the waterfront investor presentation may 2007. the team list ceo and key management by name. include...
DESCRIPTION
Service Description By Keiichiro MoriTRANSCRIPT
![Page 1: The Waterfront Investor Presentation May 2007. The Team List CEO and key management by name. Include previous accomplishments to show that these are people](https://reader035.vdocuments.us/reader035/viewer/2022062906/5a4d1b267f8b9ab0599976e3/html5/thumbnails/1.jpg)
The WaterfrontThe WaterfrontInvestor Presentation
May 2007
![Page 2: The Waterfront Investor Presentation May 2007. The Team List CEO and key management by name. Include previous accomplishments to show that these are people](https://reader035.vdocuments.us/reader035/viewer/2022062906/5a4d1b267f8b9ab0599976e3/html5/thumbnails/2.jpg)
The Team• List CEO and key management by name.• Include previous accomplishments to show that
these are people with a record of success.• Summarize number of years of experience in this
field.• Alisher Khussainov: CFO
– Graduated from the Wharton MBA Program– Prior Experience:
• Fixed income trader with Goldman Sachs• Investment banking analyst
![Page 3: The Waterfront Investor Presentation May 2007. The Team List CEO and key management by name. Include previous accomplishments to show that these are people](https://reader035.vdocuments.us/reader035/viewer/2022062906/5a4d1b267f8b9ab0599976e3/html5/thumbnails/3.jpg)
Service DescriptionBy Keiichiro Mori
![Page 4: The Waterfront Investor Presentation May 2007. The Team List CEO and key management by name. Include previous accomplishments to show that these are people](https://reader035.vdocuments.us/reader035/viewer/2022062906/5a4d1b267f8b9ab0599976e3/html5/thumbnails/4.jpg)
Location: Kirkland Waterfront
![Page 5: The Waterfront Investor Presentation May 2007. The Team List CEO and key management by name. Include previous accomplishments to show that these are people](https://reader035.vdocuments.us/reader035/viewer/2022062906/5a4d1b267f8b9ab0599976e3/html5/thumbnails/5.jpg)
Location• 40 yard stretch of prime waterfront
• 40,000 square feet of courts
• weight rooms
• banquet halls
![Page 6: The Waterfront Investor Presentation May 2007. The Team List CEO and key management by name. Include previous accomplishments to show that these are people](https://reader035.vdocuments.us/reader035/viewer/2022062906/5a4d1b267f8b9ab0599976e3/html5/thumbnails/6.jpg)
Our Services
Professional Personal Trainers
![Page 7: The Waterfront Investor Presentation May 2007. The Team List CEO and key management by name. Include previous accomplishments to show that these are people](https://reader035.vdocuments.us/reader035/viewer/2022062906/5a4d1b267f8b9ab0599976e3/html5/thumbnails/7.jpg)
Our nutritionist can provide personalized plans based on your lifestyle.
We provide work out plans to optimize your health goals
![Page 8: The Waterfront Investor Presentation May 2007. The Team List CEO and key management by name. Include previous accomplishments to show that these are people](https://reader035.vdocuments.us/reader035/viewer/2022062906/5a4d1b267f8b9ab0599976e3/html5/thumbnails/8.jpg)
Dining at Polaris
![Page 9: The Waterfront Investor Presentation May 2007. The Team List CEO and key management by name. Include previous accomplishments to show that these are people](https://reader035.vdocuments.us/reader035/viewer/2022062906/5a4d1b267f8b9ab0599976e3/html5/thumbnails/9.jpg)
![Page 10: The Waterfront Investor Presentation May 2007. The Team List CEO and key management by name. Include previous accomplishments to show that these are people](https://reader035.vdocuments.us/reader035/viewer/2022062906/5a4d1b267f8b9ab0599976e3/html5/thumbnails/10.jpg)
Cooperating with Local Businesses
![Page 11: The Waterfront Investor Presentation May 2007. The Team List CEO and key management by name. Include previous accomplishments to show that these are people](https://reader035.vdocuments.us/reader035/viewer/2022062906/5a4d1b267f8b9ab0599976e3/html5/thumbnails/11.jpg)
Summer Activities
![Page 12: The Waterfront Investor Presentation May 2007. The Team List CEO and key management by name. Include previous accomplishments to show that these are people](https://reader035.vdocuments.us/reader035/viewer/2022062906/5a4d1b267f8b9ab0599976e3/html5/thumbnails/12.jpg)
Special Annual Event
![Page 13: The Waterfront Investor Presentation May 2007. The Team List CEO and key management by name. Include previous accomplishments to show that these are people](https://reader035.vdocuments.us/reader035/viewer/2022062906/5a4d1b267f8b9ab0599976e3/html5/thumbnails/13.jpg)
Financial Plan
![Page 14: The Waterfront Investor Presentation May 2007. The Team List CEO and key management by name. Include previous accomplishments to show that these are people](https://reader035.vdocuments.us/reader035/viewer/2022062906/5a4d1b267f8b9ab0599976e3/html5/thumbnails/14.jpg)
Preview• Our Model• Capital Expenditures• Sales• Expenses and EBIT• Net Cash Flow
![Page 15: The Waterfront Investor Presentation May 2007. The Team List CEO and key management by name. Include previous accomplishments to show that these are people](https://reader035.vdocuments.us/reader035/viewer/2022062906/5a4d1b267f8b9ab0599976e3/html5/thumbnails/15.jpg)
Our Model• Forward looking income statements
– 10 years into the future– Terminal value: year 11 and onward, into
perpetuity• Fairly typical valuation approach
– Determine economic value of the company
![Page 16: The Waterfront Investor Presentation May 2007. The Team List CEO and key management by name. Include previous accomplishments to show that these are people](https://reader035.vdocuments.us/reader035/viewer/2022062906/5a4d1b267f8b9ab0599976e3/html5/thumbnails/16.jpg)
Capital Expenditures• Start up costs:
– $1.75m down payment on building • Price is 17.5m
– 12.74m renovation costs• Remodeling expenses• Include weight lifting equipment, restaurant
equipment Total CAPEX=14.49 million
• Long-lived assets
![Page 17: The Waterfront Investor Presentation May 2007. The Team List CEO and key management by name. Include previous accomplishments to show that these are people](https://reader035.vdocuments.us/reader035/viewer/2022062906/5a4d1b267f8b9ab0599976e3/html5/thumbnails/17.jpg)
Revenues(thousands) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 TV
0 1 2 3 4 5 6 7 8 9 10 TVSales 0 2,820 4,890 7,900 8,780 10,160 11,540 12,920 13,360 14,050 14,740 15,539
• Revenues include– $2500 initiation fees– $200 monthly fees– Proceeds from our services
![Page 18: The Waterfront Investor Presentation May 2007. The Team List CEO and key management by name. Include previous accomplishments to show that these are people](https://reader035.vdocuments.us/reader035/viewer/2022062906/5a4d1b267f8b9ab0599976e3/html5/thumbnails/18.jpg)
Revenue Growth• Membership grows to 600 by year 2• Growth will slow to 70% and start tapering
off• 2100 members by year 10• Year 11 onward, 2130 membersSales Growth
0
5000
10000
15000
20000
1 2 3 4 5 6 7 8 9 10 TV
Period
![Page 19: The Waterfront Investor Presentation May 2007. The Team List CEO and key management by name. Include previous accomplishments to show that these are people](https://reader035.vdocuments.us/reader035/viewer/2022062906/5a4d1b267f8b9ab0599976e3/html5/thumbnails/19.jpg)
(thousands) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 After0 1 2 3 4 5 6 7 8 9 10 TV
Gross Profit 0 2538 4401 7110 7902 9144 10386 11628 12024 12645 13266 13985 Op Exp 0 1128 1956 2765 3073 3556 4039 4522 4676 4918 5159 5438.6 Mortg PMT 0 2496 2496 2496 2496 2496 2496 2496 2496 2496 2496 0 Dep 0 1449 1449 1449 1449 1449 1449 1449 1449 1449 1449 1200EBIT 0 -2,535 -1,500 400 884 1,643 2,402 3,161 3,403 3,783 4,162 7,346Net Cash Flow -14,490 -1,096 -51 1,713 1,932 2,533 3,034 3,535 3,695 3,945 4,246 6,049
EBIT and NCF
•We predict 60% operating margins
•Break even point is 3 years
•NCFs turn positive in year 3
![Page 20: The Waterfront Investor Presentation May 2007. The Team List CEO and key management by name. Include previous accomplishments to show that these are people](https://reader035.vdocuments.us/reader035/viewer/2022062906/5a4d1b267f8b9ab0599976e3/html5/thumbnails/20.jpg)
Net Cash Flow Growth
Sales and Free Cash Flow
-20000-15000-10000
-50000
5000100001500020000
0 1 2 3 4 5 6 7 8 9 10 TV
Timeline
Figures in thousands
SalesCash flows
![Page 21: The Waterfront Investor Presentation May 2007. The Team List CEO and key management by name. Include previous accomplishments to show that these are people](https://reader035.vdocuments.us/reader035/viewer/2022062906/5a4d1b267f8b9ab0599976e3/html5/thumbnails/21.jpg)
Review• Strong sales growth• Tight cost control• Steady cash flows
![Page 22: The Waterfront Investor Presentation May 2007. The Team List CEO and key management by name. Include previous accomplishments to show that these are people](https://reader035.vdocuments.us/reader035/viewer/2022062906/5a4d1b267f8b9ab0599976e3/html5/thumbnails/22.jpg)
Our Offering• Our capital need is 20% of initial capital
expenditures, and 20% investment in years 1 – 2.9m now – 219 thousand in Year 1
• We are offering a 20% equity stake in our company
• An excellent opportunity for a great return
![Page 23: The Waterfront Investor Presentation May 2007. The Team List CEO and key management by name. Include previous accomplishments to show that these are people](https://reader035.vdocuments.us/reader035/viewer/2022062906/5a4d1b267f8b9ab0599976e3/html5/thumbnails/23.jpg)
Dividends• Main source of return
– Dividends will start as soon as NCF becomes positive • Private shares
– May be room for capital gains
Will put in dividends table
![Page 24: The Waterfront Investor Presentation May 2007. The Team List CEO and key management by name. Include previous accomplishments to show that these are people](https://reader035.vdocuments.us/reader035/viewer/2022062906/5a4d1b267f8b9ab0599976e3/html5/thumbnails/24.jpg)
Risk-Return Profile• What should you be earning?
– Risk adjusted 16.5%• What you will be earning
– 19% annualized– Outsized returns– Higher return with the same level of
risk
![Page 25: The Waterfront Investor Presentation May 2007. The Team List CEO and key management by name. Include previous accomplishments to show that these are people](https://reader035.vdocuments.us/reader035/viewer/2022062906/5a4d1b267f8b9ab0599976e3/html5/thumbnails/25.jpg)
Benefits• Board of Directors Seats • Complimentary memberships for you and your
families