NVI Technical College Information

Financial Feasibility

Sensitivity Analysis │ 10.0% 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

$

17,202

$

17,718

$

18,249

$

18,797

$

19,361

Books, Room & Board, fees

$

5,144

$

5,299

$

5,458

$

5,621

$

5,790

Sensitivity Analysis - Revenue Reduction

10.00%

Period

Year 6

Year 7

Year 8

Year 9

Year 10

Tuition

$ 28,210,87877.0%

$ 29,057,20577.0%

$ 29,928,92177.0%

$ 30,826,78877.0%

$ 31,751,59277.0%

Non Tuition

$

8,436,92723.0%

$

8,690,03423.0%

$

8,950,73523.0%

$

9,219,25723.0%

$

9,495,83523.0%

Gross Potential Revenue

$ 36,647,805100.0%

$ 37,747,239100.0%

$ 38,879,656100.0%

$ 40,046,046100.0%

$ 41,247,427100.0%

Operating Expenses Direct Expenses CaC

$

2,035,9895.6%

$

2,097,0695.6%

$

2,159,9815.6%

$

2,224,7805.6%

$

2,291,5245.6%

Student Acq Cost

$

3,230,2108.8%

$

3,327,1178.8%

$

3,426,9308.8%

$

3,529,7388.8%

$

3,635,6308.8%

Student GA (non-tuition employer paid expenses)

$

6,883,61218.8%

$

7,090,12018.8%

$

7,302,82418.8%

$

7,521,90918.8%

$

7,747,56618.8%

A

Total Direct Expenses

12,149,811 $

33.2%

$ 12,514,30633.2%

$ 12,889,73533.2%

$ 13,276,42733.2%

$ 13,674,72033.2%

Gross Income

$ 24,497,99466.8%

$ 25,232,93366.8%

$ 25,989,92166.8%

$ 26,769,61966.8%

$ 27,572,70866.8%

Product Direct Payroll

$

3,679,88610.0%

$

3,790,28310.0%

$

3,903,99110.0%

$

4,021,11110.0%

$

4,141,74410.0%

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

0.2%

$

57,979

0.2%

$

59,719

0.2%

$

61,510

0.2%

$

63,356

0.2%

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

1.1%

$

414,939

1.1%

$

427,387

1.1%

$

440,209

1.1%

$

453,415

1.1%

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

$

1,173,6243.2%

$

1,208,8333.2%

$

1,245,0983.2%

$

1,282,4513.2%

$

1,320,9243.2%

EBITDA

$ 19,644,48353.6%

$ 20,233,81853.6%

$ 20,840,83353.6%

$ 21,466,05753.6%

$ 22,110,03953.6%

Annual Debt Service

$

1,842,8455.0%

$

1,842,8454.9%

$

1,842,8454.7%

$

1,842,8454.6%

$

1,842,8454.5%

Net Cash Flow

$ 17,801,63848.6%

$ 18,390,97348.7%

$ 18,997,98748.9%

$ 19,623,21249.0%

$ 20,267,19449.1%

DSCR

10.66x

10.98x

11.31x

11.65x

12.00x

EBITDA Multiplier

3.50x

3.50x

3.50x

3.50x

3.50x

EBITDA Multiplier - EBITDAM Value

$ 68,755,692

$ 70,818,363

$ 72,942,914

$ 75,131,201

$ 77,385,137

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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