13-Exhibit D - Proforma Operating Statement.pdf

EXHIBIT D - PROFORMA OPERATING STATEMENT

MINNEAPOLIS AIRPORTS COMMISSION

MINNEAPOLIS/ST. PAUL INTERNATIONAL AIRPORT

Provide a projection of sales, expenses and net income for the Wi-Fi concession. Describe major assumptions. Attach additional sheets as necessary. In order for the Review Team to more easily compare Proposals, we ask that you conform your numbers to the format of income and expense categories described in the following sections and illustrated in the form at the end of this exhibit.

General Information

We are requesting a proforma for the concept you are proposing.

Income/Expense Description

Line

1. Revenue is defined as gross sales. See definition of “Gross Sales” in Contract.

2. This line indicates the projected gross sales, by category, you can generate with the proposed concept in your offer. Since alcohol sales require a minimum of 15% rent, this category should be separated from other beverage revenue.

3. Total Revenue is the sum of lines 2, or more if you have added more category revenue

4. Cost of sales in line 4 should be all costs of the product/service sold.

5. Total cost of sales represents the sum of all costs itemized in line 4.

6. Gross Income represents Total Revenue (line 3) less Total Cost of Sales (Line 6).

7. Controllable Expenses are the expenses directly related to the operating revenue and controlled by on-site management. All controllable expense account line items should represent the total for all locations being proposed.

8. Salaries and wages include all regular salaries and wages, overtime and bonus payments to employees.

9. Employee Benefits includes all payroll taxes (FICA, etc.), social insurance costs (worker’s compensation, health, etc.), and any other benefits paid to employees including paid time off.

10. Direct Operating expenses include expenses directly involved in service to the customer that are not included in the cost of sales (Line 4).

11. Marketing expenses include all indirect operating costs associated with selling, promotion, advertising, public relations, and marketing research.

12. Energy and utilities include all expenses related to electricity, HVAC, water, waste removal, etc.

13. Administrative and General expenses are commonly considered as indirect costs of operation and include, but are not limited to, postage, telephone, accounting/audit, general and property insurance, and security.

14. The Repairs and Maintenance line includes, repairs to furniture, fixture, equipment and maintenance contracts. These are expense items and not capital items as is the case with depreciation and reserve for replacement.

15. This line represents the total of all controllable expenses (Lines 7-14).

16. Income before fixed charges is calculated by subtracting the Controllable Expense total from Gross Income. This represents income before deduction of fixed charges such as occupation costs, reserve for replacement, interest, depreciation, amortization and income taxes.

17. Occupancy Costs include costs directly related to occupying and use of premises. The format provides for additional rent.

18. Percent Rent. Percentage of gross revenue that is being offered.

19. Additional Rent - This is a line item for any other additional rents offered.

20. Taxes include property taxes and any other tax related to personal property.

21. Property insurance is the cost of insuring the property from fire, and other types of loss including liability as required by the Contract.

22. Reserve for replacement represents the capital set aside for maintaining the condition of the operation/asset.

23. Corporate overhead represents costs associated with corporate office. This is not a controllable expense of unit management and is typically an allocation from the company’s corporate office.

24. Miscellaneous costs. This allows for costs not previously stated and should be kept to 3% or less of Total revenue (line 3).

25. This line represents the total of all occupancy costs (lines 17-24).

26. Earnings before Interest, Taxes, Depreciation and Amortization. (“EBITDA”). It is calculated by subtracting line 25 (Total Occupancy Costs) from line 16 (Income Before Fixed Charges).

Assumptions:

Please list relevant assumptions used in the proforma including rent offers that escalate over time or stepped rent thresholds if the rent offer escalates at different gross sales levels.

EXHIBIT D-1 - PER-UNIT PROFORMA OPERATING STATEMENT (YEAR 1)

CONCEPT TYPE: PROPOSER:

HOURS OF OPERATION:

LINE # AMOUNT PERCENT

(1) REVENUE

(2) Example: $ %

Food Beverage $ % Alcohol $ % Merchandise $ %

(3) TOTAL REVENUE $ 100.0%

(4) COST OF SALES

(5) TOTAL COST OF SALES $ %

(6) GROSS INCOME $ %

(7) CONTROLLABLE EXPENSES

(8) Salaries and Wages $ %

(9) Employee Benefits $ %

(10) Direct Operating Expenses $ %

(11) Marketing $ %

(12) Energy & Utilities $ %

(13) Administrative & General $ %

(14) Repairs & Maintenance $ %

(15) TOTAL CONTROLLABLE EXPENSES $ %

(16) INCOME BEFORE FIXED CHARGES $ %

(17) OCCUPANCY COSTS

(18) % Rent $ %

(19) Additional Rent-Other $ %

(20) Taxes-Property & Other $ %

(21) Property Insurance $ %

(22) Reserve for Replacement $ %

(23) Corporate Overhead $ %

(24) Miscellaneous Costs $ %

(25) TOTAL OCCUPANCY COSTS $ %

(26) EBITDA $ %

Assumptions: