Airport Shuttle Business Plan

Valley Airporter

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.

Airport shuttle business plan, financial plan chart image

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