phuket corp fin solution

5/28/2018 phuket corp fin solution

1/31

KARAOKE PUB CAPITAL INVESTMENT ANALYSIS

Beach Karaoke Pub Pro Forma (Self Operate)

Pro Forma Cash Flow

Capital Expenses Low High Capital Investment

Capital Expenditure 800,000 1,200,000 Capital Expenditure

FF&E 900,000 900,000 DepreciationTotal Capital Expenditure 1,700,000 2,100,000 Salvage (after tax 30%)

Capital Expenditure

Sales Pro Forma Income Statement

Total Covers 64 per day Total Revenues less Erosion

Walk-Ins 50% 32 per day

Hotel Guests 50% 32 per day Pub Revenues

Covers/Year

Avg Check $200 each Avg Check

Avg Check Growth Rate 5% per year Avg Check GrowthDays/Years 365

Rooms Revenue Erosion

Total Sales $4,672,000 Year 1 Projected Rooms Revenue

Erosion Rate

Total Tables 32

Table Turns 2 Total Costs

F&B Costs

Hours of Operation 7 hours Salaries

Other Operating

Costs Repairs & Maintenance

F&B Costs 25% Sales

Salaries (1) 0% Sales Depreciation

Other Operating (2) 22% Sales

Repairs & Maintenance 10,000 Year EBIT

Depreciation FF&E 6

- Straight Line Less: Tax

- Salvage $0.00

Depreciation Capex 6 Net Income

Notes Operating Cash Flow (OCF)

OCF

Net Working Capital (NWC)

Change in NWC

Project Cash Flows

OCF

Capital Expenditure

Change in NWC

(1) Assumes 0% of Sales instead of 16% of Sales because

employees are already under a longterm employment

contract with the hotel and, therefore an irrelevant cost for

this scenario.

(2) Assumes Other Operating includes the $55K of allocated

Shared Facility costs assumed in the Planet Karaoke Pub

scenario.


2/31

CFFA

Investment Metrics & Decision Cr

Discount Rate

ROI (Average)

NPV

IRREAV

Profitability Index

Payback

Discounted Payback


3/31

Year 0 1 2 3 4

$1,700,000

283,333 283,333 283,333 283,333

$1,700,000 $0 $0 $0 $0

$3,352,000 $3,559,200 $3,737,180 $3,924,024

$4,672,000 $4,905,600 $5,150,880 $5,408,424

23,360 23,360 23,360 23,360

$200 $210 $221 $232

5% 5% 5%

$(1,320,000) $(1,346,400) $(1,413,700) $(1,484,400)

13,200,000 13,464,000 14,137,000 14,844,000

10% 10% 10% 10%

$2,205,840 $2,315,632 $2,430,914 $2,551,959

0.25 1,168,000 1,226,400 1,287,720 1,352,106

0 - - - -

0.22 1,027,840 1,079,232 1,133,194 1,189,853

10000 10,000 10,000 10,000 10,000

283,333 283,333 283,333 283,333

$862,827 $960,235 $1,022,933 $1,088,731

30% 258,848 288,070 306,880 326,619

$603,979 $672,164 $716,053 $762,112

$887,312 $955,498 $999,386 $1,045,445

$0

$0 $887,312 $955,498 $999,386 $1,045,445

1,700,000 - - - -

- - - - -


4/31

$(1,700,000) $887,312 $955,498 $999,386 $1,045,445

iteria

10.75%

61.0% 52.2% 56.2% 58.8% 61.5%

$2,641,320

52.5%$619,856

2.55

1.850539028

2.153794196 PV Fut CFFA $801,185 $779,008 $735,703 $694,907


5/31

NI%

5 6 18.0% 3.5 3.0 2.5 2.0

38 29.5% 28.0% 25.7% 22.0%

36 29.0% 27.4% 24.9% 20.8%

283,333 283,333 34 28.4% 26.7% 24.0% 19.5%- 32 27.8% 25.9% 22.9% 18.0%

$0 $0 30 27.0% 24.9% 21.7% 16.2%

28 26.1% 23.8% 20.2% 14.0%

26 25.1% 22.5% 18.4% 11.3%

$4,164,845 $4,418,487 24 23.8% 20.8% 16.2% 7.8%

$5,678,845 $5,962,787

23,360 23,360

$243 $255 $619.9 $1,700 $1,800 $1,900 $2,000

5% 5% 5.75% $683.9 $663.8 $643.6 $623.46.75% $671.4 $650.6 $629.7 $608.9

$(1,514,000) $(1,544,300) 7.75% $658.7 $637.2 $615.7 $594.3

15,140,000 15,443,000 8.75% $645.9 $623.7 $601.6 $579.5

10% 10% 9.75% $632.9 $610.1 $587.3 $564.5

10.75% $619.9 $596.4 $572.9 $549.5

$2,679,057 $2,812,510 11.75% $606.7 $582.5 $558.4 $534.2

1,419,711 1,490,697 12.75% $593.4 $568.6 $543.7 $518.9

- -

1,249,346 1,311,813

10,000 10,000

2.55 $1,700 $1,800 $1,900 $2,000

283,333 283,333 5.75% 2.99 2.83 2.68 2.54

6.75% 2.90 2.74 2.59 2.46

$1,202,455 $1,322,644 7.75% 2.80 2.65 2.51 2.38

8.75% 2.72 2.57 2.43 2.31

360,736 396,793 9.75% 2.63 2.49 2.36 2.24

10.75% 2.55 2.41 2.28 2.17

$841,718 $925,851 11.75% 2.48 2.34 2.22 2.11

12.75% 2.41 2.27 2.15 2.04

$1,125,052 $1,209,184

$619.9 0.0% 5.0% 10.0% 15.0%

$0 5.75% $1,684.4 $1,184.2 $683.9 $183.7

6.75% $1,670.9 $1,171.1 $671.4 $171.6

7.75% $1,657.3 $1,158.0 $658.7 $159.4

$1,125,052 $1,209,184 8.75% $1,643.6 $1,144.7 $645.9 $147.0

- - 9.75% $1,629.7 $1,131.3 $632.9 $134.5

- - 10.75% $1,615.8 $1,117.8 $619.9 $121.9

Profit Index Capital Expenditure ($00

DiscountRate

EAV ($000) Erosion Rate of Guest Rooms R

Table Turns

No.ofTable

s

EAV ($000) Capital Expenditure ($00

DiscountRate


6/31

$1,125,052 $1,209,184 11.75% $1,601.7 $1,104.2 $606.7 $109.2

12.75% $1,587.6 $1,090.5 $593.4 $96.3

30.0% $1,329.9 $839.4 $349.0 -$141.4

45.0% $1,090.8 $605.0 $119.2 -$366.6

66.2% 71.1% 60.0% $843.5 $361.3 -$120.8 -$602.9

75.0% $591.3 $112.1 -$367.1 -$846.3

90.0% $336.5 -$140.4 -$617.2 -$1,094.1105.0% $80.1 -$394.8 -$869.8 -$1,344.8

120.0% -$177.0 -$650.4 -$1,123.8 -$1,597.3

135.0% -$434.4 -$906.6 -$1,378.8 -$1,850.9

$675,233 $655,285

DiscountRat


7/31

1.0 1.0 1 Change of Top

-6.9% -6.9% 2 Change of Left

-11.8% -11.8%

-17.9% -17.9%-25.9% -25.9%

-36.4% -36.4%

-51.2% -51.2%

-73.6% -73.6%

-111.0% -111.0%

$2,100 $2,200 $100 Change of Top

$603.2 $583.1 1.0% Change of Left$588.1 $567.3 $1,700 Input for CapEx

$572.8 $551.3

$557.4 $535.2

$541.7 $519.0

$526.0 $502.5

$510.1 $485.9

$494.0 $469.2

$2,100 $2,200

2.42 2.31

2.35 2.24

2.27 2.17

2.20 2.10

2.13 2.03

2.07 1.97

2.01 1.91

1.95 1.86

20.0% 25.0% 5.0% Change of Top

-$316.5 -$816.7 1.0% Change of Left

-$328.2 -$827.9 15.0% Change of Left

-$339.9 -$839.2

-$351.8 -$850.7 $500,230 Change in EAV with 5% Erosion change

-$363.9 -$862.3 $13,836 Change in EAV with 1% Discount Rate Change

-$376.1 -$874.0

)

venue

)


8/31

-$388.4 -$885.9

-$400.8 -$897.9

-$631.8 -$1,122.2

-$852.4 -$1,338.2

-$1,085.0 -$1,567.2

-$1,325.5 -$1,804.7

-$1,571.0 -$2,047.8-$1,819.8 -$2,294.8

-$2,070.7 -$2,544.2

-$2,323.1 -$2,795.3


9/31


Planet Karaoke Pub Pro Forma (Lease)

Capital Expenses Low High

Capital Expenditure 770,000 1,000,000

FF&E - -Total Capital Expenditure 770,000 1,000,000

Lease Proceeds

Base Lease Payment $170,000 per Month

Growth Rate Years 1-2 0%

Growth Rate Years 3-4 5%

Costs

Pro Rata Shared Facilities 55,000 Year

Repairs & Maintenance 10,000 YearDepreciation FF&E 4

- Straight Line

- Salvage $0.00

Depreciation Capex 4


10/31


11/31

Year 0 1 2

Capital Investment

Capital Expenditure $770,000

Depreciation 192,500 192,500Salvage (after tax 30%)

Capital Expenditure $770,000 $0 $0

Pro Forma Income Statement

Total Lease Proceeds less Erosion $720,000 $693,600

Lease Proceeds $2,040,000 $2,040,000

Pmt Annual Growth Rate 0%

Rooms Revenue Erosion $(1,320,000) $(1,346,400)Projected Rooms Revenue 13,200,000 13,464,000

Erosion Rate 10% 10%

Total Costs $65,000 $65,000

Shared Facilities 55000 55,000 55,000

Repairs & Maintenance 10000 10,000 10,000

Depreciation 192,500 192,500

EBIT $462,500 $436,100

Less: Tax 30% 138,750 130,830

Net Income $323,750 $305,270

Operating Cash Flow (OCF)

OCF $516,250 $497,770


Change in NWC $0

Project Cash Flows

OCF $0 $516,250 $497,770

Capital Expenditure 770,000 - -

Change in NWC - - -

CFFA $(770,000) $516,250 $497,770

Investment Metrics & Decision Criteria


12/31

Discount Rate 10.75%

ROI (Average) 67.7% 67.0% 64.6%

NPV $850,233

IRR 55.5%

EAV $272,591

Profitability Index 2.10

Payback 1.491525424Discounted Payback 1.651864407 PV of CFFA $466,140 $405,827


13/31

3 4 5 6 $272.6 $200 $190

7.0% $556.2 $468.2

6.0% $544.6 $457.2

192,500 192,500 5.0% $533.1 $446.24.0% $521.6 $435.4

$0 $0 3.0% $510.2 $424.6

2.0% $498.9 $413.8

1.0% $487.7 $403.2

$728,300 $764,700 0.0% $476.5 $392.5

$2,142,000 $2,249,100

5% 5%

$272.6 $770 $800

$(1,413,700) $(1,484,400) 5.75% $299.2 $290.514,137,000 14,844,000 6.75% $293.9 $285.1

10% 10% 7.75% $288.6 $279.6

8.75% $283.3 $274.1

$65,000 $65,000 9.75% $278.0 $268.6

55,000 55,000 10.75% $272.6 $263.0

10,000 10,000 11.75% $267.2 $257.3

12.75% $261.7 $251.7

192,500 192,500

$470,800 $507,200

2.10 $770 $800

141,240 152,160 5.75% 2.35 2.27

6.75% 2.30 2.21

$329,560 $355,040 7.75% 2.25 2.16

8.75% 2.20 2.12

9.75% 2.15 2.07

$522,060 $547,540 10.75% 2.10 2.03

11.75% 2.06 1.98

12.75% 2.02 1.94

$0

$522,060 $547,540 $272.6 0.0% 5.0%

- - 5.75% $1,270.2 $784.7

- - 6.75% $1,264.5 $779.2

$522,060 $547,540 7.75% $1,258.8 $773.7

8.75% $1,253.0 $768.2

9.75% $1,247.3 $762.6

DiscountRate

Profit Index

DiscountRate

EAV ($000) Erosi

EAV ($000) Bas

LeaseGrowthRate

EAV ($000)


14/31

10.75% $1,241.4 $757.0

67.8% 71.1% 11.75% $1,235.6 $751.4

12.75% $1,229.7 $745.7

50.0% $991.7 $514.0

75.0% $818.1 $343.3

100.0% $638.2 $165.5

125.0% $454.3 -$16.8$384,317 $363,949 150.0% $267.7 -$202.1

175.0% $79.4 -$389.3

200.0% -$110.0 -$578.0

225.0% -$300.2 -$767.5

DiscountRate


15/31

$180 $170 $160 $150 $10 Change of Top

$380.2 $292.2 $204.3 $116.3 1.0% Change of Left

$369.8 $282.4 $195.0 $107.6 $170 Input for Lease Pmt

$359.4 $272.6 $185.8 $98.9$349.1 $262.9 $176.6 $90.4

$338.9 $253.2 $167.5 $81.8

$328.7 $243.6 $158.5 $73.3

$318.6 $234.0 $149.5 $64.9

$308.5 $224.5 $140.5 $56.5

$850 $900 $950 $1,000 $50 Change of Top

$276.2 $261.9 $247.5 $233.2 1.0% Change of Left$270.4 $255.8 $241.1 $226.4 770 Input for CapEx

$264.6 $249.6 $234.6 $219.6

$258.8 $243.4 $228.1 $212.7

$252.9 $237.2 $221.5 $205.8

$246.9 $230.9 $214.9 $198.9

$241.0 $224.6 $208.2 $191.8

$234.9 $218.2 $201.5 $184.8

$850 $900 $950 $1,000

2.13 2.01 1.91 1.81

2.08 1.97 1.86 1.77

2.04 1.92 1.82 1.73

1.99 1.88 1.78 1.69

1.95 1.84 1.74 1.66

1.91 1.80 1.71 1.62

1.87 1.76 1.67 1.59

1.83 1.72 1.63 1.55

10.0% 15.0% 20.0% 25.0% 5.0% Change of Top

$299.2 -$186.4 -$671.9 -$1,157.4 1.0% Change of Left

$293.9 -$191.4 -$676.7 -$1,162.0 25.0% Change of Left

$288.6 -$196.4 -$681.5 -$1,166.6

$283.3 -$201.5 -$686.4 -$1,171.2 $485,530 Change in EAV with 5%

$278.0 -$206.7 -$691.3 -$1,175.9 $5,791 Change in EAV with 1%

Capital Expenditure ($000)

on Rate of Guest Rooms Revenue

Lease Monthly Payment ($000)

Capital Expenditure ($000)


16/31

$272.6 -$211.8 -$696.2 -$1,180.7

$267.2 -$217.0 -$701.2 -$1,185.4

$261.7 -$222.3 -$706.3 -$1,190.3

$36.3 -$441.4 -$919.1 -$1,396.8

-$131.5 -$606.3 -$1,081.2 -$1,556.0

-$307.2 -$779.8 -$1,252.5 -$1,725.2

-$487.8 -$958.9 -$1,429.9 -$1,900.9-$671.8 -$1,141.6 -$1,611.4 -$2,081.2

-$858.1 -$1,326.9 -$1,795.7 -$2,264.4

-$1,045.9 -$1,513.9 -$1,981.9 -$2,449.9

-$1,234.9 -$1,702.2 -$2,169.5 -$2,636.8


17/31

rosion change

iscount Rate Change


18/31

KARAOKE PUB CAPITAL

INVESTMENT ANALYSIS

Pro Forma Summaries

Year 0 1 2

Capital InvestmentCapital Expenditure 1,700,000 - -

Depreciation - 283,333 283,333

Salvage (after tax 30%) - - -

Capital Expenditure 1,700,000 - -

Pro Forma Income Statement

Total Revenues less Erosion 3,352,000 3,559,200

Total Costs 2,205,840 2,315,632

Depreciation 283,333 283,333

EBIT 862,827 960,235

Less: Tax 258,848 288,070

Net Income 603,979 672,164

Operating Cash Flow (OCF)

OCF 887,312 955,498


Change in NWC - - -

Project Cash Flows

OCF - 887,312 955,498

Capital Expenditure 1,700,000 - -

Change in NWC - - -

CFFA (1,700,000) 887,312 955,498

Investment Metrics & Decision Criteria

Discount Rate

ROI (Average)NPV

IRR

EAV

Profitability Index

Payback

Discounted Payback

Beach Karaoke P


19/31

$619.9 $1,700 $1,800

5.8% $683.9 $663.8

6.8% $671.4 $650.6

7.8% $658.7 $637.2

8.8% $645.9 $623.7

9.8% $632.9 $610.110.8% $619.9 $596.4

11.8% $606.7 $582.5

12.8% $593.4 $568.6

Erosion Rate 10%

Disco

untRate

EAV ($000)


20/31

3 4 5 6 Year 0 1

- - - - 770,000 -

283,333 283,333 283,333 283,333 - 192,500

- - - - - -

- - - - 770,000 -

3,737,180 3,924,024 4,164,845 4,418,487 - 720,000

2,430,914 2,551,959 2,679,057 2,812,510 - 65,000

283,333 283,333 283,333 283,333 - 192,500

1,022,933 1,088,731 1,202,455 1,322,644 - 462,500

306,880 326,619 360,736 396,793 - 138,750

716,053 762,112 841,718 925,851 - 323,750

999,386 1,045,445 1,125,052 1,209,184 - 516,250

- - - - - -

999,386 1,045,445 1,125,052 1,209,184 - 516,250

- - - - 770,000 -

- - - - - -

999,386 1,045,445 1,125,052 1,209,184 (770,000) 516,250

Investment Metrics & Decisio

10.75% Discount Rate

61.0% ROI (Average)$2,641,320 NPV

52.5% IRR

$619,856 EAV

2.55 Profitability Index

1.850539028 Payback

2.153794196 Discounted Payback

ub Pro Forma (Self Operate) Pl

BEACH KARAOKE


21/31

$1,900 $2,000 $2,100 $2,200 $272.6 $770

$643.6 $623.4 $603.2 $583.1 5.8% $299.2

$629.7 $608.9 $588.1 $567.3 6.8% $293.9

$615.7 $594.3 $572.8 $551.3 7.8% $288.6

$601.6 $579.5 $557.4 $535.2 8.8% $283.3

$587.3 $564.5 $541.7 $519.0 9.8% $278.0$572.9 $549.5 $526.0 $502.5 10.8% $272.6

$558.4 $534.2 $510.1 $485.9 11.8% $267.2

$543.7 $518.9 $494.0 $469.2 12.8% $261.7

10%

Disco

untRate

Capital Expenditure ($000) EAV ($000)


22/31

2 3 4 5 6 Year 0

- - - - - 930,000

192,500 192,500 192,500 - - -

- - - - - -

- - - - - 930,000

693,600 728,300 764,700 - - -

65,000 65,000 65,000 - - -

192,500 192,500 192,500 - - -

436,100 470,800 507,200 - - -

130,830 141,240 152,160 - - -

305,270 329,560 355,040 - - -

497,770 522,060 547,540 - - -

- - - - - -

497,770 522,060 547,540 - - -

- - - - - 930,000

- - - - - -

497,770 522,060 547,540 - - (930,000)

n Criteria Investment M

10.75% Discount Rate

67.7%$850,233 NPV

55.5% IRR

$272,591 EAV

2.10

1.491525424

1.651864407

anet Karaoke Pub Pro Forma (Lease)

PLANET KARAOKE Bundled


23/31

$800 $850 $900 $950 $1,000 $347.3

$290.5 $276.2 $261.9 $247.5 $233.2 5.75%

$285.1 $270.4 $255.8 $241.1 $226.4 6.75%

$279.6 $264.6 $249.6 $234.6 $219.6 7.75%

$274.1 $258.8 $243.4 $228.1 $212.7 8.75%

$268.6 $252.9 $237.2 $221.5 $205.8 9.75%$263.0 $246.9 $230.9 $214.9 $198.9 10.75%

$257.3 $241.0 $224.6 $208.2 $191.8 11.75%

$251.7 $234.9 $218.2 $201.5 $184.8 12.75%

Disco

untRate

EAV ($000)Capital Expenditure ($000)


24/31

1 2 3 4 5 6

- - - - - -

90,833 90,833 90,833 90,833 283,333 283,333

- - - - - -

- - - - - -

2,632,000 2,865,600 3,008,880 3,159,324 4,164,845 4,418,487

2,140,840 2,250,632 2,365,914 2,486,959 2,679,057 2,812,510

90,833 90,833 90,833 90,833 283,333 283,333

400,327 524,135 552,133 581,531 1,202,455 1,322,644

120,098 157,240 165,640 174,459 360,736 396,793

280,229 366,894 386,493 407,072 841,718 925,851

371,062 457,728 477,326 497,905 1,125,052 1,209,184

- - - - - -

371,062 457,728 477,326 497,905 1,125,052 1,209,184

- - - - - -

- - - - - -

371,062 457,728 477,326 497,905 1,125,052 1,209,184

trics & Decision Criteria

10.75%

$1,791,087

50.8%

$347,265

Bundled/Combined

BUNDLED/COMBINED


25/31

0.0% 5.0% 10.0% 15.0% 20.0% 25.0%

$414.2 $399.5 $384.8 $370.1 $355.4 $340.7

$406.4 $391.9 $377.5 $363.0 $348.5 $334.1

$398.5 $384.3 $370.0 $355.8 $341.6 $327.3

$390.5 $376.5 $362.5 $348.5 $334.5 $320.5

$382.5 $368.7 $354.9 $341.2 $327.4 $313.6$374.3 $360.8 $347.3 $333.7 $320.2 $306.6

$366.1 $352.8 $339.5 $326.2 $312.9 $299.6

$357.9 $344.8 $331.7 $318.6 $305.5 $292.4

10%

Guest Room Revenue Erosion Rate


26/31


27/31


28/31

5.0% Change of Top

1.0% Change of Left

1.0% Change of Left

$13,199 Change in EAV with 5% Erosion change

$5,351 Change in EAV with 1% Discount Rate Change

5.0% Change of Top

1.0% Change of Left

$20,177 Change in EAV with 5% Erosion change

$12,937 Change in EAV with 1% Discount Rate Change


29/31


Equivalent 12YR Investment Term

Year 0 1

First Investment (1,700,000) 887,312Second Investment

Total Cash Flow (1,700,000) 887,312

Capital Account Balance 1,700,000 1,700,000

ROI (Annual) 52.2%

ROI (Average) 42.8%

NPV 4,072,712

IRR 52.5%



Year 0 1

First Investment (770,000) 516,250

Second Investment

Third Investment

Total Cash Flow (770,000) 516,250

Captial Account Balance 770,000 770,000

ROI (Annual) 67.0%

ROI (Average) 37.4%

NPV 1,791,037

IRR 55.5%



Beach Karaoke Pub Pro Forma (Self Operate)

Planet Karaoke Pub Pro Forma (Lease)


30/31

2 3 4 5 6 7

955,498 999,386 1,045,445 1,125,052 1,209,184(1,700,000) 887,312

955,498 999,386 1,045,445 1,125,052 (490,816) 887,312

1,700,000 1,700,000 1,700,000 1,700,000 3,400,000 3,400,000

56.2% 58.8% 61.5% 66.2% 35.6% 26.1%

2 3 4 5 6 7

497,770 522,060 547,540

(770,000) 516,250 497,770 522,060

497,770 522,060 (222,460) 516,250 497,770 522,060

770,000 770,000 1,540,000 1,540,000 1,540,000 1,540,000

64.6% 67.8% 35.6% 33.5% 32.3% 33.9%


31/31

8 9 10 11 12

955,498 999,386 1,045,445 1,125,052 1,209,184

955,498 999,386 1,045,445 1,125,052 1,209,184

3,400,000 3,400,000 3,400,000 3,400,000 3,400,000

28.1% 29.4% 30.7% 33.1% 35.6%

8 9 10 11 12

547,540

(770,000) 516,250 497,770 522,060 547,540

(222,460) 516,250 497,770 522,060 547,540

2,310,000 2,310,000 2,310,000 2,310,000 2,310,000

23.7% 22.3% 21.5% 22.6% 23.7%

phuket corp fin solution

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