NVI Technical College Information

Financial Feasibility

ProForma – Years 6 though 10

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

1,640

1,640

1,640

1,640

1,640

Tuition

$

19,113

$

19,686

$

20,277

$

20,885

$

21,512

Books, Room & Board, fees

$

5,716

$

5,888

$

6,064

$

6,246

$

6,433

Period

Year 6

Year 7

Year 8

Year 9

Year 10

Tuition

$ 31,345,42077.0%

$ 32,285,78377.0%

$ 33,254,35677.0%

$ 34,251,98777.0%

$ 35,279,54777.0%

Non Tuition

9,374,363 $

23.0%

$

9,655,59423.0%

$

9,945,26223.0%

$ 10,243,61923.0%

$ 10,550,92823.0%

Gross Potential Revenue

$ 40,719,783100.0%

$ 41,941,377100.0%

$ 43,199,618100.0%

$ 44,495,607100.0%

$ 45,830,475100.0%

Operating Expenses Direct Expenses CaC

$

2,035,9895.0%

$

2,097,0695.0%

$

2,159,9815.0%

$

2,224,7805.0%

$

2,291,5245.0%

Student Acq Cost

$

3,230,2107.9%

$

3,327,1177.9%

$

3,426,9307.9%

$

3,529,7387.9%

$

3,635,6307.9%

Student GA (non-tuition employer paid expenses)

$

6,883,61216.9%

$

7,090,12016.9%

$

7,302,82416.9%

$

7,521,90916.9%

$

7,747,56616.9%

A

Total Direct Expenses

$ 12,149,81129.8%

$ 12,514,30629.8%

$ 12,889,73529.8%

$ 13,276,42729.8%

$ 13,674,72029.8%

Gross Income

$ 28,569,97270.2%

$ 29,427,07170.2%

$ 30,309,88370.2%

$ 31,219,18070.2%

$ 32,155,75570.2%

Product Direct Payroll

$

3,679,8869.0%

$

3,790,2839.0%

$

3,903,9919.0%

$

4,021,1119.0%

$

4,141,7449.0%

Allocated General Expenses (student count method) Insurance

$

454,524

1.1%

$

468,159

1.1%

$

482,204

1.1%

$

496,670

1.1%

$

511,570

1.1%

Employee Reimbursements

$

56,291

0.1%

$

57,979

0.1%

$

59,719

0.1%

$

61,510

0.1%

$

63,356

0.1%

Non Recurring Exp Budget

$

61,133

0.2%

$

62,968

0.2%

$

64,857

0.2%

$

66,802

0.2%

$

68,806

0.2%

Prof Svcs

$

135,455

0.3%

$

139,519

0.3%

$

143,704

0.3%

$

148,016

0.3%

$

152,456

0.3%

Utilities/HQ

$

402,853

1.0%

$

414,939

1.0%

$

427,387

1.0%

$

440,209

1.0%

$

453,415

1.0%

Software

$

63,368

0.2%

$

65,269

0.2%

$

67,227

0.2%

$

69,244

0.2%

$

71,321

0.2%

Total General Expenses sans Payroll

1,173,624 $

2.9%

$

1,208,8332.9%

$

1,245,0982.9%

$

1,282,4512.9%

$

1,320,9242.9%

EBITDA

$ 23,716,46258.2%

$ 24,427,95658.2%

$ 25,160,79458.2%

$ 25,915,61858.2%

$ 26,693,08758.2%

Annual Debt Service

$

1,842,8454.5%

$

1,842,8454.4%

$

1,842,8454.3%

$

1,842,8454.1%

$

1,842,8454.0%

Net Cash Flow

$ 21,873,61753.7%

$ 22,585,11153.8%

$ 23,317,94954.0%

$ 24,072,77354.1%

$ 24,850,24254.2%

DSCR

12.87x

13.26x

13.65x

14.06x

14.48x

EBITDA Multiplier

3.50x

3.50x

3.50x

3.50x

3.50x

EBITDA Multiplier - EBITDAM Value

$ 83,007,616

$ 85,497,845

$ 88,062,780

$ 90,704,663

$ 93,425,803

Revenue Growth Rate

3.00%

Operating Expense Growth Rate

3.00%

Wages Growth Rate

3.00%

Source: Wert-Berater Feasibility Studies, LLC

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