the first 24 months of the loan

Historical Revenue, Expenses, Usage and Financial Ratios

then fully amortized for the remaining term of the loan (25 years).

As presented in the Historical Revenue, Expenses, Usage and

Source: Wert-Berater Feasibility Studies, LLC

115