Resort Hotel Ski Lodge Business Plan

Silver Bear Lodge

Financial Plan

The following is the financial plan for the Silver Bear Lodge.

7.1 Break-even Analysis

The monthly break-even point is approximately $52,900.

Resort hotel ski lodge business plan, financial plan chart image

Break-even Analysis


Monthly Revenue Break-even	$52,905

Assumptions:
Average Percent Variable Cost	11%
Estimated Monthly Fixed Cost	$46,965

7.2 Projected Profit and Loss

The following is the projected profit and loss for three years.

Pro Forma Profit and Loss
	Year 1	Year 2	Year 3
Sales	$741,000	$915,000	$1,022,000
Direct Cost of Sales	$83,200	$101,000	$128,000
Other Production Expenses	$0	$0	$0
Total Cost of Sales	$83,200	$101,000	$128,000

Gross Margin	$657,800	$814,000	$894,000
Gross Margin %	88.77%	88.96%	87.48%


Expenses
Payroll	$382,000	$414,000	$438,000
Sales and Marketing and Other Expenses	$60,000	$80,000	$100,000
Depreciation	$14,280	$14,280	$14,280
Leased Equipment	$0	$0	$0
Utilities	$26,000	$26,000	$26,000
Insurance	$24,000	$24,000	$24,000
Lease	$0	$0	$0
Payroll Taxes	$57,300	$62,100	$65,700
Other	$0	$0	$0

Total Operating Expenses	$563,580	$620,380	$667,980

Profit Before Interest and Taxes	$94,220	$193,620	$226,020
EBITDA	$108,500	$207,900	$240,300
Interest Expense	$33,375	$30,500	$27,500
Taxes Incurred	$18,254	$48,936	$59,556

Net Profit	$42,592	$114,184	$138,964
Net Profit/Sales	5.75%	12.48%	13.60%

7.3 Projected Balance Sheet

The following is the projected balance sheet for three years.

Pro Forma Balance Sheet
	Year 1	Year 2	Year 3
Assets

Current Assets
Cash	$31,437	$118,555	$165,584
Other Current Assets	$14,000	$32,000	$53,000
Total Current Assets	$45,437	$150,555	$218,584

Long-term Assets
Long-term Assets	$350,000	$370,000	$430,000
Accumulated Depreciation	$14,280	$28,560	$42,840
Total Long-term Assets	$335,720	$341,440	$387,160
Total Assets	$381,157	$491,995	$605,744

Liabilities and Capital	Year 1	Year 2	Year 3

Current Liabilities
Accounts Payable	$3,965	$30,619	$35,405
Current Borrowing	$0	$0	$0
Other Current Liabilities	$0	$0	$0
Subtotal Current Liabilities	$3,965	$30,619	$35,405

Long-term Liabilities	$320,000	$290,000	$260,000
Total Liabilities	$323,965	$320,619	$295,405

Paid-in Capital	$200,000	$200,000	$200,000
Retained Earnings	($185,400)	($142,809)	($28,625)
Earnings	$42,592	$114,184	$138,964
Total Capital	$57,192	$171,376	$310,340
Total Liabilities and Capital	$381,157	$491,995	$605,744

Net Worth	$57,192	$171,376	$310,340

7.4 Projected Cash Flow

The following is the projected cash flow for three years.

Pro Forma Cash Flow
	Year 1	Year 2	Year 3
Cash Received

Cash from Operations
Cash Sales	$741,000	$915,000	$1,022,000
Subtotal Cash from Operations	$741,000	$915,000	$1,022,000

Additional Cash Received
Sales Tax, VAT, HST/GST Received	$0	$0	$0
New Current Borrowing	$0	$0	$0
New Other Liabilities (interest-free)	$0	$0	$0
New Long-term Liabilities	$0	$0	$0
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	$741,000	$915,000	$1,022,000

Expenditures	Year 1	Year 2	Year 3

Expenditures from Operations
Cash Spending	$382,000	$414,000	$438,000
Bill Payments	$298,163	$345,882	$425,971
Subtotal Spent on Operations	$680,163	$759,882	$863,971

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	$30,000	$30,000	$30,000
Purchase Other Current Assets	$14,000	$18,000	$21,000
Purchase Long-term Assets	$0	$20,000	$60,000
Dividends	$0	$0	$0
Subtotal Cash Spent	$724,163	$827,882	$974,971

Net Cash Flow	$16,837	$87,118	$47,029
Cash Balance	$31,437	$118,555	$165,584

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 7011, Hotels and Motels, are shown for comparison.

Ratio Analysis
	Year 1	Year 2	Year 3	Industry Profile
Sales Growth	0.00%	23.48%	11.69%	5.90%

Percent of Total Assets
Other Current Assets	3.67%	6.50%	8.75%	26.00%
Total Current Assets	11.92%	30.60%	36.09%	32.00%
Long-term Assets	88.08%	69.40%	63.91%	68.00%
Total Assets	100.00%	100.00%	100.00%	100.00%

Current Liabilities	1.04%	6.22%	5.84%	19.40%
Long-term Liabilities	83.95%	58.94%	42.92%	34.60%
Total Liabilities	85.00%	65.17%	48.77%	54.00%
Net Worth	15.00%	34.83%	51.23%	46.00%

Percent of Sales
Sales	100.00%	100.00%	100.00%	100.00%
Gross Margin	88.77%	88.96%	87.48%	0.00%
Selling, General & Administrative Expenses	83.02%	76.48%	73.88%	75.10%
Advertising Expenses	8.10%	8.74%	9.78%	1.90%
Profit Before Interest and Taxes	12.72%	21.16%	22.12%	2.50%

Main Ratios
Current	11.46	4.92	6.17	1.45
Quick	11.46	4.92	6.17	1.05
Total Debt to Total Assets	85.00%	65.17%	48.77%	54.00%
Pre-tax Return on Net Worth	106.39%	95.18%	63.97%	1.70%
Pre-tax Return on Assets	15.96%	33.15%	32.77%	3.70%

Additional Ratios	Year 1	Year 2	Year 3
Net Profit Margin	5.75%	12.48%	13.60%	n.a
Return on Equity	74.47%	66.63%	44.78%	n.a

Activity Ratios
Accounts Payable Turnover	76.19	12.17	12.17	n.a
Payment Days	27	17	28	n.a
Total Asset Turnover	1.94	1.86	1.69	n.a

Debt Ratios
Debt to Net Worth	5.66	1.87	0.95	n.a
Current Liab. to Liab.	0.01	0.10	0.12	n.a

Liquidity Ratios
Net Working Capital	$41,472	$119,936	$183,180	n.a
Interest Coverage	2.82	6.35	8.22	n.a

Additional Ratios
Assets to Sales	0.51	0.54	0.59	n.a
Current Debt/Total Assets	1%	6%	6%	n.a
Acid Test	11.46	4.92	6.17	n.a
Sales/Net Worth	12.96	5.34	3.29	n.a
Dividend Payout	0.00	0.00	0.00	n.a