financials assisted living facilities jay o’balles christian que fariha shah osman harac

FinancialsFinancialsAssisted Living Assisted Living

FacilitiesFacilities

Jay O’BallesJay O’BallesChristian QueChristian QueFariha ShahFariha Shah

Osman HaracOsman Harac

Income StatementsIncome Statements

Sales and MarketingSales and Marketing 0.05% of Sales0.05% of Sales

Gen. and Admin.Gen. and Admin. In line with industry standardsIn line with industry standards Office ManagerOffice Manager

OthersOthers InsuranceInsurance

Income StatementsIncome Statements

Sales and MarketingSales and Marketing 0.05% of Sales0.05% of Sales

Gen. and Admin.Gen. and Admin. In line with industry standardsIn line with industry standards Office ManagerOffice Manager

OthersOthers InsuranceInsurance

Income StatementsIncome Statements Cost of SalesCost of Sales

Magazines SubscriptionsMagazines Subscriptions Newspaper SubscriptionsNewspaper Subscriptions Registered Nurse (2)Registered Nurse (2) Licensed Vocational Nurse (2)Licensed Vocational Nurse (2) Chef (1) and Assistants (2)Chef (1) and Assistants (2) Van DriverVan Driver Physical Therapist (1, Physical Therapist (1,

outsourced)outsourced) Housekeeping Staff (10)Housekeeping Staff (10) Food and Drinks for Daily MealsFood and Drinks for Daily Meals

$72,000 per month

Revenue GrowthRevenue Growth

$190/resident/day$190/resident/day ““Security Fee” paid by each Security Fee” paid by each

incoming Residentincoming Resident $141,000$141,000

Anticipated growth by 6 residents Anticipated growth by 6 residents per month, starting at Month 3per month, starting at Month 3

No seasonalityNo seasonality

Projected Balance Projected Balance StatementStatement

Solely debt-funded enterpriseSolely debt-funded enterprise $180,000 loan$180,000 loan 95% used within the first two 95% used within the first two

monthsmonths Security Fee alleviates cash flow in Security Fee alleviates cash flow in

Month 3Month 3 Amortized and paid off within 5 Amortized and paid off within 5

years at 3% interestyears at 3% interest

Monthly Cash FlowMonthly Cash Flow $180,000 loan used within 2 months$180,000 loan used within 2 months ““Security Fee” brings up cash level to Security Fee” brings up cash level to

$2 million within 3 months$2 million within 3 months

Key RatiosKey Ratios

Key RatiosKey Ratios

Key RatiosKey Ratios

Risks and MitigationRisks and Mitigation

From Emeritus From Emeritus (ESC)(ESC) 10-K 10-K Growth of Industry/Not enough Growth of Industry/Not enough

facilitiesfacilities Slow growth in industry due to Slow growth in industry due to

investment (buy vs lease)investment (buy vs lease) SolutionsSolutions

Grow with competitionGrow with competition Lease (ALF/SNF/Nursing Homes are Lease (ALF/SNF/Nursing Homes are

in the in the real estate business)in the in the real estate business)

Risks and MitigationRisks and Mitigation

From Sunrise From Sunrise ((SRZ)SRZ)10-K10-K LiquidityLiquidity Exchange Rate Exchange Rate

ProblemsProblems SolutionsSolutions

N/A to our N/A to our modelmodel

From Brookdale From Brookdale ((BKD)BKD)10-K10-K Mortgage Mortgage

DefaultsDefaults Customers Customers

having having problems problems selling/renting selling/renting homeshomes

SolutionsSolutions Everyone’s a Everyone’s a

renterrenter

ConclusionConclusion

Saved money by leasing instead of Saved money by leasing instead of committing to a mortgagecommitting to a mortgage

Cycling expansion and entry when Cycling expansion and entry when capital expenses are lowcapital expenses are low

Careful attention to monthly cash Careful attention to monthly cash flow flow