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