Valley Airporter

Start your own business plan »

Airport Shuttle Business Plan

Financial Plan

The following is the Financial Plan for Valley Airporter.

7.1 Break-even Analysis

The following table and chart show the break-even analysis for Valley Airporter.

Break-even Analysis
Monthly Revenue Break-even $41,161
Assumptions:
Average Percent Variable Cost 12%
Estimated Monthly Fixed Cost $36,147

7.2 Projected Profit and Loss

The following table and charts are the projected profit and loss for three years.

Pro Forma Profit and Loss
2002 2003 2004
Sales $550,000 $595,000 $650,000
Direct Cost of Sales $67,000 $73,000 $78,000
Other Production Expenses $0 $0 $0
Total Cost of Sales $67,000 $73,000 $78,000
Gross Margin $483,000 $522,000 $572,000
Gross Margin % 87.82% 87.73% 88.00%
Expenses
Payroll $288,000 $302,000 $318,000
Sales and Marketing and Other Expenses $24,000 $27,000 $30,000
Depreciation $18,564 $18,564 $18,564
Leased Equipment $0 $0 $0
Utilities $0 $0 $0
Insurance $12,000 $12,000 $12,000
Rent $48,000 $48,000 $48,000
Payroll Taxes $43,200 $45,300 $47,700
Other $0 $0 $0
Total Operating Expenses $433,764 $452,864 $474,264
Profit Before Interest and Taxes $49,236 $69,136 $97,736
EBITDA $67,800 $87,700 $116,300
Interest Expense $7,090 $6,680 $7,400
Taxes Incurred $12,644 $18,737 $27,101
Net Profit $29,502 $43,719 $63,235
Net Profit/Sales 5.36% 7.35% 9.73%

7.3 Projected Cash Flow

The following table and chart is the projected cash flow for three years.

Pro Forma Cash Flow
2002 2003 2004
Cash Received
Cash from Operations
Cash Sales $550,000 $595,000 $650,000
Subtotal Cash from Operations $550,000 $595,000 $650,000
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $24,000 $24,000 $24,000
New Long-term Liabilities $0 $24,000 $24,000
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $574,000 $643,000 $698,000
Expenditures 2002 2003 2004
Expenditures from Operations
Cash Spending $288,000 $302,000 $318,000
Bill Payments $211,253 $230,434 $248,599
Subtotal Spent on Operations $499,253 $532,434 $566,599
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $16,800 $16,800 $16,800
Purchase Other Current Assets $24,000 $24,000 $24,000
Purchase Long-term Assets $24,000 $24,000 $24,000
Dividends $0 $0 $0
Subtotal Cash Spent $564,053 $597,234 $631,399
Net Cash Flow $9,947 $45,766 $66,601
Cash Balance $59,947 $105,712 $172,313

7.4 Projected Balance Sheet

The following table is the projected balance sheet for three years.

Pro Forma Balance Sheet
2002 2003 2004
Assets
Current Assets
Cash $59,947 $105,712 $172,313
Other Current Assets $24,000 $48,000 $72,000
Total Current Assets $83,947 $153,712 $244,313
Long-term Assets
Long-term Assets $154,000 $178,000 $202,000
Accumulated Depreciation $42,564 $61,128 $79,692
Total Long-term Assets $111,436 $116,872 $122,308
Total Assets $195,383 $270,584 $366,621
Liabilities and Capital 2002 2003 2004
Current Liabilities
Accounts Payable $18,680 $18,963 $20,564
Current Borrowing $0 $0 $0
Other Current Liabilities $24,000 $48,000 $72,000
Subtotal Current Liabilities $42,680 $66,963 $92,564
Long-term Liabilities $63,200 $70,400 $77,600
Total Liabilities $105,880 $137,363 $170,164
Paid-in Capital $0 $0 $0
Retained Earnings $60,000 $89,502 $133,221
Earnings $29,502 $43,719 $63,235
Total Capital $89,502 $133,221 $196,457
Total Liabilities and Capital $195,383 $270,584 $366,621
Net Worth $89,502 $133,221 $196,457

7.5 Business Ratios

Business ratios for the years of this plan are shown below.  Industry profile ratios based on the Standard Industrial Classification (SIC) code 4119, Local Passenger Transportation, are shown for comparison.

Ratio Analysis
2002 2003 2004 Industry Profile
Sales Growth 89.66% 8.18% 9.24% 3.70%
Percent of Total Assets
Other Current Assets 12.28% 17.74% 19.64% 47.00%
Total Current Assets 42.97% 56.81% 66.64% 64.90%
Long-term Assets 57.03% 43.19% 33.36% 35.10%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 21.84% 24.75% 25.25% 30.00%
Long-term Liabilities 32.35% 26.02% 21.17% 26.20%
Total Liabilities 54.19% 50.77% 46.41% 56.20%
Net Worth 45.81% 49.23% 53.59% 43.80%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 87.82% 87.73% 88.00% 78.20%
Selling, General & Administrative Expenses 82.45% 80.38% 78.27% 55.40%
Advertising Expenses 1.09% 1.34% 1.54% 0.70%
Profit Before Interest and Taxes 8.95% 11.62% 15.04% 2.10%
Main Ratios
Current 1.97 2.30 2.64 1.96
Quick 1.97 2.30 2.64 1.51
Total Debt to Total Assets 54.19% 50.77% 46.41% 56.20%
Pre-tax Return on Net Worth 47.09% 46.88% 45.98% 3.50%
Pre-tax Return on Assets 21.57% 23.08% 24.64% 8.10%
Additional Ratios 2002 2003 2004
Net Profit Margin 5.36% 7.35% 9.73% n.a
Return on Equity 32.96% 32.82% 32.19% n.a
Activity Ratios
Accounts Payable Turnover 11.45 12.17 12.17 n.a
Payment Days 29 30 29 n.a
Total Asset Turnover 2.81 2.20 1.77 n.a
Debt Ratios
Debt to Net Worth 1.18 1.03 0.87 n.a
Current Liab. to Liab. 0.40 0.49 0.54 n.a
Liquidity Ratios
Net Working Capital $41,266 $86,749 $151,749 n.a
Interest Coverage 6.94 10.35 13.21 n.a
Additional Ratios
Assets to Sales 0.36 0.45 0.56 n.a
Current Debt/Total Assets 22% 25% 25% n.a
Acid Test 1.97 2.30 2.64 n.a
Sales/Net Worth 6.15 4.47 3.31 n.a
Dividend Payout 0.00 0.00 0.00 n.a