NVI Technical College Information

Financial Feasibility

Sensitivity Analysis │ 5.0% Revenue Reduction

ProForma – Years 1 through 5

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

820

1,640

1,640

1,640

1,640

Tuition

$

16,133

$

16,133

$

16,617

$

17,115

$

17,629

Books, Room & Board, fees

$

4,825

$

4,825

$

4,969

$

5,119

$

5,272

Sensitivity Analysis - Revenue Reduction

5.00%

Period

Year 1

Year 2

Year 3

Year 4

Year 5

Tuition

$ 13,228,75077.0%

$ 26,457,50077.0%

$ 27,251,22577.0%

$ 28,068,76277.0%

$ 28,910,82577.0%

Non Tuition

3,956,275 $

23.0%

$

7,912,55023.0%

$

8,149,92723.0%

$

8,394,42423.0%

$

8,646,25723.0%

Gross Potential Revenue

$ 17,185,025100.0%

$ 34,370,050100.0%

$ 35,401,152100.0%

$ 36,463,186100.0%

$ 37,557,082100.0%

Operating Expenses Direct Expenses CaC

$

904,475

5.3%

$

1,808,9505.3%

$

1,863,2195.3%

$

1,919,1155.3%

$

1,976,6895.3%

Student Acq Cost

$

1,435,0008.4%

$

2,870,0008.4%

$

2,956,1008.4%

$

3,044,7838.4%

$

3,136,1268.4%

Student GA (non-tuition employer paid expenses)

$

3,058,00017.8%

$

6,116,00017.8%

$

6,299,48017.8%

$

6,488,46417.8%

$

6,683,11817.8%

A

Total Direct Expenses

$

5,397,47531.4%

$ 10,794,95031.4%

$ 11,118,79931.4%

$ 11,452,36231.4%

$ 11,795,93331.4%

Gross Income

$ 11,787,55068.6%

$ 23,575,10068.6%

$ 24,282,35368.6%

$ 25,010,82468.6%

$ 25,761,14868.6%

Product Direct Payroll

$

1,634,7669.5%

$

3,269,5319.5%

$

3,367,6179.5%

$

3,468,6469.5%

$

3,572,7059.5%

Allocated General Expenses (student count method) Insurance

$

403,838

2.3%

$

403,838

1.2%

$

415,953

1.2%

$

428,432

1.2%

$

441,285

1.2%

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

0.4%

$

123,961

0.4%

$

127,680

0.4%

$

131,510

0.4%

Utilities/HQ

$

357,930

2.1%

$

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 $

6.1%

$

1,042,7503.0%

$

1,074,0323.0%

$

1,106,2533.0%

$

1,139,4413.0%

EBITDA

$

9,110,03553.0%

$ 19,262,81956.0%

$ 19,840,70456.0%

$ 20,435,92556.0%

$ 21,049,00356.0%

Annual Debt Service

$

1,690,0009.8%

$

1,690,0004.9%

$

1,842,8455.2%

$

1,842,8455.1%

$

1,842,8454.9%

Net Cash Flow

$

7,420,03543.2%

$ 17,572,81951.1%

$ 17,997,85950.8%

$ 18,593,08051.0%

$ 19,206,15751.1%

DSCR

5.39x

11.40x

10.77x

11.09x

11.42x

EBITDA Multiplier

3.50x

3.50x

3.50x

3.50x

3.50x

EBITDA Multiplier - EBITDAM Value

$ 31,885,122

$ 67,419,867

$ 69,442,463

$ 71,525,737

$ 73,671,509

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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