business plan · location to enjoy quality living and recreation. vision statement: to provide...

Business Plan

Vidal Conde 956-240-5900

[email protected]

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Mission Statement: To provide prospective investors with unique revenue

opportunities and provide vacationers a world-class

location to enjoy quality living and recreation.

Vision Statement: To provide exceptional and personalized service,

exceeding expectations and inspiring staff to

greatness that builds a well-known brand those results

in a growing portfolio of future water/beachfront

condominiums and mixed-development projects.

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Table of Contents

1.0 Executive Summary ..................................................................................................... 4

1.1 Objectives ....................................................................................................................................... 5

1.2 Keys to Success .............................................................................................................................. 5

1.3 Investor Return & Financial Overview ....................................................................................... 6

2.0 Company Summary ..................................................................................................... 6

2.1 Company Ownership .................................................................................................................... 7

2.2 Pre-Operating Source and Use of Funds..................................................................................... 7

3.0 Market Needs and Value Proposition ........................................................................ 8

3.1 Development Features .................................................................................................................. 8

4.0 Market Analysis ......................................................................................................... 12

4.1 Market Segmentation .................................................................................................................. 14

4.2 Location Summary ...................................................................................................................... 15

4.3 Competitive Landscape .............................................................................................................. 15

4.4 Industry Summary ...................................................................................................................... 16

5.0 Marketing Strategy/Implementation ....................................................................... 18

5.1 Web Summary ............................................................................................................................. 19

5.2 SWOT Analysis ........................................................................................................................... 20

5.3 Company Milestones ................................................................................................................... 20

6.0 Management Summary ............................................................................................. 21

6.1 Management Gaps ...................................................................................................................... 23

7.0 Financial Summary ................................................................................................... 24

7.1 Revenue Forecast ........................................................................................................................ 24

7.2 Personnel Forecast ...................................................................................................................... 26

7.3 Income Statement ........................................................................................................................ 27

7.4 Statement of Cash Flow .............................................................................................................. 29

7.5 Balance Sheet ............................................................................................................................... 31

7.6 Break-Even Analysis ................................................................................................................... 32

7.7 Best & Worst Case ...................................................................................................................... 33

Appendix A – Year 1 Financials ..................................................................................... 34

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1.0 Executive Summary

Vacation rentals are fast-growing, $25 billion market that are increasingly taking market share

from hotels because of their unique feel and first-class amenities for the price of a standard hotel

room. In Texas, where hotels and other lodging have revenue of over $40 billion, due in large

part to record numbers of tourists, there is strong demand for well-managed hospitality properties

in key locations.

Mirielle Condominiums/ Viva Texas Cruises, Inc. (“the Company”) is a new venture from a

highly experienced executive team that is currently developing a vacation condo property and

mixed-use resort in Aransas Pass, TX to offer a unique lodging option for the region’s booming

tourism market. Mirielle Condominiums will be a 40-unit, luxury Gulf-front condo property for

tourists, business travelers and

recreational visitors to this area.

The property, next to the

Mansion by the Sea wedding

venue as well as Aransas Pass’

dining and world-class

recreation, will be a thoroughly

modern glass-and-concrete

building mixing Miami style

with Texas hospitality.

Mirielle Condominiums are being developed to sell to investors and second-home owners. The

development will have 8 “Presidential Penthouse” units, which are 2,000-SF top-floor three-

bedroom luxury suites that come with all-inclusive amenities and their own boat and boat slip.

There will also be 32 1,040-SF 2-in-1 condos that have a lockout door between a larger

“Maravilla Room” and the “Lake Charles Room” to be rented out for maximum earnings

potential. The Company will manage the rental pool for the owners and will also operate several

on-site revenue-generating amenities.

The site will be surrounded by some of the Coastal Bend region’s most natural and pristine

beaches, with 18 miles of Gulf frontage. The surrounding region gets over 5 million annual

visitors. Mirielle Condominiums will offer these visitors an upscale lodging option with

unmatched amenities. Mirielle Condominiums will have a rooftop pool and outdoor kitchen, as

well as first-floor commercial space to include a fitness center, tanning salon, spa, massage

services, barber shop, coffee shop, restaurant, and cigar bar. Boat slips will have direct access to

the Gulf of Mexico, and will connect to a casino ship, The Pride of Texas.

Owner and CEO Vidal Conde has over 25 years of experience in special events, promotions,

acquisitions, bus transportation and gaming. Vidal's leadership team has over 300 years of

combined experience in development, maritime, casino, theme park and hospitality industries.

This experience, along with local staff, will be leveraged at the new facility to create a thriving

and profitable investment and hospitality business. To commence development, Vidal Conde is

investing land worth $3.125 million and seeking an outside investment totaling $5.5 million.

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1.1 Objectives

❖ Attain funding for the purchase of the Aransas Pass property and to commence

construction of the mixed-use development

❖ Complete needed construction and landscaping in a timely and cost-effective manner

❖ Create a dynamic and growing tourism destination

❖ Establish Mirielle Condominiums as a premier, best-of-class vacation rental and

eventdestination in this area of the Coastal Bend region

❖ Maximize profits through effective and efficient management and operational techniques

❖ Add additional features and units nearby in the coming years and expand the business to

include a growing portfolio and other revenue streams

1.2 Keys to Success

The vision and goals of Mirielle Condominiums will be accomplished by:

❖ Providing a unique atmosphere that expands the vacation experience through nature and

outdoor activities

❖ Offering lodging and rental space that cannot be found anywhere else

❖ Providing superior customer service and hospitality

❖ Ensuring that each guest room is well appointed and there is a friendly and welcoming

ambience throughout the property

❖ Attaining a high level of occupancy through strong online, traditional, and grassroots

marketing initiatives that targets travelers, businesses, and event planners

❖ Maintaining a staff of exceptional professionals

❖ Using a streamlined management structure within the organization to ensure profitable

operations, including installing a central reservation system that maximizes RevPAR

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1.3 Investor Return & Financial Overview

The Investor Return section details the investor(s) initial investment, investment multiple,

investment fifth year value, investor(s) share of the Company, the value of the Company in the

fifth year, and internal rate of return for 3 different cases.

Investment Years Invested Investment Multiple 5th Year Value Company Share

Initial $5,500,000 5 2.0 $11,000,000 45.0%

Total $5,500,000 2.0 $11,000,000 45.0%

5th Year Multiple

Company 6.0

Company IRR

Normal Case 12.5%

Best Case 18.5%

Worst Case 6.0%

Investor Return

5th Year Company Earnings 5th Year Company Value

$4,076,091 $24,456,548

Year 1 Year 2 Year 3 Year 4 Year 5

Gross Revenue $3,758,875 $5,441,875 $7,124,875 $8,176,750 $8,597,500

Gross Profit $3,297,006 $4,762,656 $6,228,306 $7,144,338 $7,510,750

Operating Profit $1,828,806 $2,997,681 $4,129,686 $4,866,515 $5,095,114

Earning Before Interest & Taxes $1,828,806 $2,997,681 $4,129,686 $4,866,515 $5,095,114

Earnings $1,527,004 $2,398,145 $3,303,749 $3,893,212 $4,076,091

Gross Profit Percentage 87.7% 87.5% 87.4% 87.4% 87.4%

Operating Profit Percentage 48.7% 55.1% 58.0% 59.5% 59.3%

EBIT Percentage 48.7% 55.1% 58.0% 59.5% 59.3%

Earnings Percentage 40.6% 44.1% 46.4% 47.6% 47.4%

Net Cash Flow $1,521,290 $2,392,431 $3,298,035 $3,891,784 $4,076,091

Cash Balance $1,677,290 $4,069,721 $7,367,756 $11,259,539 $15,335,631

Financial Overview

2.0 Company Summary

Viva Texas Cruises, Inc. is a Texas C-Corp founded in November 2014. Through owner Vidal

Conde’s Pride of Texas hospitality brand, Mirielle Condominiums will be developed and sold

within the mixed-used retail space in Aransas Pass, Texas to investors. It will manage and

operate all lobby, restaurant, retail and condo revenue. Pride of Texas is a registered Trademark

belonging to Vidal Conde. Mirielle is currently a signature mark on its way to registered

trademark. Parrot Island Redfish Bay LTD is a Texas non-profit in which the condos HOA will

be placed.

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2.1 Company Ownership

Mirielle Condominiums listed under the Viva Texas Cruises, Inc. and Pride of Texas umbrella,

are owned by Vidal Conde.

2.2 Pre-Operating Source and Use of Funds

Expenses

Marketing & Advertising $24,000

Utilities $144,000

Insurance $40,000

Contractors $12,000

Legal/Accounting $12,000

Professional Fees $12,000

Office Supplies $3,600

Dues & Subscriptions $12,000

Auto $12,000

Web Hosting/Internet $14,400

Repair & Maintenance $12,000

Research & Development $12,000

Telephones $24,000

Total Expenses $334,000

Assets

Inventory $10,000

Property $2,500,000

Building $5,000,000

Other Long-Term Assets $0

Total Assets $7,510,000

Total Use of Funds $7,844,000

Pre-Operating Use of Funds

Investment

Ow ner $2,500,000

Investor $5,500,000

Total Investment $8,000,000

Debt

Current Debt $0

Long-Term Debt $0

Total Debt $0

Total Source of Funds $8,000,000

Pre-Operating Source of Funds

Total Source of Funds $8,000,000

Total Use of Funds $7,844,000

Month 1 Starting Cash $156,000

Total Source & Use of Funds

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

Investment Debt Expenses Assets Cash

Total Source & Use of Funds

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3.0 Market Needs and Value Proposition

Mirielle Condominiums will exist to meet multiple market needs in the Port Aransas/Mustang

Island/Corpus Christi area. This area is an outdoor paradise and draws visitors from all over.

More and more, consumers want a unique lodging experience. Short-term vacation rentals are a

nearly $25 billion a year market, with the evolution of sites including VRBO, AirBnb and others

fueling a strong and growing market.1

The value proposition offered at vacation rentals and B&B-type units compared to a traditional

hotel is staying in the comfort and privacy of a home-like unit. Travelers prefer the value and

convenience of being in a great location without the hassles of typical hotel chains. Often for

less than the cost of a hotel, they can rent a unique unit with more space, better surroundings, and

proximity to the exact kinds of outdoor adventures or recreation they seek.

Aransas Passdraws millions of people annually yet has few true world-class lodging options and

amenities to satisfy today’s

travelers. Mirielle Condominiums

is being created to fill a market

need and will be the only

destination of its kind here.

Lodging and commercial space is

needed, in a spectacular location

with a true luxury experience. It

will draw luxury and leisure

travelers alike, providing a much

better alternative to hotels,

standard vacation homes – offering

the only accommodation of this type in

addition to new retail space.

3.1 Development Features

Mirielle Condominiums’ location, with

Gulf-front views next to the Mansion by

the Sea wedding venue, will offer a rare

and unique opportunity for those seeking

the quietness and convenience of Redfish

Bay or for the investor who wishes to

obtain prime waterfront real estate.

Mirielle Condominiums will be very

modern and feature state-of-the-art

1PhocusWright. “U.S. Vacation Rentals: A Market Reinvented.” http://www.phocuswright.com/Special-

Projects/2013/U-S-Vacation-Rentals-2009-2014-A-Market-Reinvented#.VWLO_tOqqko

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technologies. The units will be constructed of concrete and glass, with contemporary design that

exudes Miami style combined with South Texas hospitality. Residents will have direct and

speedy access to the Gulf of Mexico or enjoy watching the dolphins as they swim Redfish Bay.

The Mirielle Condominiums will supplement existing vacation rentals for leisure and business

travelers with incomparable, upscale condo units, complete with first-class accommodations,

including kitchens in all rooms, room service, flat screen televisions, WiFi, on-site parking, and

more.

The Mirielle Condominiums will also stand out with a higher level of service, luxurious

beachfront rooms, contemporary decor, furnishings and fixtures, and beautiful lighting systems.

The Company will pride itself on customer satisfaction, with a courteous and knowledgeable

staff of experienced individuals

dedicated to providing exceptional

customer service, as well as a

memorable experience that adds to

guests’ complete relaxation and

privacy, developing an outstanding

reputation and ensuring repeat

business.

The initial development will have

forty (40) units with 24/7 room

service available and numerous

world-class amenities that make

Mirielle Condominiums the most sought-after residence,

second home or vacation rental spot in the region. Only

minutes from surrounding schools, grocery stores and local

restaurants, the Mirielle Condominiums will offer

prospective residents the opportunity to secure

preconstruction condos, including:

Presidential Penthouses – 8 units, at 2,000 sq. ft. each

❖ Three bedrooms

❖ Boat slip and boat included

❖ Personal transportation

❖ All-inclusive amenities

❖ 24/7 room service

❖ Daily housekeeping

Mirielle Condominiums – 32 units, at 1,040 sq. ft. each

❖ 2 condos in 1: The “Maravilla” Room and “Lake Charles” Room

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o The Maravilla Room (26' x 26', 676 sq. ft.): All the amenities required in a

residence (stove, microwave, granite counter tops, energy-efficient appliances,

oven, stacked washer and dryer, dishwashers) and can be rented out as a

'standalone' condo or used as your personal vacation residence.

o The Lake Charles Room (14' x 26', 364 sq. ft.): Master bedroom with spa and all

your basic amenities that can be rented out as you reside at the Maravilla room; or

rent them BOTH out for maximum earnings potential, your 2 condos in ONE!

❖ Includes lockout door between rooms for rental potential

On-site amenities will include:

Roof top (Outdoor, 9,200 sq. ft.):

❖ Pool & Bar Combination, sports court, outdoor theatre/modeling runway stage, outdoor

tanning, 2 private outdoor kitchen/bar areas

Lobby (19,200 sq. ft.):

❖ Fitness Center/Personal trainer

❖ Showers

❖ Tanning Salon/Massage/Spa

❖ Barber shop

❖ Coffee

❖ Lounge area

❖ Restaurant (Breakfast, Lunch, Dinner)

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❖ Cigar Bar, Glass Wine Cellar

❖ Outdoor dining deck

❖ Boat slips/boats with direct access to the Gulf of Mexico

Added Attraction: Casino Ship (Upon

Construction of Condominiums and

licensing) Business Plan Upon Request

❖ 2 restaurant areas, 5 bars,

nightclub, tanning area, gift shop,

special events area, over 500 slot

machines, 26 casino table games.

❖ Residents receive additional

casino perks and the Elite

Platinum Card, which has

numerous exclusive perks.

HOA fees will cover the following:

Windstorm, Exterior building

maintenance except for windows and

doors, grounds and landscaping upkeep

and maintenance, swimming pool

pavilion and maintenance, monthly contribution to maintenance and upkeep personnel (dollar

amount to be determined), Water, electricity, cable.

Owner’s responsibilities: Homeowner’s contents and liability insurance. For more info, please

view Mirielle HOA Bylaws and Declarations.

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4.0 Market Analysis

Travel and tourism in the U.S. accounts for over $1 trillion in annual spending when accounting

for air, hotel, and other related segments. Market research firm IBISWorld states that, “Tourism

will particularly benefit from the economy improving, unemployment rates declining and

consumer spending increasing. The number of inbound visits to the United States will rise

significantly… Major industrial, financial and commercial centers for business and

conference/convention travelers will also attract business visitors.”2

Revenue at hotels and motels maintained a compound annual growth rate of 3.4% from 2014 to

2019, according to market research firm IBISWorld, reaching more than $200 billion. “While

the Hotels and Motels industry is highly susceptible to changes in the global economic

environment, the industry has experienced robust growth over the five years to 2019,” states

IBISWorld. “Thanks to increases in travel spending, corporate profit and consumer spending,

industry revenue has grown every year since 2014, as the economy improved and domestic and

international travel rates increased. As a result, the Hotels and Motels industry has outperformed

the broader economy over the past five years, driven by a combination of high demand from

leisure and business travelers.” Revenue by market segment is outlined below. (Note: Mirielle

Condominiums is in the largest market segment, as the 2-in-1 condos account for over 80 units.)

This chart is followed by growth projections showing that by 2024 revenue is estimated to reach

nearly $225 billion.3

2 IBISWorld. “Tourism in the U.S.” Jan. 2020. http://www.ibisworld.com/industry/default.aspx?indid=2002 3 IBISWorld. “Hotels & Motels in the U.S.” Dec. 2019.

https://www.ibisworld.com/industry/default.aspx?indid=1661

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In a recent PricewaterhouseCoopers (PwC) hospitality market report, it states that U.S. lodging

will maintain very high occupancy and RevPAR (revenue per available room) in 2019 and

beyond. The chart below shows projected room demand and other statistics through 2020.4

In Texas, as shown below, hotels and lodging are a $41 billion market, according to the

American Hotel & Lodging Association (AHLA). 5

4 PwC. “Hospitality Directions U.S.: Our updated lodging outlook.” May 2019.

https://www.pwc.com/us/en/industries/hospitality-leisure/pwc-hospitality-directions-us-may-2019.pdf 5 AHLA. “Texas Hotel Industry by the Numbers.”

https://ahla.morningconsultintelligence.com/reports/states/texas.pdf

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Within these markets, the U.S. short-term stay market is estimated at $14 billion (and $60 billion

globally).6 The larger vacation-rental market is estimated at nearly $25 billion, according to a

study from travel market research firm PhoCusWright. The vacation-rental market is equivalent

to around 15% of the hotel market in the U.S., and it represents 7% of all U.S. travel spending.

Online sales in vacation rentals have helped surge the market forward. Online sales accounted

for approximately 12% of rentals in 2007 and grew over 30% in 2017.7

According to PhoCusWright, “Strong online traffic growth, bolstered by successful new entrants

to the category, have shifted vacation rental from an uncharted ‘alternative lodging’ segment to a

major online marketplace… It is an increasingly mature online category that is competing

directly with hotels for the leisure traveler.” Vacation rentals account for more than 333 million

available unit nights in the U.S. PhoCusWright states that approximately 10% of all U.S. adults

and 20% of all online travelers have booked a vacation rental.8

4.1 Market Segmentation

The target market for Mirielle Condominiums primarily includes regular hotel and vacation

renters. According to a report from travel-research firm Ypartnership, 49% of leisure

travelers are interested in staying in a vacation rental rather than a traditional hotel or resort.9

A luxury travel market report from Allied Market Research notes that, “While baby boomers

aged 51 to 69 lead the pack, Gen X follows but is more known for preferring to travel with

multiple generations of the family such as kids, parents and grandparents.”10 This is especially

true among the wealthiest segment of the population. A survey by Resonance, a leading

consumer research firm, found that affluent Americans are spending stratospheric sums on

leisure travel. The wealthiest 5% of U.S. households, the survey found, take an average of 14.3

trips per year (compared to just 4.8 by U.S. travelers in general) and spend an average of $3,115

per vacation. This adds up to a staggering $390 billion spent annually on leisure travel alone.11

However, Millennials are the next big market. As an article in Forbes notes, “Many millennials

today are entering their peak earning years and gaining more affluence at unprecedented rates.

This new generation is changing the face of affluence forever… nearly one quarter of U.S. adults

making an annual household income of more than $500,000 are millennials. Millennials are a

generation that is completely redefining what adventure means and are looking at the world

through a more global perspective.”12

6San Jose Mercury News. “Palo Alto startup aims to overhaul rental market.”

http://www.mercurynews.com/business/ci_28206632/palo-alto-startup-homesuite-aims-overhaul-rental-market 7 Forbes. “Expedia adds HomeAway’s vacation rentals to its product portfolio.”

http://www.phocuswright.com/research_updates/us-vacation-rental-market-infographic 8PhoCusWright. “When $24 billion just isn’t enough.” http://www.phocuswright.com/library/fyi/554 9 Vacation Rental Managers Association. “Vacation Rentals & Current Travel Trends.”

http://www.vrma.com/trends 10 Allied Market Research. “Luxury Travel Market.” https://www.alliedmarketresearch.com/luxury-travel-market 11 Resonance. “U.S. Luxury Travel Report.” http://resonanceco.com/reports/new/ 12 Forbes. “Luxury travel trends shift as affluent Millennials act on their aspirations.”.

https://www.forbes.com/sites/jefffromm/2016/03/29/luxury-travel-trends-shift-as-affluent-millennials-act-on-their-

aspirations/#1285968f3402

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4.2 Location Summary

Aransas Pass and Port Aransas areas get over 5 million visitors a year, and there is a growing

full-time population base in a thriving coastal community.13 Port Aransas has over 5 miles of

shorefront on the 18-mile-long Mustang Island.

Mirielle Condominiums will be

located within close proximity to

numerous major employers,

transportation corridors, fine dining,

entertainment venues, shopping and

lifestyle amenities.

The Mirielle Condominiums will

also be located less than 10 miles

from the former Schlitterbahn, a

major leisure attraction, and in a

region with over 1 million overnight

annual visitors throughout the

Coastal Bend area.

The location, shown on the map with

green arrow, will also benefit growing developments within a 15-mile radius, including Cheniere

Energy Inc. (30,000 jobs), an Exxon plant (11,000 jobs), and the Tianjin Pipe Company creating

2,000 jobs and a $2.7 billion boost to the local Coastal Bend South Texas economy.

4.3 Competitive Landscape

Aransas Pass is a main artery leading to Port Aransas,Texas thus allowing full visibility and

accessibility to the Mirielle Condominiums. There are several standard hotels in the area, as well

as many condos. The Mayan Princess Condominiums, the Port Royal Ocean Resort, Balinese

Wellness Spa, Sea Isle Village, Island Retreat, Coral Cay Condominiums, El Cortez Villas, La

Mirage Condominiums, and many others as well as cottages, vacation homes and “glamping”

options.

However, despite the presence of these and others, as well as AirBnb properties, Mirielle

Condominiums will be a unique property and add to the desirability of vacationing in Aransas

Pass and Port Aransas, with luxury suites and amenities.

This waterfront project will be a unique opportunity for local investors and residents. There are

currently no waterfront properties that offer Miami-style condominiums consisting of concrete

and glass with contemporary architecture.

13 Port Aransas Chamber. https://portaransas.org/chamber/about/

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4.4 Industry Summary

The Company will operate in this distinct industry: New Multifamily Housing Construction

(NAICS 236116).14

New Multifamily Housing Construction

This U.S. industry comprises general contractor establishments responsible for the construction

of new multifamily residential housing units (e.g., high-rise, garden, town house apartments, and

condominiums where each unit is not separated from its neighbors by a ground-to-roof wall).

Multifamily design-build firms and multifamily housing construction management firms acting

as general contractors are included in this industry.

Establishments Total Sales Annual Payroll Paid Employees

4,370 $16,724,310,000 $1,717,075,000 43,726

$39,269 $382,480

Employees per Establishment Payroll as a Percent of Sales

USA New Multifamily Housing Construction

Sales per Establishment Payroll per Establishment

$3,827,073 $392,923

10.0 10.3%

Annual Payroll per Employee Sales Per Employee

Establishments Total Sales Annual Payroll Paid Employees

234 $907,432,000 $94,468,000 2,192

$3,877,915 $403,709

Texas New Multifamily Housing Construction

Sales per Establishment Payroll per Establishment

Annual Payroll per Employee Sales Per Employee

9.4 10.4%

Employees per Establishment Payroll as a Percent of Sales

$43,097 $413,974

14 U.S. Census Bureau. “2017 NAICS.” https://www.census.gov/cgi-bin/sssd/naics/naicsrch?chart=2017

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The following maps show pertinent information on trends and revenue history for the industry

based on geographic location. The charts illustrate which areas of the country spend more per

capita and in total within the industry.15

The map below shows sales ($) per capita.

The map below shows sales in millions $.

15

Census.gov

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5.0 Marketing Strategy/Implementation

Mirielle Condominiums will be positioned in the market as a new and exciting condo and

vacation rental investment opportunity. Mirielle Condominiums will have a website and

Facebook site, etc., and these will act as the public face for when visitors are searching in the

Port Aransas/Greater Corpus Christi area. The property will also be linked on local tourism sites,

and the Company will also look toward building a strong reputation on sites like TripAdvisor

and Yelp, which can then help expand its marketing through positive word-of-mouth from

previous guests. The Company will strive to make Mirielle Condominiums a destination of

choice for visitors to the area, especially people vising tourist sites and the area’s beaches.

Mirielle Condominiums will also utilize Expedia, Booking.com, etc. as sales channels, in

addition to driving brand awareness through traditional marketing channels such attending

industry trade shows, direct mail to tourism departments, conference coordinators, and wedding

planners, etc., as well as magazine and newspaper advertising. The Mirielle Condominiums

management team will also produce and distribute printed literature for key locations around the

region, such as tourist booths, airports, and other places where out-of-town visitors convene. In

addition, the following methods will be used:

Publicity: Mirielle Condominiums will create press releases sent to a variety of media outlets,

including newspapers, magazines, and websites, and other media that cover the Port

Aransas/Mustang Island area and into the Corpus Christi metro area. They will outline the

property and its features, especially the brand-new rooms, investment opportunity and excellent

view and Gulf-front location. The property will also be promoted to local, regional, and state

tourism marketing bureaus.

Traditional Advertising: This will also occur, when needed and in the long term for branding

purposes, in various publications.

Market visibility: Mirielle Condominiums will join business-development groups, rotary

associations, and chambers of commerce, etc., as well as participate in events and send

marketing materials to any group that includes a large and influential number of people. This

can lead to continual referrals for any out-of-town visitors that need lodging.

Internet marketing: Mirielle Condominiums will leverage a strong internet presence to achieve

a high level of occupancy, including:

❖ SEO: A robust search engine optimization (SEO) program is important because condos,

vacation homes, B&Bs, hotels and all types of lodging are typically searched for online

first for people going on vacation or traveling through an area. When someone searches

for “Aransas Pass hotels,” “lodging in Aransas Pass” or similar terms, a link to Mirielle

Condominiums’ website will ideally appear. The website will feature many keywords

and be promoted via social media to enhance SEO. A good rating on sites like Yelp also

helps to get high organic placement when people use Google or other search engines.

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❖ SMO: Mirielle Condominiums will be actively promoted on its Facebook and Instagram

sites, etc., with content created and posted to all accounts. This also helps greatly with

SEO when people are searching online for hotels in a specific geography.

❖ Hotel aggregators: The above-mentioned sites and others such as Priceline and

Hotels.com will be used to drive traffic.

Traditional marketing: Mirielle Condominiums will take initiative in driving sales in the local

market, including but not limited to:

❖ Spot Cable: Buying spots that air in feeder markets such as San Antonio, Houston,

Austin and Dallas and locally in off-prime time slots gain excellent exposure for a

fraction of broadcast pricing.

❖ Community Newspaper Groups: This is a cost-effective way of placing ads that will

reach consumers in cities all across the target demo for Mirielle Condominiums.

❖ Screenvision: The Company can advertise with on-screen promo spots that reach movie

patrons in the region, which will help to greatly increase traffic to the condos, especially

for referrals for weddings, conferences, and other events.

Outdoor marketing: All signage will be prominently placed for maximum visibility to both

foot and vehicular traffic. Billboards will potentially be used as well.

5.1 Web Summary

Mirielle Condominiums created a website www.mirielleunits.com for promoting the investment

opportunity, rental units and features of the property. It will also include features such as

calendars of space availability, payment portal, and interactive previews of all units.

The website will frequently be updated and monitored to encourage a high return rate. The site

will be professionally designed and maintained, presenting a dynamic face for Mirielle

Condominiums.

http://www.mirielleunits.com/

20

5.2 SWOT Analysis

The following is a summary of the Company’s strengths, weaknesses, opportunities, and threats.

Internal

Factors

External

Factors

Positive Negative

Establishing relationships with local tourist

getting record visitors

There is a strong demand for hotel

Texas/Coastal Bend region is

properties in the region

Capital infusion needed to build out property

tourism/visitor sites

Threats

though none like Mirielle

lobby, condo lease, restaurant/bar sales

Newly built property will be

debt and create positive cash flow stream via

among the best in the region

There are many lodging options in the area,

Opportunities

Ability to sell condo units to pay off construction

sites/conference coordinators, etc.

generators on the property

Adding additional space/revenue

Strengths WeaknessesAttractive real estate near popular

Owners/managers with strong

Proximity to several major

beaches and gorgeous nature

An unknown brand with no current operations

background in the industry

5.3 Company Milestones

Milestones for Mirielle will include:

❖ Breaking ground and building structures in a timely manner

❖ Landscaping the grounds and adding amenities

❖ Launching website:www.mirielleunits.com

❖ Implementing management and hiring new staff

❖ Becoming a preferred spot for vacationers, business travelers, convention-goers, nature

park visitors, etc.

❖ Becoming a wedding/special event lodging destination

❖ Portfolio expansion

21

6.0 Management Summary

Vidal Conde CEO/ Pride of Texas/ Mirielle Condominium - Founder/ Developer

Vidal Conde, who is a former Professional Bronc and Bullrider,

has over 25 years of experience in special events, promotions,

acquisitions, bus transportation and real estate. Vidal's leadership

role assures that short term/long term business plan phases and

objectives move in a forward motion as planned. His latest venture

allowed him to manage and lead over 200 employees until the

phase of acquisition. He has composed a real estatecore team

comprising over 300 years of combined experience in the

hospitality and development industry. During the development

phases of the project, he will work together with thecore team to

assure successful investor relations and customer/employee

satisfaction. Vidal oversees daily operations, meets with upper

management and directly manages all aspects of this project. His

leadership and delegating skills will propel the brand “Pride of

Texas/Mirielle” from a Phase I into a Phase II which will include a casino ship, mixed

development and boardwalk.

Raul Torres, CFO, CPA, Financial Consultant

Raul Torres, CPA is the owner of Raul Torres, CPA, a full-

service accounting and financial services firm.Raul, who has a

bachelor’s in Business Administration from Corpus Christi

State University and an MBA from Texas A&M University-

Corpus Christi, operated a public accounting firm since

1993.In addition to being a licensed CPA, he is also a

President of Freedom Tax Services, Inc., a Liberty Tax Service

franchisee, and a Registered Representative and Registered

Financial Consultant.

Raul has served in many capacities as a member of his local

community. He previously served on the Loan Review board and the Traffic Advisory Board for

the City of Corpus Christi. He was active for over 20 years in local youth sports programs and

involved many years with his children's high school band booster clubs. He served as the

Chairman of the Nueces County Republican National Hispanic Assembly and has been a

candidate for several local and statewide offices during the past 10 years with the Republican

Party. In 2010 he was elected as a Texas State Representative for District 33 and served from

2011 through 2013.

Raul is a member of the Texas Society of Certified Public Accountants, the International

Association of Registered Financial Consultants, Inc, the American Society of Tax Problem

Solvers, and the National Society of Tax Professionals.

22

Alex R. Hernandez Jr., Attorney at Law

Alex R. Hernandez Jr. represents corporations, partnerships, joint

ventures, developers, professional organizations, and individual

investors in residential development and commercial real estate

matters. A Corpus Christi real estate lawyer,

Alex represents clients in real estate matters of all types including

residential and commercial real estate matters, litigation and

transactions.Disclaimer: Mr. Hernandez is not an investor, owner nor

affiliate and will serve strictly as counsel on the project.

Mirielle Morales, General Manager, Branding, Apparel Design and

Merchandising Specialist

Mirielle currently manages a team of 50 individuals and brings over 15

years of experience in the design and marketing merchandise. She will

organize all of the Pride of Texas souvenir merchandising and assist in

the online and on-site selling of promotional products. Her

management skills will play an important role in organizing quality

designs and sales. She will work closely with social media group and

promotions department.

Arne Shehadi, VP, Hospitality, Casino, Maritime Operations

Arne brings over 30 years of experience in the hospitality casino cruise gaming, maritime & fleet

operations and in shipping logistics experience to the team. He opened 5 new port locations

within Florida and South Carolina, directed and supervised all levels of fleet ship operation

including USCG and Class Certification, new design build, refurbishment

and vessel conversions. He facilitated and completed numerous dry-

dock inspections and managed and directed all on board gaming

operations for 5 Casino Day Cruise ships. As senior V.P. Resorts

World Bimini, SuperFast, Arne was responsible for overall Marine

and Port operations, provided oversight of all passengers, crew and

immigration requirements interacting and maintaining relations with

all local USCG, CBP and Port Authorities, reviewed and approved

all ship purchasing and responsible for all operating budgets. He

served as General Manager of Palm Beach Princess Casino Line, and

Executive Vice President of Sun Cruz Casinos/ Oceans Casino

Cruises. Managing casinos with over 3,000 slots and 150 table

games, no project is too challenging for Mr. Shehadi and his Team.

23

Rick Turnquist, Master Chef/ Design Concepts & Culinary Consultant

Rick Turnquist has over 30 years of experience in many facets of the culinary, restaurant and

casino industry. One of the original founders of Rainforest Cafe's, Rick will spearhead new age

concepts to Mirielle Condominiums land-based hotels and Casino Ship. After his tenure with

Rainforest Cafe, he was part of exciting concepts including B.B. Kings and Isaac Hayes’ night

club. Rick will work exclusively with Mr. Conde as a creative culinary consultant. Rick truly

believes that registered trademark name “The Pride of Texas” is a home run in the making.

6.1 Management Gaps

Mirielle Condominiums will hire well-experienced managers and a management team who have

hands-on experience in the field of hospitality and running successful coffee

shop/bar/restaurant/leisure businesses.

24

7.0 Financial Summary

7.1 Revenue Forecast. The Revenue Forecast section details the revenue that

the Company projects to receive. This section also details the direct costs.


Units

Beverages 31,025 44,730 57,886 65,350 67,441

Room Rentals Condo 6,205 8,946 11,577 13,070 13,488

Room Rental Suite 6,205 8,946 11,577 13,070 13,488

Food Plate 15,513 22,365 28,943 32,675 33,720

Merchandise 850 1,225 1,586 1,790 1,848

Pontoon Boat Lease 365 365 365 365 365

Unit Price

Beverages $10.00 $10.20 $10.40 $10.61 $10.82

Room Rentals Condo $300.00 $306.00 $312.12 $318.36 $324.73

Room Rental Suite $200.00 $204.00 $208.08 $212.24 $216.49

Food Plate $10.00 $10.20 $10.40 $10.61 $10.82

Merchandise $10.00 $10.20 $10.40 $10.61 $10.82

Pontoon Boat Lease $500.00 $500.00 $500.00 $500.00 $500.00

Revenue

Beverages $310,250 $456,250 $602,250 $693,500 $730,000

Room Rentals Condo $1,861,500 $2,737,500 $3,613,500 $4,161,000 $4,380,000

Room Rental Suite $1,241,000 $1,825,000 $2,409,000 $2,774,000 $2,920,000

Food Plate $155,125 $228,125 $301,125 $346,750 $365,000

Merchandise $8,500 $12,500 $16,500 $19,000 $20,000

Pontoon Boat Lease $182,500 $182,500 $182,500 $182,500 $182,500

Gross Revenue $3,758,875 $5,441,875 $7,124,875 $8,176,750 $8,597,500

Unit Cost

Beverages $3.00 $3.06 $3.12 $3.18 $3.25

Room Rentals Condo $30.00 $30.60 $31.21 $31.84 $32.47

Room Rental Suite $20.00 $20.40 $20.81 $21.22 $21.65

Food Plate $3.50 $3.57 $3.64 $3.71 $3.79

Merchandise $5.00 $5.10 $5.20 $5.31 $5.41

Pontoon Boat Lease $0.00 $0.00 $0.00 $0.00 $0.00

Direct Costs

Beverages $93,075 $136,875 $180,675 $208,050 $219,000

Room Rentals Condo $186,150 $273,750 $361,350 $416,100 $438,000

Room Rental Suite $124,100 $182,500 $240,900 $277,400 $292,000

Food Plate $54,294 $79,844 $105,394 $121,363 $127,750

Merchandise $4,250 $6,250 $8,250 $9,500 $10,000

Pontoon Boat Lease $0 $0 $0 $0 $0

Direct Cost of Revenue $461,869 $679,219 $896,569 $1,032,413 $1,086,750

Yearly Revenue

25

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000


Yearly Revenue ProjectionsPontoon BoatLease

Merchandise

Food Plate

Room Rental Suite

Room RentalsCondo

Beverages

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

Month

1

Month

2

Month

3

Month

4

Month

5

Month

6

Month

7

Month

8

Month

9

Month

10

Month

11

Month

12

Year 1 Revenue Projections

Pontoon BoatLease

Merchandise

Food Plate

Room Rental Suite

Room RentalsCondo

Beverages

26

7.2 Personnel Forecast

The Personnel section breaks down the payroll expense line on the Income Statement. It

provides total headcount, average salary per category and total pay per category.


Headcount

Security 3 4 5 5 5

Housekeeping 8 10 12 13 13

Maintenance 2 2 3 3 3

Bartenders 4 5 5 6 6

Waitresses 5 6 7 7 8

Cooks 3 4 5 5 5

Managers 5 5 5 5 5

Total Headcount 30 36 42 44 45

Compensation

Security $25,000 $26,250 $27,563 $28,941 $30,388

Housekeeping $25,920 $27,216 $28,577 $30,006 $31,506

Maintenance $25,000 $26,250 $27,563 $28,941 $30,388

Bartenders $10,000 $10,200 $10,404 $10,612 $10,824

Waitresses $8,000 $8,160 $8,323 $8,490 $8,659

Cooks $40,000 $42,000 $44,100 $46,305 $48,620

Managers $75,000 $81,000 $87,480 $94,478 $102,037

Payroll

Security $75,000 $105,000 $137,813 $144,703 $151,938

Housekeeping $207,360 $272,160 $342,922 $390,073 $409,577

Maintenance $50,000 $52,500 $82,688 $86,822 $91,163

Bartenders $40,000 $51,000 $52,020 $63,672 $64,946

Waitresses $40,000 $48,960 $58,262 $59,428 $69,276

Cooks $120,000 $168,000 $220,500 $231,525 $243,101

Managers $375,000 $405,000 $437,400 $472,392 $510,183

Total Payroll $907,360 $1,102,620 $1,331,604 $1,448,615 $1,540,184

Yearly Personnel

Note: HOA dues will cover most of the above expenses, listed

under the existing nonprofit Parrot Island Redfish Bay, LTD.,

a Texas Non-Profit Corporation

27

7.3 Income Statement

The Income Statement is also known as a Profit & Loss Statement. This table breaks down

Revenue, Cost of Revenue, Operating Expenses, Depreciation, Interest, Taxes, and bottom line

Earnings for the first five years.


Gross Revenue $3,758,875 $5,441,875 $7,124,875 $8,176,750 $8,597,500

Direct Cost of Revenue $461,869 $679,219 $896,569 $1,032,413 $1,086,750

Other Direct Costs $0 $0 $0 $0 $0

Total Cost of Revenue $461,869 $679,219 $896,569 $1,032,413 $1,086,750

Gross Profit $3,297,006 $4,762,656 $6,228,306 $7,144,338 $7,510,750


Operating Expenses

Marketing & Advertising $24,000 $25,200 $26,460 $27,783 $29,172

Utilities $144,000 $187,200 $224,640 $247,104 $259,459

Insurance $40,000 $42,000 $44,100 $46,305 $48,620

Contractors $12,000 $12,600 $13,230 $13,892 $14,586

Legal/Accounting $12,000 $12,600 $13,230 $13,892 $14,586

Professional Fees $12,000 $12,600 $13,230 $13,892 $14,586

Office Supplies $3,600 $3,780 $3,969 $4,167 $4,376

Dues & Subscriptions $12,000 $12,600 $13,230 $13,892 $14,586

Auto $12,000 $12,600 $13,230 $13,892 $14,586

Web Hosting/Internet $14,400 $15,120 $15,876 $16,670 $17,503

Repair & Maintenance $12,000 $12,600 $13,230 $13,892 $14,586

Research & Development $12,000 $12,600 $13,230 $13,892 $14,586

Telephones $24,000 $25,200 $26,460 $27,783 $29,172

Total Payroll $907,360 $1,102,620 $1,331,604 $1,448,615 $1,540,184

Payroll Taxes $136,104 $165,393 $199,741 $217,292 $231,028

Payroll Benefits $90,736 $110,262 $133,160 $144,862 $154,018

Total Operating Expenses $1,468,200 $1,764,975 $2,098,620 $2,277,822 $2,415,636



Depreciation $0 $0 $0 $0 $0


EBIT Percentage 48.7% 55.1% 58.0% 59.5% 59.3%

Interest Expense $0 $0 $0 $0 $0

Taxes Accrued $301,802 $599,536 $825,937 $973,303 $1,019,023

Earnings $1,527,004 $2,398,145 $3,303,749 $3,893,212 $4,076,091


Yearly Income Statement

28

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000


Yearly Income Statement

Gross Revenue

Gross Profit

Operating Profit

Earning BeforeInterest & Taxes

Earnings

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

Month

1

Month

2

Month

3

Month

4

Month

5

Month

6

Month

7

Month

8

Month

9

Month

10

Month

11

Month

12

Year 1 Income Statement

Gross Revenue

Gross Profit

Operating Profit

Earning BeforeInterest & Taxes

Earnings

29

7.4 Statement of Cash Flow


Operating Activities

Cash Received

Gross Revenue $3,758,875 $5,441,875 $7,124,875 $8,176,750 $8,597,500

Total Cash Received $3,758,875 $5,441,875 $7,124,875 $8,176,750 $8,597,500

Cash Used

Cost of Revenue $461,869 $679,219 $896,569 $1,032,413 $1,086,750

Payroll/Taxes/Benefits $1,134,200 $1,378,275 $1,664,505 $1,810,769 $1,925,231

Other Operating Expenses $334,000 $386,700 $434,115 $467,053 $490,405

Additional Inventory $5,714 $5,714 $5,714 $1,429 $0


Taxes Accrued $301,802 $599,536 $825,937 $973,303 $1,019,023

Total Cash Used $2,237,585 $3,049,444 $3,826,840 $4,284,966 $4,521,409

Net Cash From/(Used By) Operating $1,521,290 $2,392,431 $3,298,035 $3,891,784 $4,076,091

Investing Activities

Cash Received

Proceeds from Property/Land $0 $0 $0 $0 $0

Proceeds from Equipment $0 $0 $0 $0 $0

Total Cash Received $0 $0 $0 $0 $0

Cash Used

Purchase of Property/Land $0 $0 $0 $0 $0

Purchase of Equipment $0 $0 $0 $0 $0

Total Cash Used $0 $0 $0 $0 $0

Net Cash From/(Used By) Investing $0 $0 $0 $0 $0

Financing Activities

Cash Received

Proceeds from Investors $0 $0 $0 $0 $0

Proceeds from Long-Term Debt $0 $0 $0 $0 $0

Total Cash Received $0 $0 $0 $0 $0

Cash Used

Dividends Paid $0 $0 $0 $0 $0

Repayment of Long-Term Debt $0 $0 $0 $0 $0

Total Cash Used $0 $0 $0 $0 $0

Net Cash From/(Used By) Financing $0 $0 $0 $0 $0

Net Cash Flow $1,521,290 $2,392,431 $3,298,035 $3,891,784 $4,076,091

Cash Balance $1,677,290 $4,069,721 $7,367,756 $11,259,539 $15,335,631

Yearly Statement of Cash Flow

30

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000Q

1 Y

1

Q2 Y

1

Q3 Y

1

Q4 Y

1

Q1 Y

2

Q2 Y

2

Q3 Y

2

Q4 Y

2

Q1 Y

3

Q2 Y

3

Q3 Y

3

Q4 Y

3

Q1 Y

4

Q2 Y

4

Q3 Y

4

Q4 Y

4

Q1 Y

5

Q2 Y

5

Q3 Y

5

Q4 Y

5

Quarterly Statement of Cash Flow

Net Cash Flow Cash Balance

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000

Month

1

Month

2

Month

3

Month

4

Month

5

Month

6

Month

7

Month

8

Month

9

Month

10

Month

11

Month

12

Year 1 Statement of Cash Flow

Net Cash Flow Cash Balance

31

7.5 Balance Sheet


Assets

Current Assets

Cash $1,677,290 $4,069,721 $7,367,756 $11,259,539 $15,335,631

Inventory $15,714 $21,429 $27,143 $28,571 $28,571

Other Current Assets $0 $0 $0 $0 $0

Total Current Assets $1,693,004 $4,091,149 $7,394,898 $11,288,111 $15,364,202

Long-Term Assets

Property $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000

Building $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000

Other Long-Term Assets $0 $0 $0 $0 $0

Accumulated Depreciation $0 $0 $0 $0 $0

Total Long-Term Assets $7,500,000 $7,500,000 $7,500,000 $7,500,000 $7,500,000

Total Assets $9,193,004 $11,591,149 $14,894,898 $18,788,111 $22,864,202

Liabilities

Current Liabilities

Current Debt $0 $0 $0 $0 $0

Total Current Liabilities $0 $0 $0 $0 $0

Long-Term Liabilities

Long-Term Debt $0 $0 $0 $0 $0

New Long-Term Debt $0 $0 $0 $0 $0

Total Long-Term Liabilities $0 $0 $0 $0 $0

Total Liabilities $0 $0 $0 $0 $0

Shareholders' Equity

Paid-in Capital

Ow ner $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000

Investor $5,500,000 $5,500,000 $5,500,000 $5,500,000 $5,500,000

New Paid-in Capital $0 $0 $0 $0 $0

Total Paid-in Capital $8,000,000 $8,000,000 $8,000,000 $8,000,000 $8,000,000

Retained Earnings

Previous Retained Earnings ($334,000) $1,193,004 $3,591,149 $6,894,898 $10,788,111

Current Earnings $1,527,004 $2,398,145 $3,303,749 $3,893,212 $4,076,091

Total Retained Earnings $1,193,004 $3,591,149 $6,894,898 $10,788,111 $14,864,202

Total Shareholders' Equity $9,193,004 $11,591,149 $14,894,898 $18,788,111 $22,864,202

Total Liabilities & Equity $9,193,004 $11,591,149 $14,894,898 $18,788,111 $22,864,202

Yearly Balance Sheet

32

7.6 Break-Even Analysis

The Break-Even Analysis details two different break-even points. The Operating Break-Even

accounts for the Company’s revenue and expenses on the Income Statement. The Investment

Cash Flow Break-Even takes the Operating Break-Even one step further by including the inflow

and outflows of the Cash Flow. The Investment Cash Flow Break-Even looks at all transfers of

money except investments.

Analysis Month

Operating Break-Even 4

Investment Cash Flow Break-Even 38

Break-Even

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59

Month

Operating Break-Even

Accumulated Revenue Accumulated Expenses

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59

Month

Investment Cash Flow Break-Even

Accumulated Cash Received Accumulated Cash Used

33

7.7 Best & Worst Case

The Best and Worst Case analysis illustrates what the Company’s financial statements might

look like with an increase or decrease in Revenue.

10%


Gross Revenue $4,134,763 $5,986,063 $7,837,363 $8,994,425 $9,457,250

Total Cost of Revenue $508,056 $747,141 $986,226 $1,135,654 $1,195,425

Gross Profit $3,626,707 $5,238,922 $6,851,137 $7,858,771 $8,261,825






EBIT Percentage 52.2% 58.0% 60.6% 62.0% 61.8%


Taxes Accrued $379,904 $694,789 $950,503 $1,116,190 $1,169,238

Earnings $1,778,603 $2,779,158 $3,802,014 $4,464,759 $4,676,951


Net Cash Flow $1,772,889 $2,773,443 $3,796,299 $4,463,331 $4,676,951

Cash Balance $1,928,889 $4,702,332 $8,498,631 $12,961,962 $17,638,913

Best Case -- Revenue Increase By:

10%


Gross Revenue $3,382,988 $4,897,688 $6,412,388 $7,359,075 $7,737,750

Total Cost of Revenue $415,682 $611,297 $806,912 $929,171 $978,075

Gross Profit $2,967,306 $4,286,391 $5,605,476 $6,429,904 $6,759,675






EBIT Percentage 44.3% 51.5% 54.7% 56.4% 56.1%


Taxes Accrued $249,599 $504,283 $701,371 $830,416 $868,808

Earnings $1,249,507 $2,017,133 $2,805,485 $3,321,665 $3,475,231


Net Cash Flow $1,243,793 $2,011,418 $2,799,770 $3,320,237 $3,475,231

Cash Balance $1,399,793 $3,411,211 $6,210,981 $9,531,218 $13,006,449

Worst Case -- Revenue Decrease By:

34

Appendix A – Year 1 Financials

Year 1 Monthly Forecast illustrates the Company’s first 12 months after the Pre-Operating stage.

M onth 1 M onth 2 M onth 3 M onth 4 M onth 5 M onth 6 M onth 7 M onth 8 M onth 9 M onth 10 M onth 11 M onth 12

H eadco unt

Security 3 3 3 3 3 3 3 3 3 3 3 3

Housekeeping 8 8 8 8 8 8 8 8 8 8 8 8

M aintenance 2 2 2 2 2 2 2 2 2 2 2 2

Bartenders 4 4 4 4 4 4 4 4 4 4 4 4

Waitresses 5 5 5 5 5 5 5 5 5 5 5 5

Cooks 3 3 3 3 3 3 3 3 3 3 3 3

M anagers 5 5 5 5 5 5 5 5 5 5 5 5

T o tal H eadco unt 30 30 30 30 30 30 30 30 30 30 30 30

C o mpensatio n

Security $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083

Housekeeping $2,160 $2,160 $2,160 $2,160 $2,160 $2,160 $2,160 $2,160 $2,160 $2,160 $2,160 $2,160

M aintenance $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083 $2,083

Bartenders $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833

Waitresses $667 $667 $667 $667 $667 $667 $667 $667 $667 $667 $667 $667

Cooks $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333

M anagers $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250

P ayro ll

Security $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250 $6,250

Housekeeping $17,280 $17,280 $17,280 $17,280 $17,280 $17,280 $17,280 $17,280 $17,280 $17,280 $17,280 $17,280

M aintenance $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167

Bartenders $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333

Waitresses $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333

Cooks $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000

M anagers $31,250 $31,250 $31,250 $31,250 $31,250 $31,250 $31,250 $31,250 $31,250 $31,250 $31,250 $31,250

T o tal P ayro ll $ 75,613 $ 75,613 $ 75,613 $ 75,613 $ 75,613 $ 75,613 $ 75,613 $ 75,613 $ 75,613 $ 75,613 $ 75,613 $ 75,613

Year 1 Personnel

35


Units

Beverages 2,129 2,129 2,129 2,433 2,433 2,433 2,738 2,738 2,738 3,042 3,042 3,042

Room Rentals Condo 426 426 426 487 487 487 548 548 548 608 608 608

Room Rental Suite 426 426 426 487 487 487 548 548 548 608 608 608

Food Plate 1,065 1,065 1,065 1,217 1,217 1,217 1,369 1,369 1,369 1,521 1,521 1,521

M erchandise 58 58 58 67 67 67 75 75 75 83 83 83

Pontoon Boat Lease 30 30 30 30 30 30 30 30 30 30 30 30

Unit P rice

Beverages $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00

Room Rentals Condo $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00 $300.00

Room Rental Suite $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00 $200.00

Food Plate $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00

M erchandise $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00

Pontoon Boat Lease $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00

R evenue

Beverages $21,292 $21,292 $21,292 $24,333 $24,333 $24,333 $27,375 $27,375 $27,375 $30,417 $30,417 $30,417

Room Rentals Condo $127,750 $127,750 $127,750 $146,000 $146,000 $146,000 $164,250 $164,250 $164,250 $182,500 $182,500 $182,500

Room Rental Suite $85,167 $85,167 $85,167 $97,333 $97,333 $97,333 $109,500 $109,500 $109,500 $121,667 $121,667 $121,667

Food Plate $10,646 $10,646 $10,646 $12,167 $12,167 $12,167 $13,688 $13,688 $13,688 $15,208 $15,208 $15,208

M erchandise $583 $583 $583 $667 $667 $667 $750 $750 $750 $833 $833 $833

Pontoon Boat Lease $15,208 $15,208 $15,208 $15,208 $15,208 $15,208 $15,208 $15,208 $15,208 $15,208 $15,208 $15,208

Gro ss R evenue $ 260,646 $ 260,646 $ 260,646 $ 295,708 $ 295,708 $ 295,708 $ 330,771 $ 330,771 $ 330,771 $ 365,833 $ 365,833 $ 365,833

Unit C o st

Beverages $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00

Room Rentals Condo $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00 $30.00

Room Rental Suite $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $20.00

Food Plate $3.50 $3.50 $3.50 $3.50 $3.50 $3.50 $3.50 $3.50 $3.50 $3.50 $3.50 $3.50

M erchandise $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00

Pontoon Boat Lease $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

D irect C o sts

Beverages $6,388 $6,388 $6,388 $7,300 $7,300 $7,300 $8,213 $8,213 $8,213 $9,125 $9,125 $9,125

Room Rentals Condo $12,775 $12,775 $12,775 $14,600 $14,600 $14,600 $16,425 $16,425 $16,425 $18,250 $18,250 $18,250

Room Rental Suite $8,517 $8,517 $8,517 $9,733 $9,733 $9,733 $10,950 $10,950 $10,950 $12,167 $12,167 $12,167

Food Plate $3,726 $3,726 $3,726 $4,258 $4,258 $4,258 $4,791 $4,791 $4,791 $5,323 $5,323 $5,323

M erchandise $292 $292 $292 $333 $333 $333 $375 $375 $375 $417 $417 $417

Pontoon Boat Lease $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

D irect C o st o f R evenue $ 31,697 $ 31,697 $ 31,697 $ 36,225 $ 36,225 $ 36,225 $ 40,753 $ 40,753 $ 40,753 $ 45,281 $ 45,281 $ 45,281

Year 1 Revenue

36


Gro ss R evenue $ 260,646 $ 260,646 $ 260,646 $ 295,708 $ 295,708 $ 295,708 $ 330,771 $ 330,771 $ 330,771 $ 365,833 $ 365,833 $ 365,833

Direct Cost o f Revenue $31,697 $31,697 $31,697 $36,225 $36,225 $36,225 $40,753 $40,753 $40,753 $45,281 $45,281 $45,281

Other Direct Costs $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

T o tal C o st o f R evenue $ 31,697 $ 31,697 $ 31,697 $ 36,225 $ 36,225 $ 36,225 $ 40,753 $ 40,753 $ 40,753 $ 45,281 $ 45,281 $ 45,281

Gro ss P ro f it $ 228,949 $ 228,949 $ 228,949 $ 259,483 $ 259,483 $ 259,483 $ 290,018 $ 290,018 $ 290,018 $ 320,552 $ 320,552 $ 320,552

Gross Profit Percentage 87.8% 87.8% 87.8% 87.7% 87.7% 87.7% 87.7% 87.7% 87.7% 87.6% 87.6% 87.6%

Operat ing Expenses

M arketing & Advertising $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000

Utilities $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000 $12,000

Insurance $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333

Contractors $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

Legal/Accounting $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

Professional Fees $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

Office Supplies $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300

Dues & Subscriptions $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

Auto $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

Web Hosting/Internet $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200

Repair & M aintenance $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

Research & Development $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

Telephones $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000

Total Payro ll $75,613 $75,613 $75,613 $75,613 $75,613 $75,613 $75,613 $75,613 $75,613 $75,613 $75,613 $75,613

Payro ll Taxes $11,342 $11,342 $11,342 $11,342 $11,342 $11,342 $11,342 $11,342 $11,342 $11,342 $11,342 $11,342

Payro ll Benefits $7,561 $7,561 $7,561 $7,561 $7,561 $7,561 $7,561 $7,561 $7,561 $7,561 $7,561 $7,561

T o tal Operat ing Expenses $ 122,350 $ 122,350 $ 122,350 $ 122,350 $ 122,350 $ 122,350 $ 122,350 $ 122,350 $ 122,350 $ 122,350 $ 122,350 $ 122,350

Operat ing P ro f it $ 106,599 $ 106,599 $ 106,599 $ 137,133 $ 137,133 $ 137,133 $ 167,668 $ 167,668 $ 167,668 $ 198,202 $ 198,202 $ 198,202

Operating Profit Percentage 40.9% 40.9% 40.9% 46.4% 46.4% 46.4% 50.7% 50.7% 50.7% 54.2% 54.2% 54.2%

Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Earning B efo re Interest & T axes $ 106,599 $ 106,599 $ 106,599 $ 137,133 $ 137,133 $ 137,133 $ 167,668 $ 167,668 $ 167,668 $ 198,202 $ 198,202 $ 198,202

EBIT Percentage 40.9% 40.9% 40.9% 46.4% 46.4% 46.4% 50.7% 50.7% 50.7% 54.2% 54.2% 54.2%

Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Taxes Accrued $0 $0 $0 $27,427 $27,427 $27,427 $33,534 $33,534 $33,534 $39,640 $39,640 $39,640

Earnings $ 106,599 $ 106,599 $ 106,599 $ 109,707 $ 109,707 $ 109,707 $ 134,134 $ 134,134 $ 134,134 $ 158,562 $ 158,562 $ 158,562

Earnings Percentage 40.9% 40.9% 40.9% 37.1% 37.1% 37.1% 40.6% 40.6% 40.6% 43.3% 43.3% 43.3%

Year 1 Income Statement

37


Operat ing A ct ivit ies

C ash R eceived

Gross Revenue $260,646 $260,646 $260,646 $295,708 $295,708 $295,708 $330,771 $330,771 $330,771 $365,833 $365,833 $365,833

T o tal C ash R eceived $ 260,646 $ 260,646 $ 260,646 $ 295,708 $ 295,708 $ 295,708 $ 330,771 $ 330,771 $ 330,771 $ 365,833 $ 365,833 $ 365,833

C ash Used

Cost o f Revenue $31,697 $31,697 $31,697 $36,225 $36,225 $36,225 $40,753 $40,753 $40,753 $45,281 $45,281 $45,281

Payro ll/Taxes/Benefits $94,517 $94,517 $94,517 $94,517 $94,517 $94,517 $94,517 $94,517 $94,517 $94,517 $94,517 $94,517

Other Operating Expenses $27,833 $27,833 $27,833 $27,833 $27,833 $27,833 $27,833 $27,833 $27,833 $27,833 $27,833 $27,833

Additional Inventory $0 $0 $1,429 $0 $0 $1,429 $0 $0 $1,429 $0 $0 $1,429

Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Taxes Accrued $0 $0 $0 $27,427 $27,427 $27,427 $33,534 $33,534 $33,534 $39,640 $39,640 $39,640

T o tal C ash Used $ 154,047 $ 154,047 $ 155,475 $ 186,002 $ 186,002 $ 187,430 $ 196,637 $ 196,637 $ 198,065 $ 207,272 $ 207,272 $ 208,700

N et C ash F ro m/ (Used B y) Operat ing $ 106,599 $ 106,599 $ 105,170 $ 109,707 $ 109,707 $ 108,278 $ 134,134 $ 134,134 $ 132,706 $ 158,562 $ 158,562 $ 157,133

Invest ing A ct ivit ies

C ash R eceived

Proceeds from Property/Land $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Proceeds from Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

T o tal C ash R eceived $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

C ash Used

Purchase of Property/Land $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Purchase of Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

T o tal C ash Used $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

N et C ash F ro m/ (Used B y) Invest ing $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

F inancing A ct ivit ies

C ash R eceived

Proceeds from Investors $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Proceeds from Long-Term Debt $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

T o tal C ash R eceived $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

C ash Used

Dividends Paid $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Repayment of Long-Term Debt $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

T o tal C ash Used $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

N et C ash F ro m/ (Used B y) F inancing $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

N et C ash F lo w $ 106,599 $ 106,599 $ 105,170 $ 109,707 $ 109,707 $ 108,278 $ 134,134 $ 134,134 $ 132,706 $ 158,562 $ 158,562 $ 157,133

C ash B alance $ 262,599 $ 369,198 $ 474,368 $ 584,075 $ 693,782 $ 802,060 $ 936,194 $ 1,070,328 $ 1,203,034 $ 1,361,595 $ 1,520,157 $ 1,677,290

Year 1 Statement of Cash Flow

38


A ssets

Current Assets

Cash $262,599 $369,198 $474,368 $584,075 $693,782 $802,060 $936,194 $1,070,328 $1,203,034 $1,361,595 $1,520,157 $1,677,290

Inventory $10,000 $10,000 $11,429 $11,429 $11,429 $12,857 $12,857 $12,857 $14,286 $14,286 $14,286 $15,714

Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Current Assets $272,599 $379,198 $485,797 $595,504 $705,210 $814,917 $949,051 $1,083,185 $1,217,319 $1,375,881 $1,534,443 $1,693,004

Long-Term Assets

Property $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000

Building $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000

Other Long-Term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Long-Term Assets $7,500,000 $7,500,000 $7,500,000 $7,500,000 $7,500,000 $7,500,000 $7,500,000 $7,500,000 $7,500,000 $7,500,000 $7,500,000 $7,500,000

T o tal A ssets $ 7,772,599 $ 7,879,198 $ 7,985,797 $ 8,095,504 $ 8,205,210 $ 8,314,917 $ 8,449,051 $ 8,583,185 $ 8,717,319 $ 8,875,881 $ 9,034,443 $ 9,193,004

Liabilit ies

Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Current Debt $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Long-Term Liabilities

Long-Term Debt $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Long-Term Debt $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Long-Term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

T o tal Liabilit ies $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Shareho lders' Equity

Paid-in Capital

Owner $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000 $2,500,000

Investor $5,500,000 $5,500,000 $5,500,000 $5,500,000 $5,500,000 $5,500,000 $5,500,000 $5,500,000 $5,500,000 $5,500,000 $5,500,000 $5,500,000

New Paid-in Capital $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Paid-in Capital $8,000,000 $8,000,000 $8,000,000 $8,000,000 $8,000,000 $8,000,000 $8,000,000 $8,000,000 $8,000,000 $8,000,000 $8,000,000 $8,000,000

Retained Earnings

Previous Retained Earnings ($334,000) ($227,401) ($120,802) ($14,203) $95,504 $205,210 $314,917 $449,051 $583,185 $717,319 $875,881 $1,034,443

Current Earnings $106,599 $106,599 $106,599 $109,707 $109,707 $109,707 $134,134 $134,134 $134,134 $158,562 $158,562 $158,562

Total Retained Earnings ($227,401) ($120,802) ($14,203) $95,504 $205,210 $314,917 $449,051 $583,185 $717,319 $875,881 $1,034,443 $1,193,004

T o tal Shareho lders' Equity $ 7,772,599 $ 7,879,198 $ 7,985,797 $ 8,095,504 $ 8,205,210 $ 8,314,917 $ 8,449,051 $ 8,583,185 $ 8,717,319 $ 8,875,881 $ 9,034,443 $ 9,193,004

T o tal Liabilit ies & Equity $ 7,772,599 $ 7,879,198 $ 7,985,797 $ 8,095,504 $ 8,205,210 $ 8,314,917 $ 8,449,051 $ 8,583,185 $ 8,717,319 $ 8,875,881 $ 9,034,443 $ 9,193,004

Year 1 Balance Sheet

39

Please note that any and all computations herein are estimates or examples based on the assumptions and criteria contained in this

document. They are not intended to be and do not constitute a warranty or guarantee and are not a substitute for investor due diligence. The

developers reserve the right to make modifications and changes to the information contained herein. Renderings, photos and sketches are

representational and may not be totally accurate. Dimensions, sizes, specifications, layouts, views and materials are approximate and subject

to change without notice.

business plan · location to enjoy quality living and recreation. vision statement: to provide...

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