NVI Technical College Information

Financial Feasibility

Sensitivity Analysis │ 5.0% Revenue Reduction

ProForma – Years 6 through 10

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

1,640

1,640

1,640

1,640

1,640

Tuition

$

18,157

$

18,702

$

19,263

$

19,841

$

20,436

Books, Room & Board, fees

$

5,430

$

5,593

$

5,761

$

5,934

$

6,112

Sensitivity Analysis - Revenue Reduction

5.00%

Period

Year 6

Year 7

Year 8

Year 9

Year 10

Tuition

$ 29,778,14977.0%

$ 30,671,49477.0%

$ 31,591,63977.0%

$ 32,539,38877.0%

$ 33,515,56977.0%

Non Tuition

8,905,645 $

23.0%

$

9,172,81423.0%

$

9,447,99823.0%

$

9,731,43823.0%

$ 10,023,38223.0%

Gross Potential Revenue

$ 38,683,794100.0%

$ 39,844,308100.0%

$ 41,039,637100.0%

$ 42,270,826100.0%

$ 43,538,951100.0%

Operating Expenses Direct Expenses CaC

$

2,035,9895.3%

$

2,097,0695.3%

$

2,159,9815.3%

$

2,224,7805.3%

$

2,291,5245.3%

Student Acq Cost

$

3,230,2108.4%

$

3,327,1178.4%

$

3,426,9308.4%

$

3,529,7388.4%

$

3,635,6308.4%

Student GA (non-tuition employer paid expenses)

$

6,883,61217.8%

$

7,090,12017.8%

$

7,302,82417.8%

$

7,521,90917.8%

$

7,747,56617.8%

A

Total Direct Expenses

$ 12,149,81131.4%

$ 12,514,30631.4%

$ 12,889,73531.4%

$ 13,276,42731.4%

$ 13,674,72031.4%

Gross Income

$ 26,533,98368.6%

$ 27,330,00268.6%

$ 28,149,90268.6%

$ 28,994,39968.6%

$ 29,864,23168.6%

Product Direct Payroll

$

3,679,8869.5%

$

3,790,2839.5%

$

3,903,9919.5%

$

4,021,1119.5%

$

4,141,7449.5%

Allocated General Expenses (student count method) Insurance

$

454,524

1.2%

$

468,159

1.2%

$

482,204

1.2%

$

496,670

1.2%

$

511,570

1.2%

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

0.4%

$

139,519

0.4%

$

143,704

0.4%

$

148,016

0.4%

$

152,456

0.4%

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 $

3.0%

$

1,208,8333.0%

$

1,245,0983.0%

$

1,282,4513.0%

$

1,320,9243.0%

EBITDA

$ 21,680,47356.0%

$ 22,330,88756.0%

$ 23,000,81356.0%

$ 23,690,83856.0%

$ 24,401,56356.0%

Annual Debt Service

$

1,842,8454.8%

$

1,842,8454.6%

$

1,842,8454.5%

$

1,842,8454.4%

$

1,842,8454.2%

Net Cash Flow

$ 19,837,62851.3%

$ 20,488,04251.4%

$ 21,157,96851.6%

$ 21,847,99351.7%

$ 22,558,71851.8%

DSCR

11.76x

12.12x

12.48x

12.86x

13.24x

EBITDA Multiplier

3.50x

3.50x

3.50x

3.50x

3.50x

EBITDA Multiplier - EBITDAM Value

$ 75,881,654

$ 78,158,104

$ 80,502,847

$ 82,917,932

$ 85,405,470

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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