NVI Technical College Information

Financial Feasibility

ProForma – Years 1 though 5

10-Year Pro Forma Annual Usage (No. Students)

820

1,640

1,640

1,640

1,640

Tuition

$

16,982

$

16,982

$

17,491

$

18,016

$

18,556

Books, Room & Board, fees

$

5,079

$

5,079

$

5,231

$

5,388

$

5,550

Period

Year 1

Year 2

Year 3

Year 4

Year 5

Tuition

$ 13,925,00077.0%

$ 27,850,00077.0%

$ 28,685,50077.0%

$ 29,546,06577.0%

$ 30,432,44777.0%

Non Tuition

4,164,500 $

23.0%

$

8,329,00023.0%

$

8,578,87023.0%

$

8,836,23623.0%

$

9,101,32323.0%

Gross Potential Revenue

$ 18,089,500100.0%

$ 36,179,000100.0%

$ 37,264,370100.0%

$ 38,382,301100.0%

$ 39,533,770100.0%

Operating Expenses Direct Expenses CaC

$

904,475

5.0%

$

1,808,9505.0%

$

1,863,2195.0%

$

1,919,1155.0%

$

1,976,6895.0%

Student Acq Cost

$

1,435,0007.9%

$

2,870,0007.9%

$

2,956,1007.9%

$

3,044,7837.9%

$

3,136,1267.9%

Student GA (non-tuition employer paid expenses)

$

3,058,00016.9%

$

6,116,00016.9%

$

6,299,48016.9%

$

6,488,46416.9%

$

6,683,11816.9%

A

Total Direct Expenses

$

5,397,47529.8%

$ 10,794,95029.8%

$ 11,118,79929.8%

$ 11,452,36229.8%

$ 11,795,93329.8%

Gross Income

$ 12,692,02570.2%

$ 25,384,05070.2%

$ 26,145,57270.2%

$ 26,929,93970.2%

$ 27,737,83770.2%

Product Direct Payroll

$

1,634,7669.0%

$

3,269,5319.0%

$

3,367,6179.0%

$

3,468,6469.0%

$

3,572,7059.0%

Allocated General Expenses (student count method) Insurance

$

403,838

2.2%

$

403,838

1.1%

$

415,953

1.1%

$

428,432

1.1%

$

441,285

1.1%

Employee Reimbursements

$

50,014

0.3%

$

50,014

0.1%

$

51,514

0.1%

$

53,059

0.1%

$

54,651

0.1%

Non Recurring Exp Budget

$

54,316

0.3%

$

54,316

0.2%

$

55,946

0.2%

$

57,624

0.2%

$

59,353

0.2%

Prof Svcs

$

120,350

0.7%

$

120,350

0.3%

$

123,961

0.3%

$

127,680

0.3%

$

131,510

0.3%

Utilities/HQ

$

357,930

2.0%

$

357,930

1.0%

$

368,668

1.0%

$

379,728

1.0%

$

391,120

1.0%

Software

$

56,301

0.3%

$

56,301

0.2%

$

57,990

0.2%

$

59,730

0.2%

$

61,522

0.2%

Total General Expenses sans Payroll

1,042,750 $

5.8%

$

1,042,7502.9%

$

1,074,0322.9%

$

1,106,2532.9%

$

1,139,4412.9%

EBITDA

$ 10,014,51055.4%

$ 21,071,76958.2%

$ 21,703,92258.2%

$ 22,355,04058.2%

$ 23,025,69158.2%

Annual Debt Service

$

1,690,0009.3%

$

1,690,0004.7%

$

1,842,8454.9%

$

1,842,8454.8%

$

1,842,8454.7%

Net Cash Flow

$

8,324,51046.0%

$ 19,381,76953.6%

$ 19,861,07753.3%

$ 20,512,19553.4%

$ 21,182,84653.6%

DSCR

5.93x

12.47x

11.78x

12.13x

12.49x

EBITDA Multiplier

3.50x

3.50x

3.50x

3.50x

3.50x

EBITDA Multiplier - EBITDAM Value

$ 35,050,784

$ 73,751,192

$ 75,963,728

$ 78,242,640

$ 80,589,919

Revenue Growth Rate

3.00%

Operating Expense Growth Rate

3.00%

Wages Growth Rate

3.00%

Source: Wert-Berater Feasibility Studies, LLC

119