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westbury

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									                2.2.1 - START-UP CAPITAL ASSUMPTIONS
                                 WESTBURY STORAGE PROPOSAL


ASSUMPTIONS ABOUT NEEDED ASSETS (capital items)
We will offer by June 1 of year 0 to purchase the building at 1400 Commercial Drive, in
   Westbury, New York. This is a 3 floor 60,000 sq ft warehouse in a commercially-zoned
   area. We must take possession of the property by July 1, so that studies of how to
   renovate the property can be made. Payment in full for the purchase is expected by
   August 15. Price = $567,430.
A contractor will begin to create an office and 388 storage units on the three floors inside the
   building, beginning on August 15. The office should be finished by October 15, and all
   storage units will be completed by December 15. An initial payment of $100,000 is due
   in August, with $50,000 to be paid each consecutive month until the job is complete.
   Total cost = $308,000.
Elevator refurbishment and upgrading will begin on September 15, and should be completed
   by November 15. The provider expects payment of $30,000 each month, beginning in
   September, with the ending balance due in November. Total cost = $92,000
Office furnishings and equipment will be purchased and installed by November 15. Total
   cost = $10,650
Equipment to assist customers in moving and storing goods (hand trucks, dray wagons, and
   locks) will be purchased and delivered by December 15. Total cost = $3,400
                      START-UP CAPITAL INVESTMENTS
                                   WESTBURY STORAGE PROPOSAL



    BUILDING                                                   $967,430
Building purchase (includes closing costs)       $567,430
Renovation and construction (units and office)   $308,000
Elevators refurbished                            $ 92,000

    OPERATING EQUIPMENT                                        $ 3,400
Hand trucks (6 @ $125 / assorted sizes)          $   750
Dray wagons (3 @ $450 / with large wheels)       $ 1,050
Red locks for unit security (400 @ $4)           $ 1,600

    OFFICE EQUIPMENT                                           $ 10,650
Desks and chairs (3 sets @ $1100)                $   3,300
Chairs, side and waiting (3 @ $250 + 4 @ $300)   $   1,950
File cabinets (3 @ $600)                         $   1,800
End tables and coffee table (2 @ $75 + $250)     $     400
Computers and printers (2 @ $1000)               $   2,000
Photocopier/Scanner/Fax Machine                  $     500
Furnishings (Drapes, etc)                        $     700
TOTAL START UP ASSETS NEEDED                                   $981,480
             2.2.2 - START-UP EXPENSE ASSUMPTIONS - 1

We plan to contact a lawyer to assist us in filing for limited liability corporation status (LLC). This
   needs to happen in early June (year 0). We expect all expenses (lawyer plus filing fees) to cost
   about $3000. The lawyer must be paid by July 1.

Property and liability insurance must be purchased as of July 1, year 0. Six months of coverage for
    July 1 to December 31 will cost about $5000. Once operations begin in year 1, property and
    liability insurance will cost $18000 per year, and must be paid (half) in January and July of each
    year. Insurance costs are expected to increase an additional 3% each year starting with year 2.

Property taxes for July to December (year 0) are $5975, and are payable in December. Once the
    facility opens (in year 1), property taxes are expected to be $25000 per year, and will increase
    about 3% per year thereafter.

As of July 1, year 0, utility expenses average $880 per month (water and sewer charges are $360/yr,
    electricity is $3000/yr, trash removal is $1200/yr, and heating expense is expected to be
    6000/yr). Thus total utilities costs are $10560 per year, and are not expected to change when we
    begin full operations in year 1. Beginning in year 2, we project that utilities costs will increase
    about 3% annually.

Telephone service will cost $90 per month. Currently there is no phone service in the building, but it
    will be installed once the office is occupied on November 1 (year 0). Starting in year 2, we
    expect phone costs to increase about 3% per year.
                  START-UP EXPENSE ASSUMPTIONS - 2

We will begin to advertise in December of year 0. We plan to advertise annually in the yellow pages
   ($900 per year, renewable in December) and monthly in local newspapers ($300/month). We
   will stop newspaper ads at the end of year 1. Yellow page ads will be placed each year, and
   costs are assumed to increase about 3% per year beginning in year 2.

When we set up our office, starting in November (year 0), we must purchase an accounting software
   package (like QuickBooks) and office supplies (envelopes, paper, stamps, forms, files, etc). We
   have allocated $800 for these initial purchases. Once operations begin, there will be an ongoing
   need for periodic purchases of envelopes, paper, forms, files, stamps, etc. We anticipate these
   costs to be $1000 in year 1, $2000 in year 2, and an annual increase of about 5% each year
   thereafter. Normally, these items will be replenished in November of each year.

Two employees will staff the facility: a manager and an office assistant. The assistant will not be
   hired until the facility opens in January 1 (year 1). The manager will be employed on July 1
   (year 0), and will oversee the preparation and development of the facility as it is renovated. He
   will be paid a salary of $30,000 per year with additional benefit costs of $9000 (30% of wages).
   Thus, labor costs for the period July 1 to December 31 (year 0) are expected to be $19,500 or
   $3250 per month. Once operations begin, the assistant will be hired with expected annual wages
   of $20800, and an additional $6240 (30%) for benefits. Starting with year 2, we anticipate labor
   costs (salaries plus benefit expenses) will increase an average of 6% per year.

No maintenance expenses will be incurred in year 0. Maintenance expenses are expected to be
   $18,000 in year 1. This is normally charged out on a monthly basis. We expect maintenance
   costs to increase 6% each year, starting in year 2.
              2.2.3 - ASSUMPTIONS ABOUT DEPRECIATION
                           AND UTILIZATION
ASSUMPTIONS ABOUT DEPRECIATION

Depreciation for equipment will be calculated on a straight-line basis, and allocated over five years.
   Thus, the annual equipment depreciation charge will be $2810 ($14,050/5 = $2810), beginning
   in year 1 and ending in year 5.

Building depreciation will be calculated on a straight-line basis, and allocated over forty years.
    Thus, $24186 of building depreciation will be charged against annual operations ($967,430/40 =
    $24186), beginning in year 1, and ending in year 40.

UTILIZATION/OCCUPANCY ASSUMPTIONS
Our three sales forecasts make the following assumptions about utilization or occupancy in years 1, 2
    and beyond:
                       Year 1                Year 2                Years 3+
Optimistic             60%                   100%                  100%
Most Likely            50%                   95%                   95%
Pessimistic:           35%                   70%                   70%

All three scenarios assume upper floor rates will gradually be raised in years 2 and 3 to match the
     rates charged for first floor renters (see next chart). Furthermore, we have assumed that rates
     will rise by roughly 4 - 5% per year, beginning in year 4. These rate increases for years 4-7 are
     assumed for both the optimistic and most likely scenarios. The pessimistic scenario assumes
     that heavy competition will force us to not raise rates in year 4. Modest 2% rate increases are
     assumed for years 5-7.
                      2.3 - INITIAL FUNDING SOURCES
                                WESTBURY STORAGE PROPOSAL

START UP ASSUMPTIONS ABOUT EQUITY AND DEBT (and timeline):
We do not expect to turn a profit or break-even until year 2. Initial investment costs and
   operating expenses are large, and will badly deplete cash in the start up phase and in the
   initial year of operation. Thus, we need significant equity funding from the owners, as
   well as favorable terms from those lending institutions who are comfortable with us.
   Once we achieve full occupancy, the full profit potential of this venture will be realized.

The owners must contribute at least $400000 of equity to capitalize this venture. Cash flow
   projections have revealed that this amount is needed to keep sufficient working capital
   in the firm during the first year and a half of operation. Thus, no equity or capital
   should be removed from this venture by the owners for at least two years. Initial
   investment of $400,000 will be used to establish a checking account on June 1-yr 0.

We plan to obtain a fixed-rate mortgage to fund the purchase and renovation of the
   building. The bank will finance 70% of our investment in the building (which will be
   $967,430), and will give us a 40-year, fixed-rate loan at 8%. Thus the loan will be for
   $677,200, and the proceeds will be available to us at the closing in August (year 0).
   Monthly loan payments of $5580 will begin in October (year 0).
We have negotiated a short-term 8% (one-year) loan with an equipment supplier to help
  purchase our office equipment. We will receive the $8000 loan in November, when we
  take delivery of the office equipment. Loan payments of $696 are due each month,
  starting the end of November (year 0), and ending with the October (year 1) payment.
                     2.4 - LOCATION AND FACILITIES
                               WESTBURY STORAGE PROPOSAL


THE FACILITY
      ASSUMPTIONS ABOUT THE PROPOSED FACILITY:
      We plan to renovate a 3-story building, 241 ft x 81 feet (inside dimensions)
      About 6200 sq ft will be used for walkways, elevators, etc. on each floor
      An office and storage spaces will occupy 1300 sq ft on the first floor
      Partitions and walls will take up between 1500-1800 sq ft on each floor
      This leaves us roughly 10500-12000 sq ft of rentable floor space per floor
      388 storage units will be constructed on the three floors as noted below:

NUMBER AND TYPE OF STORAGE UNITS TO BE BUILT ON EACH FLOOR

Sq Ft / Unit       1st Floor          2nd Floor       3rd Floor          TOTAL
25 (5x5)           -0-                21 units        21 units            42 units
50 (5x10)          43 units           43 units        36 units           122 units
100 (10x10)        51 units           41 units        44 units           136 units
150 (10x15)        22 units           33 units        33 units            88 units

See Floor Plans that follow:                                      TOTAL 388 units
               3.1 – SERVICE ASSUMPTIONS
                     WESTBURY STORAGE PROPOSAL


We intend to offer the four most popular sizes of storage units:
5x5, 5x10, 10x10 and 10x15.

These units will be located on all three floors of our building.

We are installing a high-speed elevator with extra large capacity
to transport patrons and their goods to the 2nd and 3rd floors.

We will provide (free of charge) several large, easy-to-roll
dollies and dray wagons to help customers transport their goods
between the docking area and their storage units.
                   3.3 – COMPETITOR RESEARCH
                              WESTBURY STORAGE PROPOSAL

11 Competitors in the area…what size storage units does each offer?...and at what price?

Name                           Size                 Sq Ft     Price/Mo
Oliver St. Mini Storage        5X10                 50        $48
    “                          10X10                100       $75
E_Z Mini Storage               5X5                  25        $37
S. Centreport                  5X10                 50        $67 +$25 dep
Extra Space Storage            5X5                  25        $49 + $9 fee
    “                          10X10                100       $106 (2nd floor)
    “                          10X10                100       $139 (ground floor)
Washington Mini-Storage        8X6                  48        $50
47 State Street Storage        9X9                  81        $50 (2nd floor)
Public Storage                 5X5                  25        $35
Pack Rat Self-Storage          5X10                 50        $55
    “                          10X10                100       $95
    “                          10X15                150       $129
    “                          10X20                200       $147
North Shore Self-Storage       5X5                  25        $45 + $5 fee
Willie's Storage               5X10                 50        $70 (2nd floor)
    “                          10X15                150       $130
U-Haul Self-Storage            5X10                 50        $42.95
    “                          10X10                100       $95
                 COMPETITOR RESEARCH SUMMARY

COMPETITOR SUMMARY
BY TYPE OF UNITS RENTED

# Facilities that offer…                 Price/Mo           Sq Ft          Mo Rev/Sq Ft
        4          (5x5)                 $45                    25         $1.80
        6          (5x10)                $55.50                 48-50      $1.11
        1          (9x9)                 $50                    75-81      $0.6173
        5          (10x10)               $102                   100        $1.02
        2          (10x15)               $129.50                150        $0.8633
        1          (10x20)               $147                   200        $0.735

  Most of these competitors were fully rented out (95%+ occupied) with very few available units.

  Thus, we assume that we should be able to attain a high occupancy rate once we are known in the
  community…further assuming we charge “reasonable” or going rates for our storage services.
                3.4 - MARKET DEMAND ASSUMPTIONS
                                 WESTBURY STORAGE PROPOSAL

Occupancy rates among competitor storage facilities are currently between 90% and 100%. Several
of these businesses didn’t have any spaces available…they were fully rented when we were
gathering price information. This bodes well for our business, since we shouldn’t have much trouble
keeping our units fully rented once the public becomes aware of our new facility. Thus, we assume
(…our most likely scenario) that during the first year of operation, our occupancy rate will average
about 50%. By the end of the first year (…or at the beginning of year 2), we will have achieved
about a 95% utilization/occupancy rate which we should be able to maintain.

For forecasting purposes, we have made the following assumptions about the average utilization or
occupancy rates in years 1, 2 and beyond:

                              Year 1                 Year 2                Years 3+
Optimistic                    60%                    100%                  100%
Most Likely                   50%                    95%                   95%
Pessimistic:                  35%                    70%                   70%

All three scenarios assume that upper floor rates will gradually be raised in years 2 and 3 to match
the rates charged for first floor renters (see next chart).

In the optimistic and most likely scenarios, we assume that rental rates will rise by 4 - 5% each
year, beginning in year 4.
The pessimistic scenario assumes no rate increase in year 4 because of increased competition. A
modest rate increase of 2% per year is projected for years 5, 6, and 7.
                      3.5 - PRICING ASSUMPTIONS
                               WESTBURY STORAGE PROPOSAL


• We need to keep our prices competitive for the first year if we want to fill up
  our facility. (See 3.3 Competitor Summary)
• We will charge $10 more per month for our first floor storage units because
  of convenience…but prices on floors 2 and 3 will match the competition.
• Except for the (5x5) units, we will gradually raise our unit rates on the upper
  floors by $5 per month in year 2, and again in year 3, so that rental rates will
  be the same for all floors by year 3.
   Size of Rental Unit         Avg Compet Price/Mo     Our Price/Mo – Yr 1
                                                       1st Floor 2nd/3rd Floor
   (5x5)          25 SQ FT            $45              ----        $ 45
   (5x10)         50 SQ FT            $55.50           $ 65        $ 55
   (10x10)        100  SQ FT          $102             $110        $100
   (10x15)        150  SQ FT          $129.50          $140        $130
                 3.5.1 – SEVEN YEAR PRICING PLAN
                          OPTIMISTIC & MOST LIKELY SCENARIOS



Unit Size        Price/Mo - Yr 1           Price/Mo – Yr 2         Price/Mo - Yr 3
                 1st Floor 2nd/3rd Flr     1st Floor 2nd/3rd Flr   1st Floor 2nd/3rd Flr

   (5x5)         ----        $ 45           ----         $ 45      ----        $ 45
   (5x10)        $ 65        $ 55           $ 65         $ 60      $ 65        $ 65
   (10x10)       $110        $100           $110        $105       $110        $110
   (10x15)       $140        $130           $140        $135       $140        $140
Starting in Year 4, rates will be raised an additional 4% - 5% each year.
   Unit Size     Year 4                  Year 5             Year 6           Year 7
   (5x5)         $47/mo                  $49/mo             $51/mo           $53/mo
   (5x10)        $68/mo                  $71/mo             $74/mo           $77/mo
   (10x10)       $115/mo                 $120/mo            $125/mo          $130/mo
   (10x15)       $147/mo                 $154/mo            $162/mo          $170/mo
                3.5.2 – SEVEN YEAR PRICING PLAN
                                 PESSIMISTIC SCENARIO


Unit Size       Price/Mo - Yr 1           Price/Mo – Yr 2         Price/Mo - Yr 3
                1st Floor 2nd/3rd Flr     1st Floor 2nd/3rd Flr   1st Floor 2nd/3rd Flr

   (5x5)        ----        $ 45           ----         $ 45      ----        $ 45
   (5x10)       $ 65        $ 55           $ 65         $ 60      $ 65        $ 65
   (10x10)      $110        $100           $110        $105       $110        $110
   (10x15)      $140        $130           $140        $135       $140        $140
No change in rates for Year 4…Rates increase roughly 2% in Years 5-7.
   Unit Size    Year 4                  Year 5             Year 6           Year 7
   (5x5)        $45/mo                  $46/mo             $47/mo           $48/mo
   (5x10)       $65/mo                  $66/mo             $67/mo           $68/mo
   (10x10)      $110/mo                 $112/mo            $114/mo          $116/mo
   (10x15)      $140/mo                 $143/mo            $146/mo          $149/mo
                      3.6.1 - MONTHLY REVENUE FORECASTS
                                OPTIMISTIC & MOST LIKELY SCENARIOS


Revenues per Month if 100% Occupied
Unit Size           # Units               Year 1            Year 2              Year 3
  (5x5)             42                    $1890             $1890               $1890
  (5x10)            122                   $7140             $7535               $7930
  (10x10)           136                   $14110            $14535              $14960
  (10x15)           88                    $11660            $11990              $12320

Revenue/Mo      (…if 100% rented)         $34800            $35950              $37100

   Year             Year 4                Year 5            Year 6              Year 7
   (5x5)            $1974                 $2058             $2142               $2226
   (5x10)           $8296                 $8662             $9028               $9394
   (10x10)          $15640                $16320            $17000              $17680
   (10x15)          $12936                $13552            $14256              $14960

Revenue/Mo          $38846                $40592            $42426              $44260
THE ABOVE PROJECTIONS FOR YEARS 4-7 ASSUME RATES GO UP ROUGHLY 4-5% EACH YEAR
                           3.6.2 - MONTHLY REVENUE FORECASTS
                                               PESSIMISTIC S CENARIO

Revenues Generated per Month if 100% Occupied
Unit Size                # Units                   Year 1                   Year 2                    Year 3
  (5x5)                  42                        $1890                    $1890                     $1890
  (5x10)                 122                       $7140                    $7535                     $7930
  (10x10)                136                       $14110                   $14535                    $14960
  (10x15)                88                        $11660                   $11990                    $12320

Revenue/Mo           (…if 100% rented)             $34800                   $35950                    $37100

    Year                 Year 4                    Year 5                   Year 6                    Year 7
    (5x5)                $1890                     $1932                    $1974                     $2016
    (5x10)               $7930                     $8052                    $8174                     $8296
    (10x10)              $14960                    $15232                   $15504                    $15776
    (10x15)              $12320                    $12584                   $12848                    $13112

Revenue/Mo               $37100                    $37800                   $38500                    $39200
PROJECTIONS FOR THE PESSIMISTIC SCENARIO FOR YEARS 4-7 (NO INCREASE IN YEAR 4, AND JUST A 2% INCREASE IN YEARS 5-7)
    3.7.1 – PESSIMISTIC SALES FORECASTS FOR 7 YEARS

PESSIMISTIC SALES FORECAST:
   Revenue projections for the first year of operation are based on an average
  occupancy of just 35%. All other projections (year 2 and onward) assume that
  only 70% of the spaces will be rented. Rental rates will not be increased in
  year 4 due to competitive pressures, but rates will increase 2 % in years 5-7.

PESSIMISTIC REVENUE PROJECTIONS
                    YEAR 1      YEAR 2                              YEAR 3
                            Utilization = .35   Utilization = .70   Utilization = .70

Total Revenue/Month         $12180              $25165              $25970
Annual Revenues             $146160             $301980             $311640

        YEAR 4              YEAR 5              YEAR 6              YEAR 7
        Utilization = .70   Utilization = .70   Utilization = .70   Utilization = .70

Mo     $25970               $26460              $26950              $27440
Annual $311640              $317520             $323400             $329280
3.7.2 – MOST LIKELY SALES FORECASTS FOR 7 YEARS

MOST LIKELY SALES FORECAST:
   Revenue projections for the first year of operation are based on an average
  occupancy of just 50%. All other projections (year 2 and onward) assume
  that 95% of the spaces will be rented.

MOST LIKELY REVENUE PROJECTIONS
                   YEAR 1       YEAR 2                              YEAR 3
                            Utilization = .50   Utilization = .95   Utilization = .95

Total Revenue/Month         $17400              $34152.50           $35245
Annual Revenues             $208800             $409830             $422940

        YEAR 4              YEAR 5              YEAR 6              YEAR 7
        Utilization = .95   Utilization = .95   Utilization = .95   Utilization = .95

Mo     $36903.70            $38562.40           $40304.70           $42047
Annual $442844              $462749             $483656             $504564
    3.7.3 - OPTIMISTIC SALES FORECASTS FOR 7 YEARS

OPTIMISTIC SALES FORECAST:
  Revenue projections for the first year of operation are based on an average
  occupancy of just 60%. All other projections (year 2 and onward) assume
  that 100% of the spaces will be rented.

OPTIISTIC REVENUE PROJECTIONS
                    YEAR 1                        YEAR 2               YEAR 3
                             Utilization = .60    Utilization = 1.00   Utilization = 1.00

Total Revenue/Month          $20880               $35950               $37100
Annual Revenues              $250560              $431400              $445200

        YEAR 4               YEAR 5               YEAR 6               YEAR 7
        Utilization = 1.00   Utilization = 1.00   Utilization = 1.00   Utilization = 1.00

Mo     $38846                $40592               $42426               $44260
Annual $466152               $487104              $509112              $531120
                5.2.1 – PESSIMISTIC INCOME STATEMENTS
                                           FOR YEARS 0 - 7


Income Stmts          Yr 0*     Yr 1      Yr 2      Yr 3     Yr 4     Yr 5     Yr 6     Yr 7

INCOME                -0-       146160    301980    311640   311640   317520   323400   329280

Operating Expenses
Labor + Benefits      19500     66000     69960     74158    78607    83323    88322    93621
Legal/Office Supp     3800      1000      2000      2100     2205     2315     2431     2553
Insurance             5000      18000     18540     19652    20242    20849    21474    22118
Prop Taxes            5975      25000     25750     26523    27319    28139    28983    29852
Utilities + Phone     5460      11640     11989     12348    12718    13100    13493    13898
Advertising           1200      4500      927       955      984      1014     1044     1075
Maintenance           -0-       18000     19080     20225    21439    22725    24089    25534
Total Expenses        40935     144140    148246    155961   163514   171465   179836   188651
EBITDA                (40935)   2020      153734    155679   148126   146055   143564   140629

Depreciation          -0-       26996     26996     26996    26996    26996    24186    24186
Operating Income      (40935)   (24976)   126738    128683   121130   119059   119378   116443
Short-term Note Int   104       248       -0-
Mortgage Interest     13522     53490     52458     51426    50394    49362    48330    47298
Total Interest Exp    13626     53738     52458     51426    50394    49362    48330    47298
Earnings before Tax   (54561)   (78714)   74280     77257    70736    69697    71048    69145
Income Taxes (0%)     -0-       -0-       -0-       -0-      -0-      -0-      -0-      -0-

NET INCOME            (54561)   (78714)   74280     77257    70736    69697    71048    69145
               5.2.2 – MOST LIKELY INCOME STATEMENTS
                                           FOR YEARS 0 - 7

Income Stmts          Yr 0*     Yr 1      Yr 2      Yr 3     Yr 4     Yr 5     Yr 6     Yr 7

INCOME                -0-       208800    409830    422940   442844   462749   483656   504564

Operating Expenses
Labor + Benefits      19500     66000     69960     74158    78607    83323    88322    93621
Legal/Office Supp     3800      1000      2000      2100     2205     2315     2431     2553
Insurance             5000      18000     18540     19096    19669    20259    20867    21493
Prop Taxes            5975      25000     25750     26523    27319    28139    28983    29852
Utilities + Phone     5460      11640     11989     12348    12718    13100    13493    13898
Advertising           1200      4500      927       955      984      1014     1044     1075
Maintenance           -0-       18000     19080     20225    21439    22725    24089    25534
Total Expenses        40935     144140    148246    155961   163514   171465   179836   188651
EBITDA                (40935)   64660     261584    266979   279330   291284   303820   315913

Depreciation          -0-       26996     26996     26996    26996    26996    24186    24186
Operating Income      (40935)   37664     234588    239983   252334   264288   279634   291727
Short-term Note Int   104       248       -0-
Mortgage Interest     13522     53490     52458     51426    50394    49362    48330    47298
Total Interest Exp    13626     53738     52458     51426    50394    49362    48330    47298
Earnings before Tax   (54561)   (16074)   182130    188557   201940   214926   231304   244429
Income Taxes (0%)     -0-       -0-       -0-       -0-      -0-      -0-      -0-      -0-

NET INCOME            (54561)   (16074)   182130    188557   201940   214926   231304   244429
                 5.2.3 - OPTIMISTIC INCOME STATEMENTS
                                          FOR YEARS 0 - 7


Income Stmts          Yr 0*     Yr 1     Yr 2      Yr 3     Yr 4     Yr 5     Yr 6     Yr 7

INCOME                -0-       250560   431400    445200   466152   487104   509112   531120

Operating Expenses
Labor + Benefits      19500     66000    69960     74158    78607    83323    88322    93621
Legal/Office Supp     3800      1000     2000      2100     2205     2315     2431     2553
Insurance             5000      18000    18540     19652    20242    20849    21474    22118
Prop Taxes            5975      25000    25750     26523    27319    28139    28983    29852
Utilities + Phone     5460      11640    11989     12348    12718    13100    13493    13898
Advertising           1200      4500     927       955      984      1014     1044     1075
Maintenance           -0-       18000    19080     20225    21439    22725    24089    25534
Total Expenses        40935     144140   148246    155961   163514   171465   179836   188651
EBITDA                (40935)   106420   283154    289239   302638   315639   329276   342469

Depreciation          -0-       26996    26996     26996    26996    26996    24186    24186
Operating Income      (40935)   79424    256158    262243   275642   288643   305090   318283
Short-term Note Int   104       248      -0-
Mortgage Interest     13522     53490    52458     51426    50394    49362    48330    47298
Total Interest Exp    13626     53738    52458     51426    50394    49362    48330    47298
Earnings before Tax   (54561)   25686    203700    210817   225248   239281   256760   270985
Income Taxes (0%)     -0-       -0-      -0-       -0-      -0-      -0-      -0-      -0-

NET INCOME            (54561)   25686    203700    210817   225248   239281   256760   270985
                     5.3.1 - PESSIMISTIC BALANCE SHEETS
                                             FOR YEARS 0 - 7
Balance Sheets       Yr 0*     Yr 1       Yr 2     Yr 3        Yr 4      Yr 5       Yr 6       Yr 7

Cash                 44653     (27247)*   59527     148246     229412    308507     385111     458780

Equipment            14050     14050      14050     14050      14050     14050      14050      14050
 Accum Deprec                  (2810)     (5620)    (8430)     (11240)   (14050)    (14050)    (14050)

Building             967430    967430     967430    967430     967430    967430     967430     967430
 Accum Deprec                  (24186)    (48372)   (72558)    (96744)   (120930)   (145116)   (169302)
Net Fixed Assets     981480    954484     927488    900492     873496    846500     822314     798128

TOTAL ASSETS         1026133   927237     987015    1048738    1102908   1155007    1207425    1256908

Short-term Note      6712      -----
Current Mtge Pmts    13470     14502      15534     16566      17598     18630      19662      20694

Long-term Mortgage   660512    646010     630476    613910     596312    577682     558020     537326
Total Liabilities    680694    660512     646010    630476     613910    596312     577682     558020

Paid-in Capital      400000    400000     400000    400000     400000    400000     400000     400000
Loss at Start up     (54561)   (54561)
Retained Earnings              (78714)    (58995)    18262      88998    158695     229743     298888
Total Equity         345439    266725     341005    418262     488998    558695     629743     698888

TOT DEBT+EQTY        1026133   927237     987015    1048738    1102908   1155007    1207425    1256908
                     5.3.2 - MOST LIKELY BALANCE SHEETS
                                            FOR YEARS 0 - 7

Balance Sheets       Yr 0*     Yr 1      Yr 2      Yr 3       Yr 4      Yr 5       Yr 6       Yr 7

Cash                 44653     35393     230017    430036     642406    866730     1103590    1352543

Equipment            14050     14050     14050     14050      14050     14050      14050      14050
 Accum Deprec                  (2810)    (5620)    (8430)     (11240)   (14050)    (14050)    (14050)

Building             967430    967430    967430    967430     967430    967430     967430     967430
 Accum Deprec                  (24186)   (48372)   (72558)    (96744)   (120930)   (145116)   (169302)
Net Fixed Assets     981480    954484    927488    900492     873496    846500     822314     798128

TOTAL ASSETS         1026133   989877    1157505   1330528    1515902   1713230    1925904    2150671

Short-term Note      6712      -----
Current Mtge Pmts    13470     14502     15534     16566      17598     18630      19662      20694

Long-term Mortgage   660512    646010    630476    613910     596312    577682     558020     537326
Total Liabilities    680694    660512    646010    630476     613910    596312     577682     558020

Paid-in Capital      400000    400000    400000    400000     400000    400000     400000     400000
Loss at Start up     (54561)   (54561)
Retained Earnings              (16074)   111495    300052     501992    716918     948222     1192651
Total Equity         345439    329365    511495    700052     901992    1116918    1348222    1592651

TOT DEBT+EQTY        1026133   989877    1157505   1330528    1515902   1713230    1925904    2150671
                     5.3.3 - OPTIMISTIC BALANCE SHEETS
                                           FOR YEARS 0 - 7

Balance Sheets       Yr 0*     Yr 1      Yr 2      Yr 3      Yr 4      Yr 5       Yr 6       Yr 7

Cash                 44653     77153     293347    515626    751304    999983     1262299    1537808

Equipment            14050     14050     14050     14050     14050     14050      14050      14050
 Accum Deprec                  (2810)    (5620)    (8430)    (11240)   (14050)    (14050)    (14050)

Building             967430    967430    967430    967430    967430    967430     967430     967430
 Accum Deprec                  (24186)   (48372)   (72558)   (96744)   (120930)   (145116)   (169302)
Net Fixed Assets     981480    954484    927488    900492    873496    846500     822314     798128

TOTAL ASSETS         1026133   1031637   1220835   1416118   1624800   1846483    2084613    2335936

Short-term Note      6712      -----
Current Mtge Pmts    13470     14502     15534     16566     17598     18630      19662      20694

Long-term Mortgage   660512    646010    630476    613910    596312    577682     558020     537326
Total Liabilities    680694    660512    646010    630476    613910    596312     577682     558020

Paid-in Capital      400000    400000    400000    400000    400000    400000     400000     400000
Loss at Start up     (54561)   (54561)
Retained Earnings               25686    174825    385642    610890    850171     1106931    1377916
Total Equity         345439    371125    574825    785642    1010890   1250171    1506931    1777916

TOT DEBT+EQTY        1026133   1031637   1220835   1416118   1624800   1846483    2084613    2335936
           5.4.0 - MONTHLY CASH-FLOWS FOR YEAR 0 (June 1 – Dec 31)
                                         ALL SCENARIOS
Cash Flows            June     July     Aug      Sep      Oct      Nov      Dec      TOTAL
BEGIN CASH            -0-      400000   387870   393510   309380   219670   123724

Add Stock sales       400000                                                          400000
Add Loans                               677200                      8000              685200

Start up Assets
Building                                567430                                        567430
Construction                            100000   50000    50000    50000    58000     308000
Elevators                                        30000    30000    32000               92000
Equipment                                                 10650     3400    14050
Less Capital Assets                     667430   80000    80000    92650    61400     981480

Operating Expenses
Labor                          3250     3250     3250     3250     3250     3250      19500
Legal+Office Exp               3000                                 800                3800
Insurance + PrTax              5000                                         5975      10975
Utilities + Phone              880      880      880      880      970       970       5460
Advertisement                                                               1200       1200
ST Note Pmts                                                        696      696       1392
LT Mtge Pmts                                              5580     5580     5580      16740
Less Operating Exp             12130    4130     4130     9710     11296    17671     59067

END CASH              400000   387870   393510   309380   219670   123724   44653     44653
                          5.4.1 - WESTBURY STORAGE
         MONTHLY CASH-FLOWS FOR YEAR 1 (January 1 – June 30) PESSIMISTIC

Year 1A - Cash              Jan     Feb     Mar     Apr       May       Jun
BEGIN CASH                  44653   22981   12183   3259      (3791)*   (8967)*
Less Operating Expenses
Labor + Benefits            5500    5500    5500    5500      5500      5500
Office Supplies
Insurance                   9000
Property Taxes
Utilities + Phone           970     970     970     970       970       970
Advertisement               300     300     300     300       300       300
Maintenance                 1500    1500    1500    1500      1500      1500
Less Operating Expenses     17270   8270    8270    8270      8270      8270

ST Note Payments            696     696     696     696        696       696
Mortgage Payments           5580    5580    5580    5580      5580      5580
Less Debt Repaid (P+I)      6276    6276    6276    6276      6276      6276

Add Monthly Receipts        1874    3748    5622    7496      9370      11244

END CASH                    22981   12183   3259    (3791)*   (8967)*   (12269)*
                          WESTBURY STORAGE
           MONTHLY CASH-FLOWS FOR YEAR 1 (July 1 – Dec 31) PESSIMISTIC

Year 1B - Cash            July      Aug       Sep       Oct       Nov       Dec
BEGIN CASH                (12269)   (22697)   (22251)   (19931)   (15737)   (9973)
Less Operating Expenses
Labor + Benefits          5500      5500      5500      5500      5500      5500
Office Supplies                                                   1000
Insurance                 9000
Property Taxes                                                              25000
Utilities + Phone         970       970       970       970       970       970
Advertisement             300       300       300       300       300       1200
Maintenance               1500      1500      1500      1500      1500      1500
Less Operating Expenses   17270     8270      8270      8270      9270      34170

ST Note Payments          696       696       696       696
Mortgage Payments         5580      5580      5580      5580      5580      5580
Less Debt Repaid (P+I)    6276      6276      6276      6276      5580      5580

Add Monthly Receipts      13118     14992     16866     18740     20614     22476

END CASH                  (22697)   (22251)   (19931)   (15737)   (9973)    (27247)
                          WESTBURY STORAGE
         MONTHLY CASH-FLOWS FOR YEAR 2 (January 1 – June 30) PESSIMISTIC

Year 2A - Cash            Jan       Feb       Mar       Apr      May     Jun
BEGIN CASH                (27247)* (25351)    (14185)   (3019)   8147    19313
Less Operating Expenses
Labor + Benefits          5830      5830      5830      5830     5830    5830
Office Supplies
Insurance                 9270
Property Taxes
Utilities + Phone         999       999       999       999      999     999
Advertisement
Maintenance               1590      1590      1590      1590     1590    1590
Less Operating Expenses   17689     8419      8419      8419     8419    8419

ST Note Payments
Mortgage Payments         5580      5580      5580      5580     5580    5580
Less Debt Repaid (P+I)    5580      5580      5580      5580     5580    5580

Add Monthly Receipts      25165     25165     25165     25165    25165   25165

END CASH                  (25351)   (14185)   (3019)    8147     19313   30479
                          WESTBURY STORAGE
           MONTHLY CASH-FLOWS FOR YEAR 2 (July 1 – Dec 31) PESSIMISTIC

Year 2B - Cash            Jul      Aug     Sep     Oct      Nov     Dec
BEGIN CASH                30479    32375   43541   54707    65873   75039
Less Operating Expenses
Labor + Benefits          5830     5830    5830    5830     5830    5830
Office Supplies                                             2000
Insurance                 9270
Property Taxes                                                      25750
Utilities + Phone         999      999     999     999      999     999
Advertisement                                                       927
Maintenance               1590     1590    1590    1590     1590    1590
Less Operating Expenses   17689    8419    8419    8419     10419   35096

Less Mortgage Payments    5580     5580    5580    5580     5580    5580
Less Debt Repaid (P+I)    5580     5580    5580    5580     5580    5580


Add Monthly Receipts      25165    25165   25165   25165    25165   25165


END CASH                  32375    43541   54707   65873    75039   59528
                             5.4.1.1 - WESTBURY STORAGE
                    PESSIMISTIC CASH FLOW PROJECTIONS FOR YEARS 1 - 7

Cash Flow Projection Yr 0*     Yr 1       Yr 2     Yr 3     Yr 4     Yr 5     Yr 6     Yr 7

BEGIN CASH           -0-       44653      (27247)* 59527    148246   229412   308507   385111

Add Oper Income      (40935)    (24976)   126738   128683   121130   119059   119378   116443
Add Depreciation     -0-       26996      26996    26996    26996    26996    24186    24186
Less Income Taxes    -0-       -0-
Operating Adjust     (40935)   2020       153734   155679   148126   146055   143564   140629

Add Stock Sales      400000    -0-
Add Loan Proceeds    685200    -0-

Less Acquired Assets 981480    -0-
Less Payments (I+P)
    Interest         13626     53738      52458    51426    50394    49362    48330    47298
    Principal Pmts   4506      20182      14502    15534    16566    17598    18630    19662

END CASH             44653     (27247)* 59527      148246   229412   308507   385111   458780
                          5.4.2 - WESTBURY STORAGE
        MONTHLY CASH-FLOWS FOR YEAR 1 (January 1 – June 30) MOST LIKELY

Year 1A - Cash              Jan     Feb     Mar     Apr     May     Jun
BEGIN CASH                  44653   23784   14592   8077    4239    3078
Less Operating Expenses
Labor + Benefits            5500    5500    5500    5500    5500    5500
Office Supplies
Insurance                   9000
Property Taxes
Utilities + Phone           970     970     970     970     970     970
Advertisement               300     300     300     300     300     300
Maintenance                 1500    1500    1500    1500    1500    1500
Less Operating Expenses     17270   8270    8270    8270    8270    8270

ST Note Payments            696     696     696     696      696     696
Mortgage Payments           5580    5580    5580    5580    5580    5580
Less Debt Repaid (P+I)      6276    6276    6276    6276    6276    6276

Add Monthly Receipts        2677    5354    8031    10708   13385   16062

END CASH                    23784   14592   8077    4239    3078    4594
                          WESTBURY STORAGE
          MONTHLY CASH-FLOWS FOR YEAR 1 (July 1 – Dec 31) MOST LIKELY

Year 1B - Cash            July    Aug     Sep     Oct     Nov     Dec
BEGIN CASH                4594    (213)   6657    16204   28428   43025
Less Operating Expenses
Labor + Benefits          5500    5500    5500    5500    5500    5500
Office Supplies                                           1000
Insurance                 9000
Property Taxes                                                    25000
Utilities + Phone         970     970     970     970     970     970
Advertisement             300     300     300     300     300     1200
Maintenance               1500    1500    1500    1500    1500    1500
Less Operating Expenses   17270   8270    8270    8270    9270    34170

ST Note Payments          696     696     696     696
Mortgage Payments         5580    5580    5580    5580    5580    5580
Less Debt Repaid (P+I)    6276    6276    6276    6276    5580    5580

Add Monthly Receipts      18739   21416   24093   26770   29447   32118

END CASH                  (213)   6657    16204   28428   43025   35393
                             5.4.2.1 - WESTBURY STORAGE
                    MOST LIKELY CASH FLOW PROJECTIONS FOR YEARS 1 - 7

Cash Flow Projection Yr 0*     Yr 1    Yr 2     Yr 3     Yr 4     Yr 5     Yr 6     Yr 7

BEGIN CASH           -0-       44653   35393    230017   430036   642406   866730   1103590

Add Oper Income      (40935)   37664   234588   239983   252334   264288   279634   291727
Add Depreciation     -0-       26996   26996    26996    26996    26996    24186    24186
Less Income Taxes    -0-       -0-
Operating Adjust     (40935)   64660   261584   266979   279330   291284   303820   315913

Add Stock Sales      400000    -0-
Add Loan Proceeds    685200    -0-

Less Acquired Assets 981480    -0-
Less Payments (I+P)
    Interest         13626     53738   52458    51426    50394    49362    48330    47298
    Principal Pmts   4506      20181   14502    15534    16566    17598    18630    19662

END CASH             44653     35393   230017   430036   642406   866730   1103590 1352543
                             5.4.3.1. - WESTBURY STORAGE
                    OPTIMISTIC CASH FLOW PROJECTIONS FOR YEARS 1 - 7

Cash Flow Projection Yr 0*     Yr 1     Yr 2     Yr 3     Yr 4     Yr 5     Yr 6     Yr 7

BEGIN CASH          -0-        44653    77153    293347   515626   751304   999983   1262299

Add Oper Income     (40935)    79424    256158   262243   275642   288643   305090   318283
Add Depreciation    -0-        26996    26996    26996    26996    26996    24186    24186
Less Income Taxes   -0-
Operating Adjust    (40935)    106420   283154   289239   302638   315639   329276   342469

Add Stock Sales     400000     -0-
Add Loan Proceeds   685200     -0-

Less Acquired Assets 981480    -0-
Less Payments (I+P)
    Interest         13626     53738    52458    51426    50394    49362    48330    47298
    Principal Pmts   4506      20181    14502    15534    16566    17598    18630    19662

END CASH            44653      77153    293347   515626   751304   999983   1262299 1537808
                             5.5 - WESTBURY STORAGE
           PROFITABILITY RATIOS FOR YEARS 1 –7 UNDER 3 MARKET SCENARIOS

                    Yr 0*     Yr 1     Yr 2   Yr 3   Yr 4   Yr 5   Yr 6   Yr 7

OPTIMISTIC
Return on Assets    (.040)    .077     .210   .185   .170   .156   .146   .136
Return on Equity    (.158)    .069     .354   .268   .223   .191   .170   .152
Net Profit Margin   -----     .103     .472   .474   .483   .491   .504   .510
MOST LIKELY
Return on Assets    (.040)    .038     .203   .180   .166   .154   .145   .136
Return on Equity    (.158)    (.049)   .356   .269   .224   .192   .172   .153
Net Profit Margin   -----     (.077)   .444   .446   .456   .464   .478   .484
PESSIMISTIC
Return on Assets    (.040)    (.027)   .128   .123   .110   .103   .099   .093
Return on Equity    (.158)    (.295)   .218   .184   .145   .125   .113   .099
Net Profit Margin   -----     (.539)   .246   .248   .227   .220   .220   .210

ROA = Operating Income/Total Assets
ROE = Net Income/Total Equity
NPM = Net Income/Total Sales
                                    WESTBURY STORAGE
              LIQUIDITY RATIOS FOR YEARS 1 –7 UNDER 3 MARKET SCENARIOS

                      Yr 0*      Yr 1       Yr 2        Yr 3       Yr 4    Yr 5    Yr 6    Yr 7

OPTIMISTIC
Current Ratio         2.213      5.320      18.88       31.13      42.69   53.68   64.20   74.31
Quick (Acid Test)


MOST LIKELY
Current Ratio         2.213      2.441      14.81       25.96      36.50   46.52   56.13   65.36
Quick (Acid Test)


PESSIMISTIC
Current Ratio         2.213      (1.879)    3.832       8.949      13.04   16.56   19.59   22.17
Quick (Acid Test)



Current Ratio = Current Assets/Current Liabilities
Quick Ratio = (Current Assets – Inventories)/Current Liabilities
                                   WESTBURY STORAGE
              LEVERAGE RATIOS FOR YEARS 1 –7 UNDER 3 MARKET SCENARIOS

                      Yr 0*     Yr 1       Yr 2       Yr 3      Yr 4    Yr 5    Yr 6    Yr 7
OPTIMISTIC
Debt to Assets Ratio .663       .640       .529       .445      .378    .323    .277    .239
Debt to Equity Ratio 1.971      1.780      1.124      .802      .607    .477    .383    .314
Times Interest Earned (3.00)    1.478      4.883      5.099     5.470   5.847   6.313   6.729

MOST LIKELY
Debt to Assets Ratio .663       .667       .558       .474      .405    .348    .300    .259
Debt to Equity Ratio 1.971      2.005      1.263      .901      .681    .534    .428    .350
Times Interest Earned (3.00)    .701       4.472      4.667     5.007   5.354   5.786   6.168

PESSIMISTIC
Debt to Assets Ratio .663       .712       .655       .601      .557    .516    .478    .444
Debt to Equity Ratio 1.971      2.476      1.894      1.507     1.255   1.067   .917    .798
Times Interest Earned (3.00)    (.465)     2.416      2.502     2.404   2.412   2.470   2.462

Debt to Assets Ratio = Total Liabilities / Total Assets
Debt to Equity Ratio = Total Liabilities / Total Equity
Times Interest Earned Ratio = Operating Income / Interest Expense
                                    WESTBURY STORAGE
               ACTIVITY RATIOS FOR YEARS 1 –7 UNDER 3 MARKET SCENARIOS

                      Yr 0*      Yr 1       Yr 2       Yr 3       Yr 4          Yr 5   Yr 6   Yr 7
OPTIMISTIC
Working Cap Turn      -----
Working Capital %     -----      .250       .644       1.12       1.57          2.01   2.44   2.86
Asset Turnover        -----      .243       .353       .314       .289          .264   .244   .227

MOST LIKELY
Working Cap Turn      -----
Working Capital %     -----      .100       .523       .978       1.41          1.83   2.24   2.64
Asset Turnover        -----      .211       .354       .318       .292          .270   .251   .235

PESSIMISTIC
Working Cap Turn      -----
Working Capital %     -----      (-.286)    .146       .423       .680          .913   1.13   1.33
Asset Turnover        -----      (.158)     .306       .297       .270          .275   .268   .262

Accounts Receivable Turnover = Credit Sales/Accounts Receivable
Average Collection Period = (Accounts Receivable x 365)/Total Sales
Inventory Turnover = COGS/Finished Goods Inventory
Working Capital Turnover = Net Sales/(Current Assets – Current Liabilities)
Working Capital Percentage = (Current Assets – Current Liabilities)/Net Sales
Asset Turnover = Net Sales/Total Assets

								
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