NVI Technical College Information

Financial Feasibility

Sensitivity Analysis │ 10.0% 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

$

15,284

$

15,284

$

15,742

$

16,214

$

16,701

Books, Room & Board, fees

$

4,571

$

4,571

$

4,708

$

4,849

$

4,995

Sensitivity Analysis - Revenue Reduction

10.00%

Period

Year 1

Year 2

Year 3

Year 4

Year 5

Tuition

$ 12,532,50077.0%

$ 25,065,00077.0%

$ 25,816,95077.0%

$ 26,591,45977.0%

$ 27,389,20277.0%

Non Tuition

$

3,748,05023.0%

$

7,496,10023.0%

$

7,720,98323.0%

$

7,952,61223.0%

$

8,191,19123.0%

Gross Potential Revenue

$ 16,280,550100.0%

$ 32,561,100100.0%

$ 33,537,933100.0%

$ 34,544,071100.0%

$ 35,580,393100.0%

Operating Expenses Direct Expenses CaC

$

904,475

5.6%

$

1,808,9505.6%

$

1,863,2195.6%

$

1,919,1155.6%

$

1,976,6895.6%

Student Acq Cost

$

1,435,0008.8%

$

2,870,0008.8%

$

2,956,1008.8%

$

3,044,7838.8%

$

3,136,1268.8%

Student GA (non-tuition employer paid expenses)

$

3,058,00018.8%

$

6,116,00018.8%

$

6,299,48018.8%

$

6,488,46418.8%

$

6,683,11818.8%

A

Total Direct Expenses

5,397,475 $

33.2%

$ 10,794,95033.2%

$ 11,118,79933.2%

$ 11,452,36233.2%

$ 11,795,93333.2%

Gross Income

$ 10,883,07566.8%

$ 21,766,15066.8%

$ 22,419,13566.8%

$ 23,091,70966.8%

$ 23,784,46066.8%

Product Direct Payroll

$

1,634,76610.0%

$

3,269,53110.0%

$

3,367,61710.0%

$

3,468,64610.0%

$

3,572,70510.0%

Allocated General Expenses (student count method) Insurance

$

403,838

2.5%

$

403,838

1.2%

$

415,953

1.2%

$

428,432

1.2%

$

441,285

1.2%

Employee Reimbursements

$

50,014

0.3%

$

50,014

0.2%

$

51,514

0.2%

$

53,059

0.2%

$

54,651

0.2%

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

2.2%

$

357,930

1.1%

$

368,668

1.1%

$

379,728

1.1%

$

391,120

1.1%

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

$

1,042,7506.4%

$

1,042,7503.2%

$

1,074,0323.2%

$

1,106,2533.2%

$

1,139,4413.2%

EBITDA

$

8,205,56050.4%

$ 17,453,86953.6%

$ 17,977,48553.6%

$ 18,516,81053.6%

$ 19,072,31453.6%

Annual Debt Service

$

1,690,00010.4%

$

1,690,0005.2%

$

1,842,8455.5%

$

1,842,8455.3%

$

1,842,8455.2%

Net Cash Flow

$

6,515,56040.0%

$ 15,763,86948.4%

$ 16,134,64048.1%

$ 16,673,96548.3%

$ 17,229,46948.4%

DSCR

4.86x

10.33x

9.76x

10.05x

10.35x

EBITDA Multiplier

3.50x

3.50x

3.50x

3.50x

3.50x

EBITDA Multiplier - EBITDAM Value

$ 28,719,459

$ 61,088,542

$ 62,921,198

$ 64,808,834

$ 66,753,099

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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