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MASTER FINANCIAL PROJECTIONS - SAMPLE - DEWITT

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Dee Dewitt ! 1997-2015, Veridian Financial, Inc. dba Summit Venture Strategies ALL RIGHTS RESERVED Facility Company SAMPLE COMPANY Financial Projections Assisted Living
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Dee Dewitt! 1997-2015, Veridian Financial, Inc. dba Summit Venture Strategies

ALL RIGHTS RESERVED

Facility Company

SAMPLE COMPANY Financial Projections

Assisted Living

Company

Projected Income Statement, Balance Sheet & Cash Flow

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Gross Revenues

Beds at Rate 1 $3,822,140 $5,878,340 $10,495,680 $12,856,320 $15,552,000 $21,672,000 $28,903,680 $34,894,080 $42,456,960 $48,677,760Beds at Rate 2 $997,080 $1,651,440 $2,926,680 $5,178,240 $6,220,800 $8,668,800 $11,487,360 $13,868,160 $16,773,120 $19,230,720Beds at Rate 3 $1,139,520 $2,516,480 $4,440,480 $5,892,480 $7,050,240 $9,824,640 $12,969,600 $15,657,600 $18,869,760 $21,634,560

Total Revenues $5,958,740 $10,046,260 $17,862,840 $23,927,040 $28,823,040 $40,165,440 $53,360,640 $64,419,840 $78,099,840 $89,543,040

Cost of Goods Sold (COGS) $3,325,215 $5,606,215 $9,968,179 $13,352,245 $16,084,409 $22,413,922 $29,777,372 $35,948,848 $43,582,835 $49,968,598Gross Profit $2,633,525 $4,440,045 $7,894,661 $10,574,795 $12,738,631 $17,751,518 $23,583,268 $28,470,992 $34,517,005 $39,574,442

Other Operating Costs

Corporate G&A Expenses $668,764 $1,144,000 $1,395,370 $1,877,697 $2,167,096 $2,469,322 $2,785,601 $3,117,280 $3,465,838 $3,782,898Net Operating Income $1,964,761 $3,296,045 $6,499,291 $8,697,098 $10,571,535 $15,282,196 $20,797,668 $25,353,713 $31,051,167 $35,791,544

% Operating Margin 33% 33% 36% 36% 37% 38% 39% 39% 40% 40%

Mortgage/Bond Interest $1,785,321 $3,575,000 $3,575,000 $5,135,900 $5,135,900 $6,696,800 $6,696,800 $8,257,700 $8,257,700 $9,818,600Depreciation & Amortization $1,837,064 $3,162,091 $4,673,315 $4,857,428 $5,292,622 $4,888,393 $5,549,683 $5,319,890 $5,757,693 $5,779,917Interest Income $2,544,159 $1,898,463 $1,567,019 $1,089,538 $612,058 $612,058 $612,058 $612,058 $612,058 $612,058Mgmt Developer Fees $950,000 $1,000,000 $0 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000

Earnings Before Taxes $1,836,535 ($542,583) ($182,006) $793,308 $1,755,071 $5,309,061 $10,163,243 $13,388,181 $18,647,832 $21,805,084Cumulative Income Tax Shield $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Income Tax Expense (0%) - LLC $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Net Income (Loss) $1,836,535 ($542,583) ($182,006) $793,308 $1,755,071 $5,309,061 $10,163,243 $13,388,181 $18,647,832 $21,805,084Percent Net Margin 31% -5% -1% 3% 6% 13% 19% 21% 24% 24%

10-Yr. Income Statement Projections

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Current Assets Cash $49,339,045 $31,471,870 $22,119,019 $38,666,155 $23,334,073 $42,942,457 $33,721,446 $48,963,435 $53,076,523 $13,951,983 Accounts Receivable, net $163,253 $275,240 $489,393 $655,535 $789,672 $1,100,423 $1,461,935 $1,764,927 $2,139,722 $2,453,234 Other Current Assets $148,969 $251,157 $446,571 $598,176 $720,576 $1,004,136 $1,334,016 $1,610,496 $1,952,496 $2,238,576 Inventory $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Current Assets $49,651,267 $31,998,266 $23,054,983 $39,919,867 $24,844,321 $45,047,016 $36,517,397 $52,338,858 $57,168,741 $18,643,793

Property & Equipment $9,092,991 $28,960,544 $42,602,842 $52,017,054 $72,509,890 $80,399,627 $98,820,708 $115,408,526 $124,822,738 $145,315,574Less Cummulative Depreciation ($1,837,064) ($4,999,156) ($9,672,471) ($14,529,899) ($19,822,521) ($24,710,914) ($30,260,596) ($35,580,486) ($41,338,179) ($47,118,097)Net Fixed Assets $7,255,927 $23,961,388 $32,930,371 $37,487,155 $52,687,369 $55,688,713 $68,560,112 $79,828,040 $83,484,559 $98,197,477

Other Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Total Assets $56,907,194 $55,959,655 $55,985,354 $77,407,022 $77,531,691 $100,735,729 $105,077,509 $132,166,898 $140,653,300 $116,841,270

Current Liabilities Borrowings, current portion $300,000 $0 $0 $1,040,600 $1,040,600 $2,081,200 $2,081,200 $3,121,800 $3,121,800 $4,162,400 Accounts Payable $109,424 $184,937 $311,330 $417,259 $500,041 $681,733 $892,136 $1,070,305 $1,289,005 $1,472,644 Other Current Liabilities $27,483 $47,014 $57,344 $77,166 $89,059 $101,479 $114,477 $128,107 $142,432 $155,462

Total Current Liabilities $436,908 $231,951 $368,674 $1,535,024 $1,629,700 $2,864,412 $3,087,813 $4,320,212 $4,553,236 $5,790,505

Long Term Borrowings - Shareholder $200,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 Long Term Borrowings - Bond $55,000,000 $55,000,000 $55,000,000 $55,000,000 $55,000,000 $55,000,000 $55,000,000 $55,000,000 $55,000,000 $0 Long Term Borrowings - Refinancing $0 $0 $0 $19,771,400 $18,730,800 $37,461,600 $35,380,400 $53,070,600 $49,948,800 $66,598,400

Total Long Term Liabilities $55,200,000 $55,000,000 $55,000,000 $74,771,400 $73,730,800 $92,461,600 $90,380,400 $108,070,600 $104,948,800 $66,598,400

Owners' Equity Paid In Capital - Investors $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Paid In Capital - Founders $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000

Accumulated Retained Earnings $1,836,535 $577,703 $395,697 $1,259,988 $2,705,668 $7,330,251 $15,422,960 $24,847,476 $38,273,918 $52,806,347 Distribution to Shareholders ($716,249) $0 $70,982 ($309,390) ($684,478) ($2,070,534) ($3,963,665) ($5,221,390) ($7,272,654) ($8,503,983)Total Owners' Equity $1,270,286 $727,703 $616,680 $1,100,598 $2,171,191 $5,409,718 $11,609,296 $19,776,086 $31,151,263 $44,452,364

Total Liabilities & Owners' Equity $56,907,194 $55,959,655 $55,985,354 $77,407,022 $77,531,691 $100,735,729 $105,077,509 $132,166,898 $140,653,300 $116,841,270$0 $0 $0 $0 $0 $0 $0 $0 $0 $0

10-Yr. Balance Sheet Projections

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Cash Flow From Operations Net Income/Loss $1,836,535 ($542,583) ($182,006) $793,308 $1,755,071 $5,309,061 $10,163,243 $13,388,181 $18,647,832 $21,805,084 Plus Depreciation Charges $1,837,064 $3,162,091 $4,673,315 $4,857,428 $5,292,622 $4,888,393 $5,549,683 $5,319,890 $5,757,693 $5,779,917 Less Distribution to Shareholders ($716,249) $0 $70,982 ($309,390) ($684,478) ($2,070,534) ($3,963,665) ($5,221,390) ($7,272,654) ($8,503,983) Minus Change in Accounts Receivable ($163,253) ($111,987) ($214,153) ($166,142) ($134,137) ($310,751) ($361,512) ($302,992) ($374,795) ($313,512) Minus Change in Other Current Assets ($148,969) ($102,188) ($195,415) ($151,605) ($122,400) ($283,560) ($329,880) ($276,480) ($342,000) ($286,080) Minus Change in Inventory $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Plus Change in Current Liabilities $436,908 ($204,956) $136,723 $125,750 ($945,924) ($846,488) ($1,857,799) ($1,889,401) ($2,888,776) ($2,925,131)

Net Cash Flow from Operations $3,082,036 $2,200,377 $4,289,447 $5,149,348 $5,160,753 $6,686,121 $9,200,070 $11,017,807 $13,527,300 $15,556,295

Cash Flows from Investing Activities Purchases - Capital Expenditures ($9,092,991) ($19,867,553) ($13,642,298) ($9,414,212) ($20,492,836) ($7,889,737) ($18,421,081) ($16,587,818) ($9,414,212) ($20,492,836)

Net Cash Flow from Investing ($9,092,991) ($19,867,553) ($13,642,298) ($9,414,212) ($20,492,836) ($7,889,737) ($18,421,081) ($16,587,818) ($9,414,212) ($20,492,836)

Cash Flows from Financing Activities Cash Received from Borrowing $55,300,000 ($200,000) $0 $20,812,000 $0 $20,812,000 $0 $20,812,000 $0 ($34,188,000) Cash Received from Investors $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Net Cash Flow from Financing $55,300,000 ($200,000) $0 $20,812,000 $0 $20,812,000 $0 $20,812,000 $0 ($34,188,000)

Net Cash Flow $49,289,045 ($17,867,176) ($9,352,851) $16,547,136 ($15,332,083) $19,608,384 ($9,221,011) $15,241,989 $4,113,088 ($39,124,541)Cash Available at beginning of period $50,000 $49,339,045 $31,471,870 $22,119,019 $38,666,155 $23,334,073 $42,942,457 $33,721,446 $48,963,435 $53,076,523

Net Cumulative Cash Flow $49,339,045 $31,471,870 $22,119,019 $38,666,155 $23,334,073 $42,942,457 $33,721,446 $48,963,435 $53,076,523 $13,951,983

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Quick Ratio 112.928 135.683 59.996 25.189 14.318 14.992 10.921 11.334 11.657 2.409 Current Ratio 113.643 137.953 62.535 26.006 15.245 15.726 11.826 12.115 12.556 3.220

Gross Margin 0.442 0.442 0.442 0.442 0.442 0.442 0.442 0.442 0.442 0.442 Net Margin 0.308 -0.054 -0.010 0.033 0.061 0.132 0.190 0.208 0.239 0.244

10-Yr. Cash Flow Statement Projections

Performance Ratios

$80,194,835

Based on a discount rate of: 25% for risk$49,339,045 $49,289,045 -$17,867,176 -$9,352,851 $16,547,136 -$15,332,083 $19,608,384 -$9,221,011 $15,241,989 $4,113,088

$36,966,784 (13,400,382) (7,014,638) 12,410,352 (11,499,062) 14,706,288 (6,915,758) 11,431,492 3,084,816

-$10,050,286 (5,260,978) 9,307,764 (8,624,296) 11,029,716 (5,186,819) 8,573,619 2,313,612

-$3,945,734 6,980,823 (6,468,222) 8,272,287 (3,890,114) 6,430,214 1,735,209

$5,235,617 (4,851,167) 6,204,215 (2,917,586) 4,822,661 1,301,407

-$3,638,375 4,653,161 (2,188,189) 4,822,661 976,055

$3,489,871 (1,641,142) 4,822,661 732,041

-$1,230,856 4,822,661 732,041

$3,616,996 549,031

$411,773

Company

Valuation Based on PV of Future Cash Flows =

PRESENT VALUE VALUATION ANALYSIS

$77,545,427Based on a discount rate of: 25% for risk See Next Page for 10-year present value analysis.

$49,339,045 $49,289,045 -$17,867,176 -$9,352,851 $16,547,136$36,966,784 (13,400,382) (7,014,638) 12,410,352

-$10,050,286 (5,260,978) 9,307,764 -$3,945,734 6,980,823

$5,235,617

EBIT Multiple 2003 2004 2005 2006 2007 2008 2009 2010 2011 20126 $11,788,566 $19,776,270 $38,995,745 $52,182,586 $63,429,207 $91,693,176 $124,786,006 $152,122,275 $186,307,004 $214,749,2628 $15,718,088 $26,368,361 $51,994,326 $69,576,781 $84,572,276 $122,257,569 $166,381,342 $202,829,700 $248,409,338 $286,332,349

10 $19,647,610 $32,960,451 $64,992,908 $86,970,976 $105,715,346 $152,821,961 $207,976,677 $253,537,126 $310,511,673 $357,915,43612 $23,577,131 $39,552,541 $77,991,489 $104,365,171 $126,858,415 $183,386,353 $249,572,012 $304,244,551 $372,614,007 $429,498,52314 $27,506,653 $46,144,631 $90,990,071 $121,759,366 $148,001,484 $213,950,745 $291,167,348 $354,951,976 $434,716,342 $501,081,610

P/E Multiple 2003 2004 2005 2006 2007 2008 2009 2010 2011 20126 $110,192 -$32,555 -$10,920 $47,598 $105,304 $318,544 $609,795 $803,291 $1,118,870 $1,308,3058 $146,923 -$43,407 -$14,560 $63,465 $140,406 $424,725 $813,059 $1,071,054 $1,491,827 $1,744,407

10 $183,654 -$54,258 -$18,201 $79,331 $175,507 $530,906 $1,016,324 $1,338,818 $1,864,783 $2,180,50812 $220,384 -$65,110 -$21,841 $95,197 $210,608 $637,087 $1,219,589 $1,606,582 $2,237,740 $2,616,61014 $257,115 -$75,962 -$25,481 $111,063 $245,710 $743,268 $1,422,854 $1,874,345 $2,610,696 $3,052,712

P/E Multiple 2003 2004 2005 2006 2007 2008 2009 2010 2011 20126 $44,786.71 ($13,231.71) ($4,438.50) $19,346.03 $42,800.08 $129,469.55 $247,846.19 $326,491.22 $454,755.84 $531,750.268 $59,715.61 ($17,642.28) ($5,918.00) $25,794.70 $57,066.77 $172,626.07 $330,461.58 $435,321.63 $606,341.12 $709,000.34

10 $74,644.52 ($22,052.86) ($7,397.49) $32,243.38 $71,333.46 $215,782.58 $413,076.98 $544,152.03 $757,926.40 $886,250.4312 $89,573.42 ($26,463.43) ($8,876.99) $38,692.05 $85,600.15 $258,939.10 $495,692.37 $652,982.44 $909,511.68 $1,063,500.5114 $104,502.32 ($30,874.00) ($10,356.49) $45,140.73 $99,866.84 $302,095.62 $578,307.77 $761,812.85 $1,061,096.96 $1,240,750.60

IMPORTANT: ROI estimate assumes only round one investment. With additional roundsof investment and increased capital contributing to increased market share and revenues,it is expected that ROI will increase proportionately in future investment rounds.Assumptions:Projected Outstanding Units equal 100Par Value = $0

Price per Unit

VALUATION ANALYSES

COMPANY

Valuation Based on PV of Future Cash Flows =

PRESENT VALUE METHOD

NOI MULTIPLE METHOD:Projected Capitalization

P/E MULTIPLE METHOD:Price per Unit

Company

2003 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

Number of Beds 164 169 169 174 174 196 218 218 218 218 218 238Total 164 169 169 174 174 196 218 218 218 218 218 238

2004 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

Number of Beds 244 238 264 304 334 334 334 364 364 364 394 394Total 244 238 264 304 334 334 334 364 364 364 394 394

2005 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

Number of Beds 424 464 464 464 544 544 544 624 624 624 704 704Total 424 464 464 464 544 544 544 624 624 624 704 704

2006 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

Number of Beds 744 744 744 744 744 744 744 744 744 744 744 744Total 744 744 744 744 744 744 744 744 744 744 744 744

2007 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

Number of Beds 744 744 744 824 824 824 904 904 904 984 984 984Total 744 744 744 824 824 824 904 904 904 984 984 984

2008 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

Number of Beds 1,084 1,084 1,084 1,164 1,164 1,164 1,244 1,244 1,244 1,324 1,324 1,324Total 1,084 1,084 1,084 1,164 1,164 1,164 1,244 1,244 1,244 1,324 1,324 1,324

2009 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

Number of Beds 1,424 1,424 1,424 1,504 1,504 1,504 1,584 1,584 1,584 1,664 1,664 1,664Total 1,424 1,424 1,424 1,504 1,504 1,504 1,584 1,584 1,584 1,664 1,664 1,664

2010 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

Number of Beds 1,744 1,744 1,744 1,824 1,824 1,824 1,904 1,904 1,904 1,984 1,984 1,984Total 1,744 1,744 1,744 1,824 1,824 1,824 1,904 1,904 1,904 1,984 1,984 1,984

2011 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

Number of Beds 2,064 2,064 2,064 2,144 2,144 2,144 2,224 2,224 2,224 2,304 2,304 2,304Total 2,064 2,064 2,064 2,144 2,144 2,144 2,224 2,224 2,224 2,304 2,304 2,304

2012 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

Number of Beds 2,384 2,384 2,384 2,464 2,464 2,464 2,544 2,544 2,544 2,624 2,624 2,624Total 2,384 2,384 2,384 2,464 2,464 2,464 2,544 2,544 2,544 2,624 2,624 2,624

TOTALS Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 9 Year 9 Year 10Number of Beds 238 394 704 744 984 1,324 1,664 1,984 2,304 2,624

Total 2,374 3,932 6,728 8,928 10,368 9,624 8,880 8,136 7,312 6,488#REF! #REF!

2003 Jan Feb Mar Apr May June July Aug Sept Oct Nov DecNo. Facilities Completed 13 14 14 15 15 15 15 15 15 15 15 19No. Facilities under Constr. Ph 1 2 1 1 0 5 5 5 5 5 5 5 5

PROJECTED GROWTH IN UNITS - UNITS EQUAL NUMBER OF BEDS

PROJECTED GROWTH IN FACILITIES

No Facilities Under Contr. HUD 4 4 4 4 4 4 0No. Facilities under Constr. Ph 2 5 5 5 5 5No. Facilities under Constr. Ph 3 5 5No. Facilities under Constr. Ph 4No. Facilities under Constr. Ph 5No. Facilities under Constr. Ph 6No. Facilities under Constr. Ph 7Total No. Facilities 15 15 15 15 20 24 24 29 29 29 34 34

No. Facilities < 1 Year 4 5 5 6 6 4 2 2 2 2 2 6No. Facilities > 1 Year 9 9 9 9 9 11 13 13 13 13 13 13

Total 13 14 14 15 15 15 15 15 15 15 15 19

2004 Jan Feb Mar Apr May June July Aug Sept Oct Nov DecNo. Facilities Completed 19 18 19 19 24 24 24 29 29 29 34 34No. Facilities under Constr. Ph 1 5 5 5 5No Facilities Under Contr. HUDNo. Facilities under Constr. Ph 2 5 5 5 5 5 5 5No. Facilities under Constr. Ph 3 5 5 5 5 5 5 5 5 5 5No. Facilities under Constr. Ph 4 5 5 5 5 5 5 5 5 5 5 5No. Facilities under Constr. Ph 5 5 5 5 5 5 5 5 5No. Facilities under Constr. Ph 6 5 5 5 5 5No. Facilities under Constr. Ph 7 5 5Total No. Facilities 34 38 39 39 44 44 44 49 49 49 54 54

No. Facilities < 1 Year 6 5 4 0 5 5 5 10 10 10 15 15No. Facilities > 1 Year 13 13 15 19 19 19 19 19 19 19 19 19

Total 19 18 19 19 24 24 24 29 29 29 34 34

2005 Jan Feb Mar Apr May June July Aug Sept Oct Nov DecNo. Facilities Completed 34 39 39 39 44 44 44 49 49 49 54 54No. Facilities under Constr. Ph 1No Facilities Under Contr. HUDNo. Facilities under Constr. Ph 2No. Facilities under Constr. Ph 3No. Facilities under Constr. Ph 4 5No. Facilities under Constr. Ph 5 5 5 5 5No. Facilities under Constr. Ph 6 5 5 5 5 5 5 5No. Facilities under Constr. Ph 7 5 5 5 5 5 5 5 5 5 5Total No. Facilities 54 54 54 54 54 54 54 54 54 54 54 54

No. Facilities < 1 Year 15 20 20 20 20 20 20 20 20 20 20 20No. Facilities > 1 Year 19 19 19 19 24 24 24 29 29 29 34 34

Total 34 39 39 39 44 44 44 49 49 49 54 54

2006 Jan Feb Mar Apr May June July Aug Sept Oct Nov DecNo. Facilities Completed 54 54 54 54 54 54 54 54 54 54 54 54No. Facilities under Constr. Ph 8 5 5 5 5 5 5 5 5 5 5 5 5No. Facilities under Constr. Ph 9 5 5 5 5 5 5 5 5 5No. Facilities under Constr. Ph 10 5 5 5 5 5 5No. Facilities under Constr. Ph 11 5 5 5No. Facilities under Constr. Ph 12No. Facilities under Constr. Ph 13No. Facilities under Constr. Ph 14No. Facilities under Constr. Ph 15Total No. Facilities 59 59 59 64 64 64 69 69 69 74 74 74

No. Facilities < 1 Year 20 20 20 20 20 20 20 20 20 20 20 20No. Facilities > 1 Year 34 34 34 34 34 34 34 34 34 34 34 34

Total 54 54 54 54 54 54 54 54 54 54 54 54

2007 Jan Feb Mar Apr May June July Aug Sept Oct Nov DecNo. Facilities Completed 59 59 59 64 64 64 69 69 69 74 74 74No. Facilities under Constr. Ph 8

No. Facilities under Constr. Ph 9 5 5 5No. Facilities under Constr. Ph 10 5 5 5 5 5 5No. Facilities under Constr. Ph 11 5 5 5 5 5 5 5 5 5No. Facilities under Constr. Ph 12 5 5 5 5 5 5 5 5 5 5 5 5No. Facilities under Constr. Ph 13 5 5 5 5 5 5 5 5 5No. Facilities under Constr. Ph 14 5 5 5 5 5 5No. Facilities under Constr. Ph 15 5 5 5Total No. Facilities 79 79 79 84 84 84 89 89 89 94 94 94

No. Facilities < 1 Year 20 20 20 20 20 20 20 20 20 20 20 20No. Facilities > 1 Year 39 39 39 44 44 44 49 49 49 54 54 54

Total 59 59 59 64 64 64 69 69 69 74 74 74

2008 Jan Feb Mar Apr May June July Aug Sept Oct Nov DecNo. Facilities Completed 79 79 79 84 84 84 89 89 89 94 94 94No. Facilities under Constr. Ph 17 5 5 5 5 5 5 5 5 5No. Facilities under Constr. Ph 18 5 5 5 5 5 5No. Facilities under Constr. Ph 19 5 5 5No. Facilities under Constr. Ph 20No. Facilities under Constr. Ph 21No. Facilities under Constr. Ph 13 5 5 5No. Facilities under Constr. Ph 14 5 5 5 5 5 5No. Facilities under Constr. Ph 15 5 5 5 5 5 5 5 5 5No. Facilities under Constr. Ph 16 5 5 5 5 5 5 5 5 5 5 5 5Total No. Facilities 99 99 99 104 104 104 109 109 109 114 114 114

No. Facilities < 1 Year 20 20 20 20 20 20 20 20 20 20 20 20No. Facilities > 1 Year 59 59 59 64 64 64 69 69 69 74 74 74

Total 79 79 79 84 84 84 89 89 89 94 94 94

2009 Jan Feb Mar Apr May June July Aug Sept Oct Nov DecNo. Facilities Completed 99 99 99 104 104 104 109 109 109 114 114 114No. Facilities under Constr. Ph 17 5 5 5No. Facilities under Constr. Ph 18 5 5 5 5 5 5No. Facilities under Constr. Ph 19 5 5 5 5 5 5 5 5 5No. Facilities under Constr. Ph 20 5 5 5 5 5 5 5 5 5 5 5 5No. Facilities under Constr. Ph 21 5 5 5 5 5 5 5 5 5No. Facilities under Constr. Ph 22 5 5 5 5 5 5No. Facilities under Constr. Ph 23 5 5 5No. Facilities under Constr. Ph 24No. Facilities under Constr. Ph 25Total No. Facilities 119 119 119 124 124 124 129 129 129 134 134 134

No. Facilities < 1 Year 20 20 20 20 20 20 20 20 20 20 20 20No. Facilities > 1 Year 79 79 79 84 84 84 89 89 89 94 94 94

Total 99 99 99 104 104 104 109 109 109 114 114 114

2010 Jan Feb Mar Apr May June July Aug Sept Oct Nov DecNo. Facilities Completed 119 119 119 124 124 124 129 129 129 134 134 134No. Facilities under Constr. Ph 26 5 5 5 5 5 5No. Facilities under Constr. Ph 27 5 5 5No. Facilities under Constr. Ph 28No. Facilities under Constr. Ph 29No. Facilities under Constr. Ph 21 5 5 5No. Facilities under Constr. Ph 22 5 5 5 5 5 5No. Facilities under Constr. Ph 23 5 5 5 5 5 5 5 5 5No. Facilities under Constr. Ph 24 5 5 5 5 5 5 5 5 5 5 5 5No. Facilities under Constr. Ph 25 5 5 5 5 5 5 5 5 5Total No. Facilities 139 139 139 144 144 144 149 149 149 154 154 154

No. Facilities < 1 Year 20 20 20 20 20 20 20 20 20 20 20 20No. Facilities > 1 Year 99 99 99 104 104 104 109 109 109 114 114 114

Total 119 119 119 124 124 124 129 129 129 134 134 134

2011 Jan Feb Mar Apr May June July Aug Sept Oct Nov DecNo. Facilities Completed 139 139 139 144 144 144 149 149 149 154 154 154

No. Facilities under Constr. Ph 26 5 5 5 5 5 5No. Facilities under Constr. Ph 27 5 5 5 5 5 5 5 5 5No. Facilities under Constr. Ph 28 5 5 5 5 5 5 5 5 5 5 5 5No. Facilities under Constr. Ph 29 5 5 5 5 5 5 5 5 5No. Facilities under Constr. Ph 30 5 5 5 5 5 5No. Facilities under Constr. Ph 31 5 5 5No. Facilities under Constr. Ph 32No. Facilities under Constr. Ph 33No. Facilities under Constr. Ph 25 5 5 5Total No. Facilities 159 159 159 164 164 164 169 169 169 174 174 174

No. Facilities < 1 Year 20 20 20 20 20 20 20 20 20 20 20 20No. Facilities > 1 Year 119 119 119 124 124 124 129 129 129 134 134 134

Total 139 139 139 144 144 144 149 149 149 154 154 154

2012 Jan Feb Mar Apr May June July Aug Sept Oct Nov DecNo. Facilities Completed 159 159 159 164 164 164 169 169 169 174 174 174No. Facilities under Constr. Ph 35 5 5 5No. Facilities under Constr. Ph 27No. Facilities under Constr. Ph 28No. Facilities under Constr. Ph 29 5 5 5No. Facilities under Constr. Ph 30 5 5 5 5 5 5No. Facilities under Constr. Ph 31 5 5 5 5 5 5 5 5 5No. Facilities under Constr. Ph 32 5 5 5 5 5 5 5 5 5 5 5 5No. Facilities under Constr. Ph 33 5 5 5 5 5 5 5 5 5No. Facilities under Constr. Ph 34 5 5 5 5 5 5Total No. Facilities 179 179 179 184 184 184 189 189 189 194 194 194

No. Facilities < 1 Year 20 20 20 20 20 20 20 20 20 20 20 20No. Facilities > 1 Year 139 139 139 144 144 144 149 149 149 154 154 154

Total 159 159 159 164 164 164 169 169 169 174 174 174

Company

2003 Monthly Revenue Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec TotalRevenue Type Monthly

PricingBeds at Rate 1 $2,300 $264,040 $272,090 $272,090 $280,140 $280,140 $315,560 $350,980 $350,980 $350,980 $350,980 $350,980 $383,180 $3,822,140Beds at Rate 2 $2,800 $68,880 $70,980 $70,980 $73,080 $73,080 $82,320 $91,560 $91,560 $91,560 $91,560 $91,560 $99,960 $997,080Beds at Rate 3 $3,200 $78,720 $81,120 $81,120 $83,520 $83,520 $94,080 $104,640 $104,640 $104,640 $104,640 $104,640 $114,240 $1,139,520

Total Revenue $411,640 $424,190 $424,190 $436,740 $436,740 $491,960 $547,180 $547,180 $547,180 $547,180 $547,180 $597,380 $5,958,740

2004 Monthly Revenue Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec TotalRevenue Type Monthly

PricingBeds at Rate 1 $2,300 $364,780 $355,810 $394,680 $454,480 $499,330 $499,330 $499,330 $544,180 $544,180 $544,180 $589,030 $589,030 $5,878,340Beds at Rate 2 $2,800 $102,480 $99,960 $110,880 $127,680 $140,280 $140,280 $140,280 $152,880 $152,880 $152,880 $165,480 $165,480 $1,651,440Beds at Rate 3 $3,200 $156,160 $152,320 $168,960 $194,560 $213,760 $213,760 $213,760 $232,960 $232,960 $232,960 $252,160 $252,160 $2,516,480

Total Revenue $623,420 $608,090 $674,520 $776,720 $853,370 $853,370 $853,370 $930,020 $930,020 $930,020 $1,006,670 $1,006,670 $10,046,260

2005 Monthly Revenue Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec TotalRevenue Type Monthly

PricingBeds at Rate 1 $2,400 $661,440 $723,840 $723,840 $723,840 $848,640 $848,640 $848,640 $973,440 $973,440 $973,440 $1,098,240 $1,098,240 $10,495,680Beds at Rate 2 $2,900 $184,440 $201,840 $201,840 $201,840 $236,640 $236,640 $236,640 $271,440 $271,440 $271,440 $306,240 $306,240 $2,926,680Beds at Rate 3 $3,300 $279,840 $306,240 $306,240 $306,240 $359,040 $359,040 $359,040 $411,840 $411,840 $411,840 $464,640 $464,640 $4,440,480

Total Revenue $1,125,720 $1,231,920 $1,231,920 $1,231,920 $1,444,320 $1,444,320 $1,444,320 $1,656,720 $1,656,720 $1,656,720 $1,869,120 $1,869,120 $17,862,840

2006 Monthly Revenue Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec TotalRevenue Type Monthly

PricingBeds at Rate 1 $2,400 $1,071,360 $1,071,360 $1,071,360 $1,071,360 $1,071,360 $1,071,360 $1,071,360 $1,071,360 $1,071,360 $1,071,360 $1,071,360 $1,071,360 $12,856,320Beds at Rate 2 $2,900 $431,520 $431,520 $431,520 $431,520 $431,520 $431,520 $431,520 $431,520 $431,520 $431,520 $431,520 $431,520 $5,178,240Beds at Rate 3 $3,300 $491,040 $491,040 $491,040 $491,040 $491,040 $491,040 $491,040 $491,040 $491,040 $491,040 $491,040 $491,040 $5,892,480

Total Revenue $1,993,920 $1,993,920 $1,993,920 $1,993,920 $1,993,920 $1,993,920 $1,993,920 $1,993,920 $1,993,920 $1,993,920 $1,993,920 $1,993,920 $23,927,040

2007 Monthly Revenue Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec TotalRevenue Type Monthly

PricingBeds at Rate 1 $2,500 $1,116,000 $1,116,000 $1,116,000 $1,236,000 $1,236,000 $1,236,000 $1,356,000 $1,356,000 $1,356,000 $1,476,000 $1,476,000 $1,476,000 $15,552,000Beds at Rate 2 $3,000 $446,400 $446,400 $446,400 $494,400 $494,400 $494,400 $542,400 $542,400 $542,400 $590,400 $590,400 $590,400 $6,220,800Beds at Rate 3 $3,400 $505,920 $505,920 $505,920 $560,320 $560,320 $560,320 $614,720 $614,720 $614,720 $669,120 $669,120 $669,120 $7,050,240

Total Revenue $2,068,320 $2,068,320 $2,068,320 $2,290,720 $2,290,720 $2,290,720 $2,513,120 $2,513,120 $2,513,120 $2,735,520 $2,735,520 $2,735,520 $28,823,040

2008 Monthly Revenue Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec TotalRevenue Type Monthly

PricingBeds at Rate 1 $2,500 $1,626,000 $1,626,000 $1,626,000 $1,746,000 $1,746,000 $1,746,000 $1,866,000 $1,866,000 $1,866,000 $1,986,000 $1,986,000 $1,986,000 $21,672,000Beds at Rate 2 $3,000 $650,400 $650,400 $650,400 $698,400 $698,400 $698,400 $746,400 $746,400 $746,400 $794,400 $794,400 $794,400 $8,668,800Beds at Rate 3 $3,400 $737,120 $737,120 $737,120 $791,520 $791,520 $791,520 $845,920 $845,920 $845,920 $900,320 $900,320 $900,320 $9,824,640

Total Revenue $3,013,520 $3,013,520 $3,013,520 $3,235,920 $3,235,920 $3,235,920 $3,458,320 $3,458,320 $3,458,320 $3,680,720 $3,680,720 $3,680,720 $40,165,440

2009 Monthly Revenue Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec TotalRevenue Type Monthly

PricingBeds at Rate 1 $2,600 $2,221,440 $2,221,440 $2,221,440 $2,346,240 $2,346,240 $2,346,240 $2,471,040 $2,471,040 $2,471,040 $2,595,840 $2,595,840 $2,595,840 $28,903,680Beds at Rate 2 $3,100 $882,880 $882,880 $882,880 $932,480 $932,480 $932,480 $982,080 $982,080 $982,080 $1,031,680 $1,031,680 $1,031,680 $11,487,360Beds at Rate 3 $3,500 $996,800 $996,800 $996,800 $1,052,800 $1,052,800 $1,052,800 $1,108,800 $1,108,800 $1,108,800 $1,164,800 $1,164,800 $1,164,800 $12,969,600

Total Revenue $4,101,120 $4,101,120 $4,101,120 $4,331,520 $4,331,520 $4,331,520 $4,561,920 $4,561,920 $4,561,920 $4,792,320 $4,792,320 $4,792,320 $53,360,640

Unit Wholesale Sales

2010 Monthly Revenue Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec TotalRevenue Type Monthly

PricingBeds at Rate 1 $2,600 $2,720,640 $2,720,640 $2,720,640 $2,845,440 $2,845,440 $2,845,440 $2,970,240 $2,970,240 $2,970,240 $3,095,040 $3,095,040 $3,095,040 $34,894,080Beds at Rate 2 $3,100 $1,081,280 $1,081,280 $1,081,280 $1,130,880 $1,130,880 $1,130,880 $1,180,480 $1,180,480 $1,180,480 $1,230,080 $1,230,080 $1,230,080 $13,868,160Beds at Rate 3 $3,500 $1,220,800 $1,220,800 $1,220,800 $1,276,800 $1,276,800 $1,276,800 $1,332,800 $1,332,800 $1,332,800 $1,388,800 $1,388,800 $1,388,800 $15,657,600

Total Revenue $5,022,720 $5,022,720 $5,022,720 $5,253,120 $5,253,120 $5,253,120 $5,483,520 $5,483,520 $5,483,520 $5,713,920 $5,713,920 $5,713,920 $64,419,840

2011 Monthly Revenue Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec TotalRevenue Type Monthly

PricingBeds at Rate 1 $2,700 $3,343,680 $3,343,680 $3,343,680 $3,473,280 $3,473,280 $3,473,280 $3,602,880 $3,602,880 $3,602,880 $3,732,480 $3,732,480 $3,732,480 $42,456,960Beds at Rate 2 $3,200 $1,320,960 $1,320,960 $1,320,960 $1,372,160 $1,372,160 $1,372,160 $1,423,360 $1,423,360 $1,423,360 $1,474,560 $1,474,560 $1,474,560 $16,773,120Beds at Rate 3 $3,600 $1,486,080 $1,486,080 $1,486,080 $1,543,680 $1,543,680 $1,543,680 $1,601,280 $1,601,280 $1,601,280 $1,658,880 $1,658,880 $1,658,880 $18,869,760

Total Revenue $6,150,720 $6,150,720 $6,150,720 $6,389,120 $6,389,120 $6,389,120 $6,627,520 $6,627,520 $6,627,520 $6,865,920 $6,865,920 $6,865,920 $78,099,840

2012 Monthly Revenue Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec TotalRevenue Type Monthly

PricingBeds at Rate 1 $2,700 $3,862,080 $3,862,080 $3,862,080 $3,991,680 $3,991,680 $3,991,680 $4,121,280 $4,121,280 $4,121,280 $4,250,880 $4,250,880 $4,250,880 $48,677,760Beds at Rate 2 $3,200 $1,525,760 $1,525,760 $1,525,760 $1,576,960 $1,576,960 $1,576,960 $1,628,160 $1,628,160 $1,628,160 $1,679,360 $1,679,360 $1,679,360 $19,230,720Beds at Rate 3 $3,600 $1,716,480 $1,716,480 $1,716,480 $1,774,080 $1,774,080 $1,774,080 $1,831,680 $1,831,680 $1,831,680 $1,889,280 $1,889,280 $1,889,280 $21,634,560

Total Revenue $7,104,320 $7,104,320 $7,104,320 $7,342,720 $7,342,720 $7,342,720 $7,581,120 $7,581,120 $7,581,120 $7,819,520 $7,819,520 $7,819,520 $89,543,040

Total Annual Revenues 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Total

Beds at Rate 1 $3,822,140 $5,878,340 $10,495,680 $12,856,320 $15,552,000 $21,672,000 $28,903,680 $34,894,080 $42,456,960 $48,677,760 $225,208,960Beds at Rate 2 $997,080 $1,651,440 $2,926,680 $5,178,240 $6,220,800 $8,668,800 $11,487,360 $13,868,160 $16,773,120 $19,230,720 $87,002,400Beds at Rate 3 $1,139,520 $2,516,480 $4,440,480 $5,892,480 $7,050,240 $9,824,640 $12,969,600 $15,657,600 $18,869,760 $21,634,560 $99,995,360

Total Revenue $5,958,740 $10,046,260 $17,862,840 $23,927,040 $28,823,040 $40,165,440 $53,360,640 $64,419,840 $78,099,840 $89,543,040 $412,206,720

Company

Detailed Expenditures (Monthly) 2000E2003 2003

Period: Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec TotalCost of Operations

Accounting & Legal $4,446 $4,581 $4,581 $4,717 $4,717 $5,313 $5,910 $5,910 $5,910 $5,910 $5,910 $6,452 $64,354Activities and Entertainment $1,029 $1,060 $1,060 $1,092 $1,092 $1,230 $1,368 $1,368 $1,368 $1,368 $1,368 $1,493 $14,897Advertising $8,192 $8,441 $8,441 $8,691 $8,691 $9,790 $10,889 $10,889 $10,889 $10,889 $10,889 $11,888 $118,579Bank Charges $659 $679 $679 $699 $699 $787 $875 $875 $875 $875 $875 $956 $9,534Commercial insurances $1,605 $1,654 $1,654 $1,703 $1,703 $1,919 $2,134 $2,134 $2,134 $2,134 $2,134 $2,330 $23,239Dues and Subscriptions $123 $127 $127 $131 $131 $148 $164 $164 $164 $164 $164 $179 $1,788Emloyee Benefits $1,441 $1,485 $1,485 $1,529 $1,529 $1,722 $1,915 $1,915 $1,915 $1,915 $1,915 $2,091 $20,856Employee Training $864 $891 $891 $917 $917 $1,033 $1,149 $1,149 $1,149 $1,149 $1,149 $1,254 $12,513Food and Supplies $22,558 $23,246 $23,246 $23,933 $23,933 $26,959 $29,985 $29,985 $29,985 $29,985 $29,985 $32,736 $326,539Licenses and Permits $412 $424 $424 $437 $437 $492 $547 $547 $547 $547 $547 $597 $5,959Management Travel $1,194 $1,230 $1,230 $1,267 $1,267 $1,427 $1,587 $1,587 $1,587 $1,587 $1,587 $1,732 $17,280Office Expense $5,187 $5,345 $5,345 $5,503 $5,503 $6,199 $6,894 $6,894 $6,894 $6,894 $6,894 $7,527 $75,080Payroll Taxes $22,229 $22,906 $22,906 $23,584 $23,584 $26,566 $29,548 $29,548 $29,548 $29,548 $29,548 $32,259 $321,772Property Taxes $12,349 $12,726 $12,726 $13,102 $13,102 $14,759 $16,415 $16,415 $16,415 $16,415 $16,415 $17,921 $178,762Repairs and Maint $3,664 $3,775 $3,775 $3,887 $3,887 $4,378 $4,870 $4,870 $4,870 $4,870 $4,870 $5,317 $53,033Salaries and Wages $132,260 $136,292 $136,292 $140,325 $140,325 $158,067 $175,809 $175,809 $175,809 $175,809 $175,809 $191,938 $1,914,543Telephone $6,051 $6,236 $6,236 $6,420 $6,420 $7,232 $8,044 $8,044 $8,044 $8,044 $8,044 $8,781 $87,593Utilities $5,450 $5,616 $5,616 $5,782 $5,782 $6,514 $7,245 $7,245 $7,245 $7,245 $7,245 $7,909 $78,894

Percantage of Revenues 56% 56% 56% 56% 56% 56% 56% 56% 56% 56% 56% 56%

Mortgage/Bond Interest $72,037 $74,233 $74,233 $76,430 $76,430 $73,430 $73,430 $73,430 $297,917 $297,917 $297,917 $297,917 $1,785,321

Total COGS and Interest $301,749 $310,948 $310,948 $320,148 $320,148 $347,963 $378,778 $378,778 $603,265 $603,265 $603,265 $631,279 $5,110,536Executive & Staff Corporate Expenses

CEO $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $90,000President $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0CFO $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $90,000VP Development $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $90,000Operations Consultant $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $36,000VP Operations $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Controller (.5 fte) $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,083 $2,083 $2,083 $6,249Grant Writer/Govt Liaison $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Other Staff $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $36,000Employee Benefits $6,270 $6,270 $6,270 $6,270 $6,270 $6,270 $6,270 $6,270 $6,270 $6,728 $6,728 $6,728 $76,615Bonus $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other Corporate ExpensesAccounting and Legal $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $27,000Auto $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $18,000Contingency $0 $0 $0 $0 $0 $0 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $15,000Insurance $0 $0 $0 $0 $0 $0 $750 $750 $750 $750 $750 $750 $4,500Office Expense $200 $200 $200 $200 $200 $200 $500 $500 $500 $500 $500 $500 $4,200Professional Fees $0 $0 $0 $0 $0 $0 $15,000 $15,000 $15,000 $15,000 $15,000 $15,000 $90,000Rent $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $14,400Telephone $800 $800 $800 $800 $800 $800 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $10,800Travel $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $54,000Utilities $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $6,000

Total Corporate Expenses $43,970 $43,970 $43,970 $43,970 $43,970 $43,970 $66,220 $66,220 $66,220 $68,761 $68,761 $68,761 $668,764

Total Ops and Corp Expenses $345,719 $354,918 $354,918 $364,118 $364,118 $391,933 $444,998 $444,998 $669,485 $672,027 $672,027 $700,040 $5,779,300

Expenditure Summary Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec TotalDepartmentCost of Goods Sold $229,712 $236,715 $236,715 $243,718 $243,718 $274,533 $305,348 $305,348 $305,348 $305,348 $305,348 $333,362 $3,325,215Mortgage Interest $72,037 $74,233 $74,233 $76,430 $76,430 $73,430 $73,430 $73,430 $297,917 $297,917 $297,917 $297,917 $1,785,321Corporate Expenses $43,970 $43,970 $43,970 $43,970 $43,970 $43,970 $66,220 $66,220 $66,220 $68,761 $68,761 $68,761 $668,764

Total Operating Costs $345,719 $354,918 $354,918 $364,118 $364,118 $391,933 $444,998 $444,998 $669,485 $672,027 $672,027 $700,040 $5,779,300

Expenditures Quarterly & Annually 2003

Period: Q1 Q2 Q3 Q4 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Cost of Goods Sold (Operations)

Accounting & Legal $13,608 $14,747 $17,729 $18,271 $64,354 $108,500 $192,919 $258,412 $311,289 $433,787 $576,295 $695,734 $843,478 $967,065Activities and Entertainment $3,150 $3,414 $4,104 $4,229 $14,897 $25,116 $44,657 $59,818 $72,058 $100,414 $133,402 $161,050 $195,250 $223,858Advertising $25,074 $27,172 $32,667 $33,666 $118,579 $199,921 $355,471 $476,148 $573,578 $799,292 $1,061,877 $1,281,955 $1,554,187 $1,781,906Bank Charges $2,016 $2,185 $2,626 $2,707 $9,534 $16,074 $28,581 $38,283 $46,117 $64,265 $85,377 $103,072 $124,960 $143,269Commercial insurances $4,914 $5,325 $6,402 $6,598 $23,239 $39,180 $69,665 $93,315 $112,410 $156,645 $208,106 $251,237 $304,589 $349,218Dues and Subscriptions $378 $410 $492 $508 $1,788 $3,014 $5,359 $7,178 $8,647 $12,050 $16,008 $19,326 $23,430 $26,863Emloyee Benefits $4,410 $4,779 $5,745 $5,921 $20,856 $35,162 $62,520 $83,745 $100,881 $140,579 $186,762 $225,469 $273,349 $313,401Employee Training $2,646 $2,867 $3,447 $3,553 $12,513 $21,097 $37,512 $50,247 $60,528 $84,347 $112,057 $135,282 $164,010 $188,040Food and Supplies $69,049 $74,826 $89,956 $92,707 $326,539 $550,535 $978,884 $1,311,202 $1,579,503 $2,201,066 $2,924,163 $3,530,207 $4,279,871 $4,906,959Licenses and Permits $1,260 $1,365 $1,642 $1,692 $5,959 $10,046 $17,863 $23,927 $28,823 $40,165 $53,361 $64,420 $78,100 $89,543Management Travel $3,654 $3,960 $4,760 $4,906 $17,280 $29,134 $51,802 $69,388 $83,587 $116,480 $154,746 $186,818 $226,490 $259,675Office Expense $15,876 $17,205 $20,683 $21,316 $75,080 $126,583 $225,072 $301,481 $363,170 $506,085 $672,344 $811,690 $984,058 $1,128,242Payroll Taxes $68,041 $73,734 $88,643 $91,354 $321,772 $542,498 $964,593 $1,292,060 $1,556,444 $2,168,934 $2,881,475 $3,478,671 $4,217,391 $4,835,324Property Taxes $37,801 $40,963 $49,246 $50,752 $178,762 $301,388 $535,885 $717,811 $864,691 $1,204,963 $1,600,819 $1,932,595 $2,342,995 $2,686,291Repairs and Maint $11,214 $12,152 $14,610 $15,056 $53,033 $89,412 $158,979 $212,951 $256,525 $357,472 $474,910 $573,337 $695,089 $796,933Salaries and Wages $404,844 $438,716 $527,427 $543,556 $1,914,543 $3,227,863 $5,739,330 $7,687,758 $9,260,843 $12,905,156 $17,144,774 $20,698,095 $25,093,479 $28,770,179Telephone $18,522 $20,072 $24,131 $24,869 $87,593 $147,680 $262,584 $351,727 $423,699 $590,432 $784,401 $946,972 $1,148,068 $1,316,283Utilities $16,683 $18,078 $21,734 $22,399 $78,894 $133,012 $236,504 $316,794 $381,617 $531,790 $706,495 $852,919 $1,034,042 $1,185,550

Percantage of Revenues 56% 56% 56% 56% 56% 56% 56% 56% 56%

Mortgage Interest $220,504 $226,289 $444,777 $893,751 $1,785,321 $3,575,000 $3,575,000 $5,135,900 $5,135,900 $6,696,800 $6,696,800 $8,257,700 $8,257,700 $9,818,600

Cost of Goods Sold (Operations) $923,645 $988,259 $1,360,822 $1,837,810 $5,110,536 $9,181,215 $13,543,179 $18,488,145 $21,220,309 $29,110,722 $36,474,172 $44,206,548 $51,840,535 $59,787,198Executive & Staff Corporate Expenses

CEO $22,500 $22,500 $22,500 $22,500 $90,000 $130,000 $180,000 $240,000 $264,000 $290,400 $319,440 $351,384 $386,522 $425,175President $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0CFO $22,500 $22,500 $22,500 $22,500 $90,000 $130,000 $180,000 $240,000 $264,000 $290,400 $319,440 $351,384 $386,522 $425,175VP Development $22,500 $22,500 $22,500 $22,500 $90,000 $130,000 $180,000 $240,000 $264,000 $290,400 $319,440 $351,384 $386,522 $425,175Operations Consultant $9,000 $9,000 $9,000 $9,000 $36,000 $45,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000VP Operations $0 $0 $0 $0 $0 $75,000 $82,500 $90,750 $99,825 $109,808 $120,788 $132,867 $146,154 $160,769Controller (.5 fte) $0 $0 $0 $6,249 $6,249 $25,000 $27,500 $30,250 $33,275 $36,603 $40,263 $44,289 $48,718 $53,590Grant Writer/Govt Liaison $0 $0 $0 $0 $0 $35,000 $38,500 $42,350 $46,585 $51,244 $56,368 $62,005 $68,205 $75,026Other Staff $9,000 $9,000 $9,000 $9,000 $36,000 $60,000 $90,000 $120,000 $132,000 $145,200 $159,720 $175,692 $193,261 $212,587Employee Benefits $18,810 $18,810 $18,810 $20,185 $76,615 $110,000 $142,670 $178,937 $195,731 $214,204 $234,524 $256,877 $281,464 $308,511Bonus $0 $0 $0 $0 $0 $0 $0 $200,000 $350,000 $500,000 $650,000 $800,000 $950,000 $1,050,000

Other Corporate ExpensesAccounting and Legal $6,000 $6,000 $7,500 $7,500 $27,000 $40,000 $42,000 $44,100 $46,305 $48,620 $51,051 $53,604 $56,284 $59,098Auto $4,500 $4,500 $4,500 $4,500 $18,000 $25,000 $26,250 $27,563 $28,941 $30,388 $31,907 $33,502 $35,178 $36,936Contingency $0 $0 $7,500 $7,500 $15,000 $50,000 $52,500 $55,125 $57,881 $60,775 $63,814 $67,005 $70,355 $73,873Insurance $0 $0 $2,250 $2,250 $4,500 $12,000 $12,600 $13,230 $13,892 $14,586 $15,315 $16,081 $16,885 $17,729Office Expense $600 $600 $1,500 $1,500 $4,200 $15,000 $15,750 $16,538 $17,364 $18,233 $19,144 $20,101 $21,107 $22,162Professional Fees $0 $0 $45,000 $45,000 $90,000 $125,000 $131,250 $137,813 $144,703 $151,938 $159,535 $167,512 $175,888 $184,682Rent $3,600 $3,600 $3,600 $3,600 $14,400 $30,000 $31,500 $33,075 $34,729 $36,465 $38,288 $40,203 $42,213 $44,324Telephone $2,400 $2,400 $3,000 $3,000 $10,800 $15,000 $15,750 $16,538 $17,364 $18,233 $19,144 $20,101 $21,107 $22,162Travel $9,000 $9,000 $18,000 $18,000 $54,000 $80,000 $84,000 $88,200 $92,610 $97,241 $102,103 $107,208 $112,568 $118,196Utilities $1,500 $1,500 $1,500 $1,500 $6,000 $12,000 $12,600 $13,230 $13,892 $14,586 $15,315 $16,081 $16,885 $17,729

Total Corporate Expenses $131,910 $131,910 $198,660 $206,284 $668,764 $1,144,000 $1,395,370 $1,877,697 $2,167,096 $2,469,322 $2,785,601 $3,117,280 $3,465,838 $3,782,898

Total Ops and Corp Expenses $1,055,555 $1,120,169 $1,559,482 $2,044,093 $5,779,300 $10,325,215 $14,938,549 $20,365,842 $23,387,405 $31,580,044 $39,259,772 $47,323,827 $55,306,373 $63,570,096

Expenditure Summary Q1 Q2 Q3 Q4 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

DepartmentCost of Goods Sold $703,142 $761,970 $916,045 $944,059 $3,325,215 $5,606,215 $9,968,179 $13,352,245 $16,084,409 $22,413,922 $29,777,372 $35,948,848 $43,582,835 $49,968,598Mortgage Interest $220,504 $226,289 $444,777 $893,751 $1,785,321 $3,575,000 $3,575,000 $5,135,900 $5,135,900 $6,696,800 $6,696,800 $8,257,700 $8,257,700 $9,818,600Corporate Expenses $131,910 $131,910 $198,660 $206,284 $668,764 $1,144,000 $1,395,370 $1,877,697 $2,167,096 $2,469,322 $2,785,601 $3,117,280 $3,465,838 $3,782,898

Total Operating Costs $1,055,555 $1,120,169 $1,559,482 $2,044,093 $5,779,300 $10,325,215 $14,938,549 $20,365,842 $23,387,405 $31,580,044 $39,259,772 $47,323,827 $55,306,373 $63,570,096

Company

SEE ------------> for CAP Ex TABLE

CAP EX PurchasesDepr/Amort Schedule 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Total

3 Years $3,536,519 $4,340,620 $1,518,946 $3,564,253 $4,031,832 $1,393,943 $4,340,620 $1,861,522 $3,564,253 $4,031,832 $32,184,3407 Years $4,400,000 $1,160,000 $870,000 $290,000 $1,160,000 $580,000 $870,000 $1,160,000 $290,000 $1,160,000 $11,940,000 Non- Total39 Years $1,156,472 $13,299,428 $9,830,012 $5,204,124 $13,877,664 $5,204,124 $12,142,956 $12,142,956 $5,204,124 $13,877,664 $91,939,524 Purchases 3 Years 7 Years 39 Years Depreciable Per Year CummulativeNon-Deprc/Non-Amort $0 $1,067,505 $1,423,340 $355,835 $1,423,340 $711,670 $1,067,505 1423340 355835 1423340 $9,251,710 Year 1 $3,536,519 $4,400,000 $1,156,472 $0 $9,092,991 $9,092,991

Total $9,092,991 $19,867,553 $13,642,298 $9,414,212 $20,492,836 $7,889,737 $18,421,081 16587818 9414212 20492836 $145,315,574 Year 2 $4,340,620 $1,160,000 $13,299,428 $1,067,505 $19,867,553 $28,960,544Year 3 $1,518,946 $870,000 $9,830,012 $1,423,340 $13,642,298 $42,602,842Year 4 $3,564,253 $290,000 $5,204,124 $355,835 $9,414,212 $52,017,054

PLANNED Key Capital Expenditures - Facilities Buildout Year 5 $4,031,832 $1,160,000 $13,877,664 $1,423,340 $20,492,836 $72,509,890Year 6 $1,393,943 $580,000 $5,204,124 $711,670 $7,889,737 $80,399,627

2003 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Total Year 7 $4,340,620 $870,000 $12,142,956 $1,067,505 $18,421,081 $98,820,708 Year 8 $1,861,522 $1,160,000 $12,142,956 $1,423,340 $16,587,818 $115,408,526Hard Bldg Costs 0 0 0 0 0 0 578,236 578,236 $1,156,472 Year 9 $3,564,253 $290,000 $5,204,124 $355,835 $9,414,212 $124,822,738Soft Costs 0 0 0 0 101,364 67,579 33,788 33,788 $236,519 Year 10 $4,031,832 $1,160,000 $13,877,664 $1,423,340 $20,492,836 $145,315,574FF&E 0 0 0 0 0 0 0 0 $0Development Costs 0 0 0 0 200,000 2,000,000 200,000 0 $2,400,000 Total Thru 10 Years $32,184,340 $11,940,000 $91,939,524 $9,251,710 $145,315,574Land 0 0 0 0 0 0 0 0 $0Neg. CF 0 0 0 0 150,000 675,000 0 75,000 $900,000 Depreciation/Amort.

Total 0 0 0 0 0 0 0 0 451,364 2,742,579 812,024 687,024 $4,692,991 Year 1 $1,178,840 $628,571 $29,653 $0 $1,837,064 $1,837,064Year 2 $2,625,713 $165,714 $370,664 $0 $3,162,091 $4,999,156

2004 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Total Year 3 $3,132,028 $918,571 $622,716 $0 $4,673,315 $9,672,471 Year 4 $3,141,273 $960,000 $756,155 $0 $4,857,428 $14,529,899Hard Bldg Costs 578,236 1,156,472 1,156,472 1,156,472 1,156,472 1,156,472 1,156,472 1,156,472 1,156,472 1,156,472 1,156,472 1,156,472 $13,299,428 Year 5 $3,038,344 $1,142,286 $1,111,992 $0 $5,292,622 $19,822,521Soft Costs 67,579 33,788 33,788 67,579 33,788 33,788 67,579 33,788 33,788 67,579 33,788 33,788 $540,620 Year 6 $2,996,676 $646,286 $1,245,431 $0 $4,888,393 $24,710,914FF&E 0 0 290,000 0 0 290,000 0 0 290,000 0 0 290,000 $1,160,000 Year 7 $3,255,465 $737,429 $1,556,789 $0 $5,549,683 $30,260,596Development Costs 0 200,000 0 0 200,000 0 0 200,000 0 0 200,000 0 $800,000 Year 8 $2,532,028 $919,714 $1,868,147 $0 $5,319,890 $35,580,486Land 0 0 0 355,835 0 0 355,835 0 0 355,835 0 0 $1,067,505 Year 9 $3,255,465 $812,000 $1,690,228 $0 $5,757,693 $41,338,179Neg. CF 675,000 0 75,000 675,000 0 75,000 675,000 0 75,000 675,000 0 75,000 $3,000,000 Year 10 $3,152,536 $803,714 $1,823,667 $0 $5,779,917 $47,118,097

Total 1,320,815 1,390,260 1,555,260 2,254,886 1,390,260 1,555,260 2,254,886 1,390,260 1,555,260 2,254,886 1,390,260 1,555,260 $19,867,553Total Thru 10 Years $28,308,368 $7,734,286 $11,075,443 $0 $47,118,097

2005 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Total Hard Bldg Costs 1,156,472 1,156,472 1,156,472 1,156,472 1,156,472 1,156,472 1,156,472 578,236 578,236 578,236 $9,830,012Soft Costs 67,579 33,788 33,788 33,791 0 0 0 0 0 0 $168,946FF&E 0 0 290,000 0 0 290,000 0 0 290,000 0 $870,000Development Costs 0 0 0 0 0 0 0 0 0 0 $0Land 355,835 0 0 355,835 0 0 355,835 0 0 355,835 $1,423,340Neg. CF 675,000 0 0 675,000 0 0 0 0 0 0 $1,350,000

Total 2,254,886 1,190,260 1,480,260 2,221,098 1,156,472 1,446,472 1,512,307 578,236 868,236 934,071 0 0 $13,642,298

2006 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Total Hard Bldg Costs $0 $0 $0 $0 $0 $0 $578,236 $578,236 $578,236 $1,156,472 $1,156,472 $1,156,472 $5,204,124Soft Costs $0 $0 $33,788 $33,788 $33,788 $67,579 $33,788 $33,788 $67,579 $33,788 $33,788 $67,579 $439,253FF&E $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $290,000 $0 $290,000Development Costs $200,000 $0 $0 $200,000 $0 $0 $200,000 $0 $0 $200,000 $0 $0 $800,000Land $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $355,835 $355,835Neg. CF $0 $75,000 $0 $0 $75,000 $675,000 $0 $75,000 $675,000 $0 $75,000 $675,000 $2,325,000

Total $200,000 $75,000 $33,788 $233,788 $108,788 $742,579 $812,024 $687,024 $1,320,815 $1,390,260 $1,555,260 $2,254,886 $9,414,212

2007 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Total Hard Bldg Costs $1,156,472 $1,156,472 $1,156,472 $1,156,472 $1,156,472 $1,156,472 $1,156,472 $1,156,472 $1,156,472 $1,156,472 $1,156,472 $1,156,472 $13,877,664Soft Costs $33,788 $33,788 $67,579 $33,788 $33,788 $67,579 $33,788 $33,788 $67,579 $33,788 $33,788 $33,791 $506,832FF&E $0 $290,000 $0 $0 $290,000 $0 $0 $290,000 $0 $0 $290,000 $0 $1,160,000Development Costs $200,000 $0 $0 $200,000 $0 $0 $200,000 $0 $0 $0 $0 $0 $600,000Land $0 $0 $355,835 $0 $0 $355,835 $0 $0 $355,835 $0 $0 $355,835 $1,423,340Neg. CF $0 $75,000 $675,000 $0 $75,000 $675,000 $0 $75,000 $675,000 $0 $0 $675,000 $2,925,000

Total $1,390,260 $1,555,260 $2,254,886 $1,390,260 $1,555,260 $2,254,886 $1,390,260 $1,555,260 $2,254,886 $1,190,260 $1,480,260 $2,221,098 $20,492,836

2008 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Total Hard Bldg Costs $1,156,472 $1,156,472 $1,156,472 $578,236 $578,236 $578,236 $0 $0 $0 $0 $0 $0 $5,204,124Soft Costs $0 $0 $0 $0 $0 $0 $0 $0 $33,788 $33,788 $33,788 $67,579 $168,943FF&E $0 $290,000 $0 $0 $290,000 $0 $0 $0 $0 $0 $0 $0 $580,000Development Costs $0 $0 $0 $0 $0 $0 $200,000 $0 $0 $200,000 $0 $0 $400,000Land $0 $0 $355,835 $0 $0 $355,835 $0 $0 $0 $0 $0 $0 $711,670Neg. CF $0 $0 $0 $0 $0 $0 $0 $75,000 $0 $0 $75,000 $675,000 $825,000

Total $1,156,472 $1,446,472 $1,512,307 $578,236 $868,236 $934,071 $200,000 $75,000 $33,788 $233,788 $108,788 $742,579 $7,889,737

2009 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Total Hard Bldg Costs $578,236 $578,236 $578,236 $1,156,472 $1,156,472 $1,156,472 $1,156,472 $1,156,472 $1,156,472 $1,156,472 $1,156,472 $1,156,472 $12,142,956Soft Costs $33,788 $33,788 $67,579 $33,788 $33,788 $67,579 $33,788 $33,788 $67,579 $33,788 $33,788 $67,579 $540,620FF&E $0 $0 $0 $0 $290,000 $0 $0 $290,000 $0 $0 $290,000 $0 $870,000Development Costs $200,000 $0 $0 $200,000 $0 $0 $200,000 $0 $0 $200,000 $0 $0 $800,000Land $0 $0 $0 $0 $0 $355,835 $0 $0 $355,835 $0 $0 $355,835 $1,067,505Neg. CF $0 $75,000 $675,000 $0 $75,000 $675,000 $0 $75,000 $675,000 $0 $75,000 $675,000 $3,000,000

Total $812,024 $687,024 $1,320,815 $1,390,260 $1,555,260 $2,254,886 $1,390,260 $1,555,260 $2,254,886 $1,390,260 $1,555,260 $2,254,886 $18,421,081

2010 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Total Hard Bldg Costs $1,156,472 $1,156,472 $1,156,472 $1,156,472 $1,156,472 $1,156,472 $1,156,472 $1,156,472 $1,156,472 $578,236 $578,236 $578,236 $12,142,956Soft Costs $33,788 $33,788 $67,579 $33,788 $33,788 $33,791 $0 $0 $0 $0 $0 $0 $236,522FF&E $0 $290,000 $0 $0 $290,000 $0 $0 $290,000 $0 $0 $290,000 $0 $1,160,000Development Costs $200,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $200,000Land $0 $0 $355,835 $0 $0 $355,835 $0 $0 $355,835 $0 $0 $355,835 $1,423,340Neg. CF $0 $75,000 $675,000 $0 $0 $675,000 $0 $0 $0 $0 $0 $0 $1,425,000

Total $1,390,260 $1,555,260 $2,254,886 $1,190,260 $1,480,260 $2,221,098 $1,156,472 $1,446,472 $1,512,307 $578,236 $868,236 $934,071 $16,587,818

2011 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Total Hard Bldg Costs $0 $0 $0 $0 $0 $0 $578,236 $578,236 $578,236 $1,156,472 $1,156,472 $1,156,472 $5,204,124Soft Costs $0 $0 $33,788 $33,788 $33,788 $67,579 $33,788 $33,788 $67,579 $33,788 $33,788 $67,579 $439,253FF&E $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $290,000 $0 $290,000Development Costs $200,000 $0 $0 $200,000 $0 $0 $200,000 $0 $0 $200,000 $0 $0 $800,000Land $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $355,835 $355,835Neg. CF $0 $75,000 $0 $0 $75,000 $675,000 $0 $75,000 $675,000 $0 $75,000 $675,000 $2,325,000

Total $200,000 $75,000 $33,788 $233,788 $108,788 $742,579 $812,024 $687,024 $1,320,815 $1,390,260 $1,555,260 $2,254,886 $9,414,212

2012 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Total Hard Bldg Costs $1,156,472 $1,156,472 $1,156,472 $1,156,472 $1,156,472 $1,156,472 $1,156,472 $1,156,472 $1,156,472 $1,156,472 $1,156,472 $1,156,472 $13,877,664Soft Costs $33,788 $33,788 $67,579 $33,788 $33,788 $67,579 $33,788 $33,788 $67,579 $33,788 $33,788 $33,791 $506,832FF&E $0 $290,000 $0 $0 $290,000 $0 $0 $290,000 $0 $0 $290,000 $0 $1,160,000Development Costs $200,000 $0 $0 $200,000 $0 $0 $200,000 $0 $0 $0 $0 $0 $600,000Land $0 $0 $355,835 $0 $0 $355,835 $0 $0 $355,835 $0 $0 $355,835 $1,423,340Neg. CF $0 $75,000 $675,000 $0 $75,000 $675,000 $0 $75,000 $675,000 $0 $0 $675,000 $2,925,000

Total $1,390,260 $1,555,260 $2,254,886 $1,390,260 $1,555,260 $2,254,886 $1,390,260 $1,555,260 $2,254,886 $1,190,260 $1,480,260 $2,221,098 $20,492,836

Dep/Amort Categories 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Total

3 Years $3,536,519 $4,340,620 $1,518,946 $3,564,253 $4,031,832 $1,393,943 $4,340,620 $1,861,522 $3,564,253 $4,031,832 $32,184,3407 Years $0 $1,160,000 $870,000 $290,000 $1,160,000 $580,000 $870,000 $1,160,000 $290,000 $1,160,000 $7,540,00039 Years $1,156,472 $13,299,428 $9,830,012 $5,204,124 $13,877,664 $5,204,124 $12,142,956 $12,142,956 $5,204,124 $13,877,664 $91,939,524Non-Deprc/Non-Amort $0 $1,067,505 $1,423,340 $355,835 $1,423,340 $711,670 $1,067,505 $1,423,340 $355,835 $1,423,340 $9,251,710

Total Revenue $4,692,991 $19,867,553 $13,642,298 $9,414,212 $20,492,836 $7,889,737 $18,421,081 $16,587,818 $9,414,212 $20,492,836 $140,915,574

CAPITAL EXPENDITURES, DEPRECIATION AND AMORTIZATION SCHEDULECAP EX TABLE

COMPANY

2003 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec TotalRevenues

Beds at Rate 1 $264,040 $272,090 $272,090 $280,140 $280,140 $315,560 $350,980 $350,980 $350,980 $350,980 $350,980 $383,180 $3,822,140Beds at Rate 2 $68,880 $70,980 $70,980 $73,080 $73,080 $82,320 $91,560 $91,560 $91,560 $91,560 $91,560 $99,960 $997,080Beds at Rate 3 $78,720 $81,120 $81,120 $83,520 $83,520 $94,080 $104,640 $104,640 $104,640 $104,640 $104,640 $114,240 $1,139,520

Total Revenues $411,640 $424,190 $424,190 $436,740 $436,740 $491,960 $547,180 $547,180 $547,180 $547,180 $547,180 $597,380 $5,958,740

Operating CostsCost of Goods Sold $229,712 $236,715 $236,715 $243,718 $243,718 $274,533 $305,348 $305,348 $305,348 $305,348 $305,348 $333,362 $3,325,215Corporate G&A Expenses $43,970 $43,970 $43,970 $43,970 $43,970 $43,970 $66,220 $66,220 $66,220 $68,761 $68,761 $68,761 $668,764Mortgage/Bond Interest $72,037 $74,233 $74,233 $76,430 $76,430 $73,430 $73,430 $73,430 $297,917 $297,917 $297,917 $297,917 $1,785,321CapEx $0 $0 $0 $0 $0 $0 $0 $0 $4,851,364 $2,742,579 $812,024 $687,024 $9,092,991

Total Operating Costs $345,719 $354,918 $354,918 $364,118 $364,118 $391,933 $444,998 $444,998 $5,520,849 $3,414,606 $1,484,051 $1,387,064 $14,872,291

Operating Surplus(Deficit) $65,921 $69,272 $69,272 $72,622 $72,622 $100,027 $102,182 $102,182 -$4,973,669 -$2,867,426 -$936,871 -$789,684 -$8,913,551

Cumulative Surplus(Deficit) $65,921 $135,193 $204,465 $277,087 $349,709 $449,736 $551,917 $654,099 -$4,319,570 -$7,186,996 -$8,123,866 -$8,913,551

2004 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec TotalRevenues

Beds at Rate 1 $364,780 $355,810 $394,680 $454,480 $499,330 $499,330 $499,330 $544,180 $544,180 $544,180 $589,030 $589,030 $5,878,340Beds at Rate 2 $102,480 $99,960 $110,880 $127,680 $140,280 $140,280 $140,280 $152,880 $152,880 $152,880 $165,480 $165,480 $1,651,440Beds at Rate 3 $156,160 $152,320 $168,960 $194,560 $213,760 $213,760 $213,760 $232,960 $232,960 $232,960 $252,160 $252,160 $2,516,480

Total Revenues $623,420 $608,090 $674,520 $776,720 $853,370 $853,370 $853,370 $930,020 $930,020 $930,020 $1,006,670 $1,006,670 $10,046,260

Operating CostsCost of Goods Sold $467,185 $467,185 $467,185 $467,185 $467,185 $467,185 $467,185 $467,185 $467,185 $467,185 $467,185 $467,185 $5,606,215Corporate G&A Expenses $95,333 $95,333 $95,333 $95,333 $95,333 $95,333 $95,333 $95,333 $95,333 $95,333 $95,333 $95,333 $1,144,000Mortgage/Bond Interest $297,917 $297,917 $297,917 $297,917 $297,917 $297,917 $297,917 $297,917 $297,917 $297,917 $297,917 $297,917 $3,575,000CapEx $1,320,815 $1,390,260 $1,555,260 $2,254,886 $1,390,260 $1,555,260 $2,254,886 $1,390,260 $1,555,260 $2,254,886 $1,390,260 $1,555,260 $19,867,553

Total Operating Costs $2,181,250 $2,250,695 $2,415,695 $3,115,321 $2,250,695 $2,415,695 $3,115,321 $2,250,695 $2,415,695 $3,115,321 $2,250,695 $2,415,695 $30,192,768

Operating Surplus(Deficit) -$1,557,830 -$1,642,605 -$1,741,175 -$2,338,601 -$1,397,325 -$1,562,325 -$2,261,951 -$1,320,675 -$1,485,675 -$2,185,301 -$1,244,025 -$1,409,025 -$20,146,508

Cumulative Surplus(Deficit) -$1,557,830 -$3,200,434 -$4,941,609 -$7,280,209 -$8,677,534 -$10,239,858 -$12,501,809 -$13,822,484 -$15,308,158 -$17,493,459 -$18,737,483 -$20,146,508

2005 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec TotalRevenues

Beds at Rate 1 $661,440 $723,840 $723,840 $723,840 $848,640 $848,640 $848,640 $973,440 $973,440 $973,440 $1,098,240 $1,098,240 $10,495,680Beds at Rate 2 $184,440 $201,840 $201,840 $201,840 $236,640 $236,640 $236,640 $271,440 $271,440 $271,440 $306,240 $306,240 $2,926,680Beds at Rate 3 $279,840 $306,240 $306,240 $306,240 $359,040 $359,040 $359,040 $411,840 $411,840 $411,840 $464,640 $464,640 $4,440,480

Total Revenues $1,125,720 $1,231,920 $1,231,920 $1,231,920 $1,444,320 $1,444,320 $1,444,320 $1,656,720 $1,656,720 $1,656,720 $1,869,120 $1,869,120 $17,862,840

Operating CostsCost of Goods Sold $830,682 $830,682 $830,682 $830,682 $830,682 $830,682 $830,682 $830,682 $830,682 $830,682 $830,682 $830,682 $9,968,179Corporate G&A Expenses $116,281 $116,281 $116,281 $116,281 $116,281 $116,281 $116,281 $116,281 $116,281 $116,281 $116,281 $116,281 $1,395,370Mortgage/Bond Interest $297,917 $297,917 $297,917 $297,917 $297,917 $297,917 $297,917 $297,917 $297,917 $297,917 $297,917 $297,917 $3,575,000CapEx $2,254,886 $1,190,260 $1,480,260 $2,221,098 $1,156,472 $1,446,472 $1,512,307 $578,236 $868,236 $934,071 $0 $0 $13,642,298

Total Operating Costs $3,499,765 $2,435,139 $2,725,139 $3,465,977 $2,401,351 $2,691,351 $2,757,186 $1,823,115 $2,113,115 $2,178,950 $1,244,879 $1,244,879 $28,580,847

Operating Surplus(Deficit) -$2,374,045 -$1,203,219 -$1,493,219 -$2,234,057 -$957,031 -$1,247,031 -$1,312,866 -$166,395 -$456,395 -$522,230 $624,241 $624,241 -$10,718,007

Cumulative Surplus(Deficit) -$2,374,045 -$3,577,264 -$5,070,483 -$7,304,540 -$8,261,572 -$9,508,603 -$10,821,469 -$10,987,864 -$11,444,259 -$11,966,489 -$11,342,248 -$10,718,007

Projected Monthly Cash Inflow and Outlays - CORE ALF ONLY - NO INTEREST OR DEVELOPER INCOME

CHARTS of PROJECTED FINANCIAL PERFORMANCECOMPANY

$0

$10,000,000

$20,000,000

$30,000,000

2003 2004 2005 2006 2007

REVENUES vs EARNINGS

Gross Revenues

Pretax Income $0

$50,000,000

$100,000,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

REVENUES vs PRETAX COSTS

Gross Revenues

Net Operating Income

$0

$10,000,000

$20,000,000

$30,000,000

2003 2004 2005 2006 2007

REVENUES

-$1,000,000

$0

$1,000,000

$2,000,000

2003 2004 2005 2006 2007

EARNINGS

$0

$50,000,000

$100,000,000

1 2 3 4 5 6 7 8 9 10

SUMMARY COMPANY REVENUE MIX

Beds at Rate 3 Beds at Rate 2 Beds at Rate 1

Beds at Rate 1 54%

Beds at Rate 2 22%

Beds at Rate 3 24%

REVENUES -- YEAR 5

($500,000) $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

PROJECTED PRICE PER UNIT p/e = 10

Beds at Rate 1

59% Beds at Rate

2 16%

Beds at Rate 3

25%

COMPANY REVENUE MIX - YEAR 2


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