NVI Technical College Information

Financial Feasibility

Breakeven Analysis │ 46% 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

$

9,170

$

9,170

$

9,445

$

9,729

$

10,020

Books, Room & Board, fees

$

2,742

$

2,742

$

2,825

$

2,909

$

2,997

Sensitivity Analysis - Revenue Reduction

46.00%

Period

Year 1

Year 2

Year 3

Year 4

Year 5

Tuition

$

7,519,50077.0%

$ 15,039,00077.0%

$ 15,490,17077.0%

$ 15,954,87577.0%

$ 16,433,52177.0%

Non Tuition

$

2,248,83023.0%

$

4,497,66023.0%

$

4,632,59023.0%

$

4,771,56723.0%

$

4,914,71523.0%

Gross Potential Revenue

$

9,768,330100.0%

$ 19,536,660100.0%

$ 20,122,760100.0%

$ 20,726,443100.0%

$ 21,348,236100.0%

Operating Expenses Direct Expenses CaC

$

904,475

9.3%

$

1,808,9509.3%

$

1,863,2199.3%

$

1,919,1159.3%

$

1,976,6899.3%

Student Acq Cost

$

1,435,00014.7%

$

2,870,00014.7%

$

2,956,10014.7%

$

3,044,78314.7%

$

3,136,12614.7%

Student GA (non-tuition employer paid expenses)

$

3,058,00031.3%

$

6,116,00031.3%

$

6,299,48031.3%

$

6,488,46431.3%

$

6,683,11831.3%

A

Total Direct Expenses

5,397,475 $

55.3%

$ 10,794,95055.3%

$ 11,118,79955.3%

$ 11,452,36255.3%

$ 11,795,93355.3%

Gross Income

$

4,370,85544.7%

$

8,741,71044.7%

$

9,003,96144.7%

$

9,274,08044.7%

$

9,552,30344.7%

Product Direct Payroll

$

1,634,76616.7%

$

3,269,53116.7%

$

3,367,61716.7%

$

3,468,64616.7%

$

3,572,70516.7%

Allocated General Expenses (student count method) Insurance

$

403,838

4.1%

$

403,838

2.1%

$

415,953

2.1%

$

428,432

2.1%

$

441,285

2.1%

Employee Reimbursements

$

50,014

0.5%

$

50,014

0.3%

$

51,514

0.3%

$

53,059

0.3%

$

54,651

0.3%

Non Recurring Exp Budget

$

54,316

0.6%

$

54,316

0.3%

$

55,946

0.3%

$

57,624

0.3%

$

59,353

0.3%

Prof Svcs

$

120,350

1.2%

$

120,350

0.6%

$

123,961

0.6%

$

127,680

0.6%

$

131,510

0.6%

Utilities/HQ

$

357,930

3.7%

$

357,930

1.8%

$

368,668

1.8%

$

379,728

1.8%

$

391,120

1.8%

Software

$

56,301

0.6%

$

56,301

0.3%

$

57,990

0.3%

$

59,730

0.3%

$

61,522

0.3%

Total General Expenses sans Payroll

$

1,042,75010.7%

$

1,042,7505.3%

$

1,074,0325.3%

$

1,106,2535.3%

$

1,139,4415.3%

EBITDA

$

1,693,34017.3%

$

4,429,42922.7%

4,562,312 $

22.7%

$

4,699,18122.7%

$

4,840,15722.7%

Annual Debt Service

$

1,690,00017.3%

$

1,690,0008.7%

$

1,842,845 9.2%

$

1,842,8458.9%

$

1,842,8458.6%

Net Cash Flow

$

3,340

0.0%

$

2,739,42914.0%

$

2,719,46713.5%

$

2,856,33613.8%

$

2,997,31214.0%

DSCR

1.00x

2.62x

2.48x

2.55x

2.63x

EBITDA Multiplier

3.50x

3.50x

3.50x

3.50x

3.50x

EBITDA Multiplier - EBITDAM Value

$

5,926,689

15,503,002 $

$ 15,968,092

$ 16,447,135

$ 16,940,549

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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