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Eurosky
Pro-forma Financials

8.1.1 Cost of Goods Sold & Pricing

Year 1Year 2Year 3Year 4Year 5
1. AIRCRAFT COST / COST OF AIRCRAFT INTERESTS1
Aircraft #
16.846.9780000
26.846.9780000
306.846.978000
406.605.320000
5007.266.06800
6007.266.06800
70007.266.0680
80007.099.6190
900007.099.619
Average Cost Per Share1.711.7451.681.5371.816.5171.784.4611.752.405
Pricing Aircraft Share1.950.0002.000.0002.050.0002.100.0002.150.066
margin14%19%13%18%23%
2. COST OF AIRCRAFT OPERATION2
a) Direct Operating Cost (DOC) Cost per Flight Hour
Fuel265,00265,00265,00265,00265,00
Maintenance labor30,000,00130,65133,27135,93
Maintenance parts30,000,00109,48111,67113,90
Engine provisions175,00178,50182,07185,71189,43
Propeller overhaul provisions4,834,925,025,125,23
Landing & parking fees400,00408,00416,16424,4832,97
Small supplies & catering80,0081,6083.2384,9086,59
ATC / Eurocontrol284,00289,68295,47301,38307,41
Augusta Air Surcharge60,4461,3974,3575.5876,82
TOTAL DOC1.269,271.289,091.561,451.587,111.613,29
Pricing Hourly Fee2.22.22.252.32.35
margin42%41%31%31%31%
b) Annual Fixed Costs4
Crew Salaries pilot60.000,0063.000,0066.150,0069.457,5072.930,38
Crew Salaries co-pilot40.000,0042.000,0044.100,0046.305,0048.620,25
Crew Salaries benefits20.000,0021.000,0022.050,0023.152,5024.310,13
Hangar22.200,0022.644,0023.096,8823.558,8224.029,99
Insurance42.500,0043.350,0044.217,0045.101,3446.003,37
Recurrent Training50,0017.686,8018.040,5418.401,3518.769,37
Aircraft modernization etc.25.552,7026.063.7526.585,0327.116,7327.659,06
Navigational Chart Service1.506,201.536,321.567,051.598,391.630,36
Refurb50.715,0051.729,3052.763,8953.819,1654.895,55
Augusta Air Surcharge (On Crew only)12.000,0012.600,0013.230,0013.891,5014.586,08
TOTAL274.473,90301.610,18311.800,38322.402,29333.434,53
per share per month5.718,216.283,556.495,846.716,716.946,55
Pricing Monthly Fee15.00015.00015.30015.75016.000
margin162%139%136%134%130%
1 Assumes a 15-18% discount from airplane list price and a yearly list price increase.
2 Cost structure shown for an aircraft acquired in year 1.
3 Takes into account 1000 hours "free maintenance"
(all scheduled and non-scheduled maintenance cost will be borne by manufacturer).
4 Aircraft Ownership charges excluded.
5 First year training included in aircraft price.

Sales Forecast & Aircraft Operations

Year 1Year 1Year 1Year 1Year 2Year 2Year 2Year 2Year 3Year 3Year 3Year 3Year 4Year 4Year 4Year 4Year 5Year 5Year 5Year 5
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4
Number of Initial Contacts2029514044424925383857484848553848375144
Number of Presentation03875684248856875688
Number of Flight Demos10,00,51,82,51,72,12,31,90,81,62,22,82,02,22,52,61,72,42,02,6
Shares Sold in Quarter00222222122322232223
Repurchase of Shares in Quarter200000000000010002000
Net Cum. Shares Sold0024681012131517202123252828303235
Airplanes in Fleet11122334445666788899
Total Hours used by Shareholders0016821412322913293774765185466087858248228781.1031.141.1
Total Demand Not Met By Fleet0%0%4%6%5%9%7%5%4%8%6%5%4%6%6%4%3%5%5%4%
Total Hours Revenue Charter18545454563956565833749911730531361523841169
Capacity Utilization (Fleet)315%49%64%74%80%95%92%85%85%100%100%96%95%101%98%98%100%103%102%99%
1 Non-Integer Numbers due to statistical modeling.
2 Assumed to take place at year end.
3 Utilization of over 100% can be attributed to yearly seasonality patterns.

Income Statement
All figures are in DM (1 DM = $0.59)

BASE CASEYear 1Year 1Year 1Year 1Year 1Year 1Year 1Year 1Year 1Year 1Year 1Year 1Year 1
JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecemberTotal
Sales1
Management Fee009.0009.0009.0009.0009.0009.0009.0009.00018.00018.000108.000
Office Usage Fee003.0003.0003.0003.0003.0003.0003.0003.0006.0006.00036.000
Hourly Fee00000008.31320.98336.96952.96662.048181.279
Monthly Fee000000017.25034.50051.75069.00069.000241.500
Crew Overnight00000002565137691.0261.0263.590
Customer Aircraft Standby Request00000005341.0681.6032.1372.1377.479
Demonstration flights0003.0512.0393.0514.3614.5926.4236.4236.4235.65242.015
Brokerage Income005.3175.8566.1786.1835.9276.0626.2516.6815.9275.79260.174
Charter Income0049.06849.06849.06849.06849.06849.06849.06849.06849.06849.06849.0680
Total Sales0066.38569.97569.28570.30271.35698.075130.806165.263210.547218.7231.170.717
Costs of Goods Sold2
Usage Fee0015.00015.00015.00015.00015.00015.00015.00015.00030.00030.000180.000
Hourly Fee00000005.06012.77222.50332.24037.769110.344
Crew Overnight00000001923855777697692.692
Customer Aircraft Standby Request000000053107160214214748
Charter Flights0032.90532.90532.90532.90532.90532.90532.90532.90532.90532.905329.050
Ferry Flights00000001.5183.8326.7519.67211.33133.104
Monthly Fee0026.30426.30426.30426.30426.30426.30426.30426.30452.60752.607315.646
Charter for Share owners00000001.4634.27410.5464.1892.62923.101
Total Costs of Goods Sold0074.20974.20974.20974.20974.20982.49595.579114.746162.596168.224994.685
Gross margin00-7.824-4.234-4.924-3.907-2.85315.58135.22750.51747.94950.499176.031
Gross Profit Margin0%0%-12%-6%-7%-6%-4%16%27%31%23%23%15%
Fixed Cost
G & A Expenses
Communication Equipment Lease33903903903903903903903903903903903904.680
Office & Business Insurance42002002002002002002002002002002002002.400
Computer Service Contracts55.500000000000005.500
Tax & Legal650050050050050050050050050050050035009.000
Non-sales Travel72.00012.4502.0002.0002.0002.0002.0002.0002.0002.0002.0002.00034.450
Office Salaries & Benefits8000000004.8004.8004.8004.80019.200
Office Supplies92.5002502502502502502502502502502502505.250
Officer Salaries1026.66726.66726.66726.66726.66726.66726.66726.66726.66726.66726.66726.667320.004
Benefits115.3335.3335.3335.3335.3335.3335.3335.3335.3335.3335.3335.33363.996
Office Rent123.0503.0503050305030503.0503.0503.0503.0503.0503.0503.05036600
Startup Expense1326.9100000000000026.910
Telephones141.2501.5002.5002.5002.5002.5002.5002.5002.50025002.5002.50027.750
Utilities153003003003003003003003003003003003003.600
Marketing Expenses
Advertising1600020.00030.00020.0000010.00010.00010.0000100.000
Public Relations00040.00040.00000020.000000100.000
Postage & Courier Services172002003002302302852852852852852654003.250
Promotional Materials180150001401928717936936936936934124017.655
Trade Show Participation1900006.43800000006.438
Selling Expenses
Credit Verification20001133445188188188188188128751.335
Entertainment & Catering21000135411352572794504504503782.575
Demonstration Flights22002.9194.2337.6922.7736.8847.0945.8395.8398.7585.13857.169
Total Operational Expenses74.80065.84044.662106.014125.72364.75049.17349.40583.12163.12165.93255.221847.762
Operating Income (or Loss)-74.800-65.840-52.486-110.248-130.647-68.657-52.026-33.824-47.894-12.604-17.983-4.722-671.731
Less Depreciation23-999-999-999-999-999-999-999-999-999-999-999-999-11.988
EBIT-75.799-66.839-53.485-111.247-131.646-69.656-53.025-34.823-48.893-13.603-18.982-5.721-683.719
Plus extraordinary income24010.8063.9273.4122.8022.4792.2332.2334.6687.0445.513217.513262.630
Less extraordinary expenses2500-2.500-2.500-2.500-2.500-2.500-2.500-2.500-2.500-2.500-2.500-25.000
Income from Sale260000000182.500182.500182.500182.5000730.000
Less Interest Expense270000000000000
Income (or Loss) Before Taxes-75.799-56.033-52.058-110.335-131.344-69.677-53.292147.410135.775173.441166.531209.292283.911
Less Income Taxes28000000000033.58294.182127.764
Net Income (or Loss)-75.799-56.033-52.058-110.335-131.344-69.677-53.292147.410135.775173.441132.949115.110156.147
Cummulative Net income (or Loss)-75.799-131.832-183.890-294.225-425.569-495.246-548.538-401.128-265.353-91.91241.037156.147156.147
Return on Sales0%0%-78%-158%-190%-99%-75%150%104%105%63%53%13%
Notes to the Income Statement
1 See Sales Projections Sheet.
2 See Cost of Goods Sold Sheet.
3 Telephone system with 5 telephones.
4 Renters Insurance up to DM 50,000 and Business Insurance up to 100,000 DM.
5 Service contract @ 10% of computer price.
6 Tax and Legal Services.
7 Non Business Aircraft Travel. Includes Sales School in February in Wichita, KS.
8 One secretary @ salary 48,000 DM/yr + benefits 20%. First six months are fully (incl. benefits) paid by Employment agency. Hired in March.
9 Letterheads and miscellaneous office supplies.
10 Yearly salary per executive of 80,000 DM excluding benefits.
11 20% of Salary.
12 Office Rent at Augsburg airport. 100 m2 @ 30.50DM per m2.
13 Includes special software (Bookkeeping & Operations), cost of incorporation (3.000 DM per company), additional equipment (coffee machine etc.). See start-up budget.
14 General ISDN phone line, 2hrs. per day per person phone time.
15 Electricity and water @ 3 DM per m2.
16 See Advertising & PR Budget. PR firm will be hired (hourly compensation @ 290 DM).
17 For mailing of contract and collateral materials (see Sales Forecast), incl. Christmas mailings.
18 For development and duplication of collateral materials.
19 Participation at AERO (April, bi-annual), ILA (May, bi-annual), assumes two representatives; figure includes travel, hotel, entertainment, one aircraft on site, promotional material etc.
20 Assumes 75 DM per prospect.
21 Assumes 150 DM per Flight Demo Hour.
22 Costs for demonstration flights (DOC, includes ferry), plus PR flights (includes ferry to trade shows).
23 Assumes 5% depreciation per year on office equipment and 10% per year on computer equipment.
24 Interest Income from investing Cash Balances. See Cash Management Sheet.
25 Bonus and Trustee expenses.
26 Net Income from Share sale (Share price - repayment of debt - cost of investment).
27 Interest on Long Term Debt.
28 German Federal Taxes equal 45%.

Income Statement
All figures are in DM (1 DM = $0.59)

BASE CASE Year 2 Year 2 Year 2 Year 2 Year 2 Year 3 Year 3 Year 3 Year 3 Year 3 Year 4 Year 4 Year 4 Year 4 Year 4 Year 5 Year 5 Year 5 Year 5 Year 5
  Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total
Sales1
Management Fee 54.000 63.000 81.000 99.000 297.000 108.000 108.000 126.000 144.000 486.000 162.000 171.000 189.000 207.000 729.000 216.000 234.000 243.000 270.000 963.000
Office Usage Fee 18.000 21.000 27.000 33.000 99.000 36.000 36.000 42.000 48.000 162.000 54.000 57.000 63.000 69.000 243.000 72.000 78.000 81.000 90.000 321000
Hourly Fee 260.792 427.903 537.562 607.403 1.833.660 711.685 897.329 977.577 1.030.3673.616.957 1.171.688 1.514.406 1.589.699 1.585.3755.861.168 1.729.3112.173.6142.246.5002.166.7198.316.145
Monthly Fee 276.000 379.500 483.000 603.750 1.742.250 686.205 738.990 844.560 1.002.9153.272.670 1.141.088 1.249.763 1.358.438 1.521.4505.270.738 1.656.0001.766.4001.895.2002.042.4007.360.000
Crew Overnight 4.308 5.923 7.538 9.423 27.192 11.025 11.873 13.569 16.113 52.581 18.700 20.481 22.262 24.933 86.377 28.05 29.920 32.102 34.595 124.667
Customer Aircraft Standby Request 8.974 12.340 15.705 19.631 56.650 22.969 24.736 28.269 33.570 109.543 38.959 42.669 46.379 51.945 179.951 58.438 62.334 66.879 72.073 259.724
Demonstration flights 14.272 16.311 17.767 15.049 63.399 9.902 14.384 18.762 22.097 65.144 17.434 19.275 21.008 21.225 78.943 16.040 20.324 18.677 21.972 77.013
Brokerage Income 20.113 25.765 25.470 24.630 95.978 26.459 31.734 45.495 50.430 154.117 53.493 55.610 39.982 65.820 214.905 84.615 99.009 96.238 91.585 371.446
Charter Income 153.092 100.530 153.092 151.709 558.423 162.136 87.441 201.770 271.161 722.507 326.882 81.270 1.476.344 379.795 935.290 420.078 98.603 106.905 472.444 1.098.030
Total Sales 809.551 1.052.2721.348.1341.563.5964.773.552 1.774.3811.950.4862.298.0022.618.6528.641.520 2.984.243 3.211.474 3.477.112 3.926.54213.599.371 4.280.5324.562.2044.786.5005.261.78918.891.025
Costs of Goods Sold2
Usage Fee 90.000 105.000 135.000 165.000 495.000 180.000 180.000 210.000 240.000 810.000 270.000 285.000 315.000 345.000 1.215.000 360.000 390.000 405.000 450.000 1.605.000
Hourly Fee 159.984 262.498 329.768 372.612 1.124.862 458.281 577.825 629.499 663.493 2.329.098 766.827 991.123 1.040.400 1.037.5693.835.919 1.123.7841.412.5121.459.8761.408.0315.404.203
Crew Overnight 3.231 4.442 5.654 7.067 20.394 8.269 8.905 10.177 12.085 39.436 14.025 15.361 16.697 18.700 64.782 21.038 22.440 24.076 25.946 93.500
Customer Aircraft Standby Request 897 1.234 1.571 1.963 5.665 2.297 2.474 2.827 3.357 10.954 3.896 4.267 4.638 5.194 17.995 5.844 6.233 6.688 7.207 25.972
Charter Flights 98.903 66.258 98.903 98.051 362.115 104.641 58.104 131.811 176.842 471.397 209.814 53.120 95.190 243.837 601.961 270.806 67.000 72.642 301.977 712.424
Ferry Flights 47.995 78.749 98.930 111.784 337.458 137.484 173.347 188.850 199.048 698.730 230.048 297.337 312.120 311.271 1.150.776 337.135 423.754 437.963 422.409 1.621.261
Monthly Fee 173.426 202.330 260.139 317.947 953.842 358.570 358.570 418.332 478.094 1.613.567 556.144 587.041 648.835 710.628 2.502.6481 766.899 830.808 862.762 958.624 3.419.093
Charter for Share owners 19.030 67.957 65.504 54.513 207.004 41.908 114.540 109.976 81.547 347.971 62.952 155.550 159.744 101.738 479.985 84.797 188.235 200.130 120.590 593.753
Total Costs of Goods Sold 593.466 788.468 995.469 1.128.9383.506.340 1.291.4511.473.7651.701.4721.854.4656.321.153 2.113.706 2.388.799 2.592.623 2.773.9389.869.065 2.970.3033.340.9823.469.1373.694.78613.475.207
Gross margin 216.086 263.804 352.667 434.658 1.267.214 482.930 476.721 596.529 764.187 2.320.367 870.537 822.675 884.490 1.152.6003.730.307 1.310.2291.221.2221.317.3631.567.0045.415.818
Gross Profit Margin 27% 25% 26% 28% 27% 27% 24% 26% 29% 27% 29% 26% 25% 29% 27% 31% 27% 28% 30% 29%
Fixed Cost
G & A Expenses
Communication Equipment Lease3 1.229 1.229 1.229 1.229 4.916 1.290 1.290 1.290 1.290 5.160 1.354 1.354 1.354 1.354 5.418 1.422 1.422 1.422 1.422 5.689
Office & Business Insurance4 630 630 630 630 2.520 662 662 662 662 2.646 695 695 695 695 2.778 729 729 729 729 2.917
Computer Service Contracts5 5.500 0 0 0 5.500 5.500 0 0 0 5.500 5.500 0 0 0 5.500 5.500 0 0 0 5.500
Tax & Legal6 1.575 1.575 1.575 5.125 9.850 1.654 1.654 1.654 5.654 10.615 1.736 1.736 1.736 5.836 11.046 1.823 1.823 1.823 6.323 11.793
Non-sales Travel7 6.300 6.300 6.300 6.300 25.200 6.615 6.615 6.615 6.615 26.460 6.946 6.946 6.946 6.946 27.783 7.293 7.293 7.293 7.293 29.172
Office Salaries & Benefits8 15.120 15.120 27.120 39.120 96.480 41.076 41.076 41.076 41.076 164.304 43.130 43.130 43.130 43.130 172.519 45.286 45.286 45.286 45.286 181.145
Office Supplies9 788 788 788 788 3.152 827 827 827 827 3.308 868 868> 868 868 3.473 912 912 912 912 3.647
Officer Salaries10 84.000 84.000 84.000 84.000 336.000 90.300 90.300 90.300 90.300 361.200 97.073 97.073 97.073 97073 388.290 104.353 104.353 104.353 104.353 417.412
Benefits11 16.800 16.800 16.800 16.800 67.200 18.060 18.060 18.06 18.060 72.24 19.415 19.415 19.415 19.415 77.658 20.871 20.871 20.871 20.671 83.482
Office Rent12 9.608 9.608 9.608 9.608 38.432 10.088 10.088 10.088 10.088 40.352 10.592 10.592 10.592 10.592 42.369 11.122 11.122 11.122 11.122 44.488
Startup Expense13 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Telephones14 7.875 7.875 7.875 7.875 31.500 8.269 8.269 8.269 8.269 33.075 8.682 8.682 8.682 8.682 34.729 9.116 9.116 9.116 9.116 36.465
Utilities15 945 945 945 945 3.780 992 992 992 992 3.969 1.042 1.042 1.042 1.042 4.167 1.094 1.094 1.094 1.094 4.376
Marketing Expenses
Advertising16 40.000 20.000 20.000 10.000 90.000 10.000 70.000 10.000 10.000 100.000 10.000 70.000 0 20.000 100.000 10.000 70.000 10.000 10.000 100.000
Public Relations 0 40.000 20.000 0 60.000 0 80.000 20.000 0 100.000 0 40.000 0 30.000 70.000 0 70.000 20.000 0 90.000
Postage & Courier Services17 880 870 905 935 3.590 916 916 1.011 1.116 3.959 1.039 1.039 1.074 1.139 4.289 1.118 1.063 1.133 1.248 4.564
Promotional Materials18 834 961 1.202 633 3.630 10.564 830 1.499 1.387 14.280 1.073 1.299 1.577 1.246 5.195 11.224 1.184 1.621 1.549 15.578
Trade Show Participation19 0 4.563 0 0 4.563 0 14.875 0 0 14.875 0 7.547 0 0 7.547 0 31.75 0 0 31.750
Selling Expenses
Credit Verification20 450 435 488 188 1.561 345 345 608 480 1.778 480 480 593 345 1.898 600 338 563 450 1.950
Entertainment & Catering21 960 1.168 1.317 1.040 4.485 490 958 1.416 1.764 4.628 1.33 1.533 1.725 1.749 6.337 1.265 1.779 1.581 1.977 6.602
Demonstration Flights22 15.917 19.241 16.152 18.094 69.404 13.740 17.814 22.583 23.247 77.384 22.412 19.164 24.020 20.936 86.533 21.24 23.471 16.979 29.962 91.652
Total Operational Expenses 209.411 232.108 216.934 203.307 861.763 221.386 365.570 236.949 221.825 1.045.731 233.366 332.594 720.521 271.047 1.057.528 254.969 403.606 255.898 253.708 1.168.181
Operating Income (or Loss) 6.675 31.696 135.733 231.348 405.451 261.543 111.151 359.581 542.361 1.274.636 637.171 490.081 663.968 881.558 2.672.779 1.065.260817.616 1.061.4651.313.2964.247.637
Less Depreciation23 -2.996 -2.996 -2.996 -2.996 -11.984 -2.996 -2.996 -2.996 -2.996 -11.985 -2.996 -2.996 -2.996 -2.996 -11.985 -2.996 -2.996 -2.966 -2.996 -11.985
EBIT 3.679 28.700 132.737 228.355 393.468 258.547 108.155 356.585 539.365 1.262.652 634.175 487.085 660.972 878.562 2.660.794 1.052.264814.620 1.058.4691.310.3004.2135.653
Plus extraordinary income24 27.534 33.647 32.593 107.282 201.056 -65.462 50.212 58.183 289.969 332.902 -139.629 90.269 95.145 182.684 228.469 -232.138 140.816 157.974 401.016 467.726
Less extraordinary expenses25 -23.116 -7.500 -7.500 -7.500 -45.616 -139.990 -7.500 -7.500 -7.500 -162.490 -209.519 -7.500 -7.500 -7.500 -232.019 -316.586 -7.500 -7.500 -7.500 -339.086
Income from Sale26 465.000 465.000 465.000 465.000 1.860.000 282.500 565 565 847.500 2.260.000 665.000 665.000 665.000 997.500 2.992.500 765.000 765.000 765.000 1.147.5003.442.500
Less Interest27 0 0 0 0 0 -5.000 -5.000 -5.000 -5.000 -20.000 -7.500 -7.500 -7.500 -7.500 -30.000 -12.500 -12.500 -12.500 -12.500 -50.000
Income (or Loss) Before Taxes 473.097 519.847 622.830 793.137 2.408.908 330.595 710.866 967.268 1.664.3353.673.064 942.527 1.227.354 1.406.117 2.043.7465.619.744 1.256.0981.700.4361.961.4432.838.8167.756.793
Less Income Taxes28 212.895 233.931 280.274 356.912 1.084.012 148.768 319.89 435.270 748.961 1.652.879 424.137 552.309 632.753 919.686 2.528.885 565.244 765.196 882.649 1.277.4673.490.557
Net Income (or Loss) 260.202 285.916 342.556 436.225 1.324.896 181.827 390.977 531.997 915.384 2.020.185 518.390 675.045 773.364 1.124.0603.090.859 690.854 935.24 1.078.7941.561.3494.266.236
Cummulative Net income (or Loss) 416.361 702.277 1.044.8331.481.0591.481.055 1.662.8862.053.6632.585.8603.501.2443.501.244 4.019.634 4.694.679 5.468.044 6.592.1046.592.104 7.282.9588.218.1979.296.99110.858.34010.885.340
Return on Sales 32% 27% 25% 28% 28% 10% 20% 23% 35% 23% 17% 21% 22% 29% 23% 16% 20% 23% 30% 23%

Balance Sheet (1) All figures are in DM (1 DM = $0.59)
BASE CASEYear 1Year 1Year 1Year 1Year 1Year 1Year 1Year 1Year 1Year 1Year 1Year 1Year 1
JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecemberTotal
Assets
Current Assets
Cash2.360.3552.305.321837.206727.932597.691528.861476.411995.8121.502.6782.046.9491.176.1891.351.6711.351.671
Accounts Receivables1009.95810.49610.39310.54510.70314.71119.62124.78931.58232.80832.808
Inventory2001.500.0001.500.0001.500.0001.500.0001.500.0001.125.000750.000375.0001.500.0001.500.0001.500.000
Total Current Assets2.360.3552.305.3212.347.7642.238.4292.108.0842.039.4061.987.1142.135.5242.272.2982.446.7392.707.7712.884.4802.884.480
Fixed Assets3
Computer Equipment54.08353.16752.25051.33350.41749.50048.58347.66746.75045.83344.91744.00044.000
Office Equipment9.7639.6819.5999.5179.4359.3539.2719.1899.1079.0258.9438.8618.861
Total Fixed Assets63.84662.84861.84960.85059.85158.85357.85456.85555.85754.85853.85952.86152.861
Total Assets2.424.2012.368.1692.409.6132.299.2792.167.9362.098.2592.044.9682.192.3792.328.1602.501.5972.761.6302.937.3402.937.340
Liabilities & Equity
Current Liabilities
Accounts Payable, Other0093.50193.50193.50193.50193.50193.50193.50193.501187.002187.002187.002
Accrued Taxes000000000033.58294.18294.182
Interest Payable on Debt40000000000000
Total Current Liabilities0093.50193.50193.50193.50193.50193.50193.50193.501220.585281.184281.184
Long Term Debt1.000.0001.000.0001.000.0001.000.0001.000.0001.000.0001.000.0001.000.0001.000.0001.000.0001.000.0001.000.0001.000.000
Equity
VC Equity1.000.0001.000.0001.000.0001.000.0001.000.0001.000.0001.000.0001.000.0001.000.0001.000.0001.000.0001.000.0001.000.000
Founders' Equity500.000500.000500.000500.000500.000500.000500.000500.000500.000500.000500.000500.000500.000
Total Equity1.500.0001.500.0001.500.0001.500.0001.500.0001.500.0001.500.0001.500.0001.500.0001.500.0001.500.0001.500.0001.500.000
Retained Earnings or Loss5-75.799-131.831-183.888-294.222-425.566-495.242-548.533-401.122-265.346-91.90541.045156.156156.156
Net Worth1.424.2011.368.1691.316.1121.205.7781.074.4341.004.758951.4671.098.8781.234.6541.408.0951.541.0451.656.1561.656.156
Total Liabilities & Equity2.424.2012.368.1692.409.6132.299.2792.167.9362.098.2592.044.9682.192.3792.328.1552.501.5972.761.6302.937.3402.937.340
Debt Equity Ratio0,700,730,760,930,931,001,050,910,810,710,650,600,60

BASE CASE Year 2 Year 2 Year 2 Year 2 Year 2 Year 3 Year 3 Year 3 Year 3 Year 3 Year 4 Year 4 Year 4 Year 4 Year 4 Year 5 Year 5 Year 5 Year 5 Year 5
  Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total
Assets
Current Assets
Cash3.364.0964.628.0534.506.1835.278.6835.278.6836.490.5686.495.1678.036.5108.953.7758.953.77510.399.8810.665.489 12.503.84613.944.36713.944.367
Accounts Receivables191.51899.037123.577137.960137.960156.203171.380177.291205.042205.042215.466236.387238.801265.849265.849
Inventory21.125.000375.0001.125.001.500.0001.500.000750.0001.500.000750.0001.125.0001.125.000375.0001.125.000375.000750.000750.000
Total Current Assets4.580.6145.102.895.754.7596.916.6436.916.6437.396.7718.166.5478.963.80110.283.81710.283.81710.990.346 12.026.87713.117.64714.960.21614.960.216
Fixed Assets3
Computer Equipment30.15027.50024.75022.00022.00019.25016.50013.75011.00011.0008.2505.5002.75000
Office Equipment7.6307.3847.1386.8926.8926.6456.3996.1535.9075.9075.6615.4155.1694.9234.923
Total Fixed Assets37.88034.88431.88828.89228.89225.89522.89919.90316.90716.90713.91110.9157.9194.9234.923
Total Assets4.618.4945.137.7745.786.6476.945.5346.945.5347.422.6678.189.4468.983.70410.300.724 10.300.72411.004.25712.037.79113.125.56614.965.13914.965.139
Liabilities & Equity
Current Liabilities
Accounts Payable, Other411.190411.190513.988616.785616.785639.781746.411746.411853.041853.041871.032979.911979.9111.088.7901.088.790
Accrued Taxes42.751171.054185.132325.838325.838260.751245.856266.749353.079353.079346.101335.517344.498513.843513.843
Interest Payable on Debt41.6671.6671.6671.6671.6672.5002.5002.5002.5002.5004.1674.1674.1674.1674.167
Total Current Liabilities455.608583.911700.787944.290944.290903.032994.7671.015.6601.208.6201.208.6201.221.3001.319.5941.328.5751.606.7991.606.799
Long Term Debt1.000.0001.000.0001.000.0001.000.0001.000.0001.000.0001.000.0001.000.0001.000.0001.000.000 1.000.000 1.000.000 1.000.000 1.000.0001.000.000
Equity
VC Equity1.000.001.000.0001.000.0001.000.0001.000.0001.000.0001.000.0001.000.0001.000.0001.000.000 1.000.000 1.000.000 1.000.000 1.000.0001.000.000
Founders' Equity500.000500.000500.000500.000500.000500.000500.000500.000500.000500.000500.000500.000500.000500.000500.000
Total Equity1.500.0001.500.0001.500.0001.500.0001.500.0001.500.0001.500.0001.500.0001.500.0001.500.000 1.500.000 1.500.000 1.500.000 1.500.0001.500.000
Retained Earnings or Loss51.662.8862.053.8632.585.8603.501.2443.501.2444.019.6344.694.6795.468.0446.592.1046.592.104 7.282.958 8.218.1979.296.99110.858.340 10.858.340
Net Worth3.162.8863.553.8634.085.8605.001.2445.001.2445.519.6346.194.6796.968.0448.092.1048.092.104 8.782.9589.718.197 10.796.991 12.358.340 12.358.340
Total Liabilities & Equity4.618.495.137.7745.786.6476.945.5346.945.5347.422.6678.189.4468.983.70410.300.72410.300.72411.004.257 12.037.791 13.125.566 14.965.139 14.965.139
Debt Equity Ratio0,320,280,240,200,200,180,160,140,120,12 0,11 0,10 0,09 0,060,08
Notes to the Balance Sheet
1 Assumes 85% of invoices are paid in the current month and 15% in the following month.
2 Shares of Aircraft still owned by Eurosky (=Equity interest in Aircraft LLP).
3 Assumes Computer Equipment worth 55,000 DM and Office furniture worth 9,845 DM.
4 First two years free of interest. Year 3: 2%, year 4: 3% from year 5 on 5%.
5 From Income Statement (takes into account tax loss carry forward and paid bonuses).

Cash Flow Statement (1)

BASE CASEYear 1Year 1Year 1Year 1Year 1Year 1Year 1Year 1Year 1Year 1Year 1Year 1Year 1
JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecemberTotal
Operating Cash Inflows
+ Net Sales0066.38569.97569.28570.30271.35698.076130.805165.263210.546218.7221.170.714
+ Commission Income from A/C sales00000000000212.000212.000
- Accounts Receivable00(9.958)(538)103(152)(158)(4.008)(4.909)(5.169)(6.792)(1.226)(32.808)
1 Net Operating Cash Inflows0056.42769.43669.311870.14971.19894.068125.896160.094201753429.4961.349.906
Operating Cash Outflows
+ Cost of Goods Sold0074.20974.20974.20974.20974.20982.49695.578114.746162.597168.223994.683
+ General & Administrative Expenses112.14550.25040.80040.80040.80040.80040.80040.80045.60045.60045.60048.600592.595
+ Marketing Expenses20015.20044060.42276.75520.46465465430.65410.65410.606640227.343
+ Selling Expenses003.0324.4027.7783.0967.3297.5606.4766.4769.3355.59161.075
+ Taxes000000000033.58294.182127.764
- Accrued Taxes0000000000(33.582)(60.599)(94.182
- Accounts Payable0(93.501)00000000(93.501)0(187.002)
2 Total Operating Cash Outflows112.34565.45024.979179.832199.541138.568122.991131.510178.300177.476134.637256.6371.722.275
3 Net Operating Cash Flow (Item 1 - Item 2)(112.345)(65.450)31.448(110.396)(130.153)(68.419)(51.793)(37.442)(52.413)(17.382)69.116172.859(372.370)
Priority Outflows
+ Debt Repayment for Aircraft LLP00000001.392.5001.392.5001.392.5001.392.50005.570.000
+ Trustee Expense002.5002.5002.5002.5002.5002.5002.5002.5002.5002.50025.000
+ Interest Expense0000000000000
+ VAT Payment10000000000000
+ Lease Payments3903903903903903903903903903903903904.680
4 Total Priority Outflows3903902.8902.0902.8902.8902.8901.395.3901.395.3901.395.3901.395.3902.8905.599.680
Discretionary Outflows
+ Startup Expenses26.9100000000000026.910
+ Year End Bonus20000000000000
5 Total Discretionary Outflows26.9100000000000026.910
Financial Flows
- Founding of Aircraft LLPs00(1.500.000)0000000(1.500.000)0(3.000.000)
+ Sale of Interest in Aircraft LLPs00000001.950.0001.950.0001.950.0001.950.00007.800.000
+ Debt Instruments1.000.000000000000001.000.000
+ Stock Securities1.500.000000000000001.500.000
+ Interest received010.8063.9273.4122.8022.4792.2332.2334.6687.0445.5135.51350.631
6 Total Financial Flows2.500.00010.806(1.496.073)3.4122.0022.4792.2331.952.2331.954.6681.957.044455.5135.5137.350.631
Net change in Cash & Marketable Securities
+ Net Operating Cash Flow (Item 3)(112.345)(65.450)31.448(110.396)(130.153)(68.419)(51.793)(37.442)(52.413)(17.382)69.116172.859(372.370)
- Priority Outflows (Item 4)(390)(390)(2.890)(2.890)(2.890)(2.890)(2.890)(1.3915.390)(1.395.390)(1.395.390)(1.395.390)(2.890)(5.599.680)
- Discretionary Flows (Item 5)(26.910)00000000000(26.910)
+ Financial Flows (Item 5)2.500.00010.806(1.496.073)3.4122.8022.4792.2331.952.2331.954.6681.957.044455.5135.5137.350.631
7 Net Change In Cash and Marketable Securities2.360.355(55.034)(1.467.615)(109.874)(130.241)(68.830)(52.450)519.401506.865544.272(870.760)175.4821.351.671
End of Period Cash Balance2.360.3552.305.321837.806727.932597.691528.861476.411995.8121.502.6782.046.9491.176.1891.351.6711.351.671
Notes to the Cash Flow Statement
1 German sales tax @ 15% of sales price. See VAT worksheet.
2 Bonus paid in January for previous year performance. See Salary calculation sheet.
BASE CASE Year 2 Year 2 Year 2 Year 2 Year 2 Year 3 Year 3 Year 3 Year 3 Year 3 Year 4 Year 4 Year 4 Year 4 Year 4 Year 5 Year 5 Year 5 Year 5 Year 5
  Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total
Operating Cash Inflows
+ Net Sales809.5521.052.2721.348.1351.563.5964.773.5551.774.3811.950.4862.298.0022.618.6528.641.5202.984.2433.211.4743.477.1123.926.54213.599.3714.200.5324.562.2044.786.5005.261.78918.891.025
+ Commission Income from A/C sales00066.50066.500000220.000220.00000069.20069.200000229.000229.000
- Accounts Receivable(11.784)(16.124)(10.817)(8.545)(47.271)(11.439)(8.319)(23.740)(14.383)(57.081)(18.243)(15.177)(5.911)(27.751)(67.082)(10.424)(20.922)(2.414)(27.048)(60.807)
1 Net Operating Cash Inflows797.7681.036.1481.337.3181.621.5504.792.7851.762.9421.942.1672.274.2612.824.2698.803.6392.966.0003.196.2973.471.2023.967.99113.601.4904.270.1074.541.2834.784.0865.463.74119.059.218
Operating Cash Outflows
+ Cost of Goods Sold593.466788.468995.4691.128.9383.506.3411.291.4511.473.7651.701.4721.854.4856.321.1532.113.7062.388.7992.592.6232.773.9389.869.0652.970.3033.340.9823.469.1373.694.78613.475.207
+ General & Administrative Expenses149.140143.640155.640171.190619.610184.042178.542178.542182.542723.668195.678190.178190.178194.278770.312208.099202.599202.599207.099820.397
+ Marketing Expenses41.71466.39442.10711.568161.78321.480166.62132.51012.503233.11412.111119.8842.65152.384187.03122.342173.99832.75412.797241.892
+ Selling Expenses17.32720.84517.95619.32175.44914.57519.11724.60725.49183.78924.22221.17726.33823.03094.76723.10525.58719.12232.389100.203
+ Taxes212.895233.931280.274356.9121.084.012148.768319.890435.270748.9511.652.879424.137552.309632.753919.6862.528.885565.244765.1968112.6491.277.4673.490.557
- Accrued Taxes(17.614)(12.541)(312)51.41220.94430.487(128.303)(14.078)(140.706)(252.600)65.08614.895(20.893)(86.330)(27.241)6.97810.584(8.961)(169.345)(160.784)
- Accounts Payable(6.969)(96.986)0(96.986)(200.940)(23.247)0(102.798)(102.798)(220.843)(22.995)(108.630)0(106.630)(236.256)(17.991)(108.879)0(108.879)(235.749)
2 Total Operating Cash Outflows989.9591.143.7511.491.1341.642.3545.267.1981.867.5542.029.6322.255.5252.580.4488.533.1602.811.9463.180.5133.423.6493.770.35513.106.5633.778.0814.410.0674.597.2814.946.31417.731.744
3 Net Operating Cash Flow (Item 1 - Item 2)(192.191)(107.603)(153.816)(20.803)(474.414)95.387(87.465)18.736243.821270.479154.05415.68447.553197.636414.927492.027131.215186.805517.4271.327.474
Priority Outflows
+ Debt Repayment for Aircraft LLP2.785.0002.785.0002.785.0002.785.00011.140.0001.392.5002.785.0002.785.0004.177.50011.140.0002.785.0002.785,0002.785.0004.177.50012.532.5002.785.0002.785.0002.785.0004.177.50012.532.500
+ Trustee Expense7.5007.5007.5007.50030.0007.5007.5007.5007.50030.0007.5007.5007.5007.50030.0007.5007.5007.5007.50030.000
+ Interest Expense000003.3335.0005.0005.00018.3336.6677.5007.5007.50029.16710.83312.50012.50012.50048.333
+ VAT Payment(4.727)000(4.127)109.576000109.576211.498000211.498355.062000356.062
+ Lease Payments1.2291.2291.2291.2294.9141.2901.2901.2901.2905.1601.3541.3541.3541.3545.4181.4221.4221.4221.4225.689
4 Total Priority Outflows2.789.0012.793.7292.793.7292.793.72911.170.1871.514.1992.798.7902.798.7904.191.29011.303.0693.012.0192.801.3542.801.3544.193.85412.808.5833.159.8172.806.4222.806.4224.198.92212.971.584
Discretionary Outflows
+ Startup Expenses00000000000000000000
+ Year End Bonus 215.61600015.616132.490000132.490202.019000202.019309.086000309.086
5 Total Discretionary Outflows15.61600015.616132.490000132.490202.019000202.019309.086000309.086
Financial Flows
- Founding of Aircraft LLPs0(1.500.000)0(1.500.000)(3.000.000)00(1,500.000)(1.500.000)(3.000.000)0(1.500.000)0(1.500.000)(3.000.00)0(1.500.000)0(1.500.000)(3.000.000)
+ Sale of Interest in Aircraft LLPs4.000.0004.000.0004.000.0004.000.00016.000.0002.050.0004.100.0004.100.0006.150.00016.400.0004.200.0004.200.0004.200.0006.300.00018.900.0004.300.0004.300.0004.300.0006.450.00019.350.000
+ Debt Instruments00000000000000000000
+ Stock Securities00000000000000000000
+ Interest received22.80733.64732.59340.782129.82944.11450.21258.18369.969222.47871.86990.26995.145113.484370.767122.9821404816157.974172.016593.787
6 Total Financial Flows4.022.8072.533.6474.032.5932.540.78213.129.8292.094.1144.150.2122.658.1834.719.96913.622.4784.271.8692.790.2694.295.1454.913.48416.270.1674.422.9822.940.8164.457.9745.122.01616.943.787
Net change in Cash & Marketable Securities
+ Net Operating Cash Flow (Item 3)(192.191)(107.603)(153.816)(20.803)(474.414)95.387(87.465)18.736243.821270.479154.05415.68447.553197.636414.927492.027131.215186.805517.4271.327.474
- Priority Outflows (Item 4)(2.789.001)(2.793.729)(2.793.729)(2.793.729)(11.170.187)(1.514.199)(2.798.790)(2.798.790)(4.191.290)(11.303.069)(3.012.019)(2.801.354)(2.801.354)(4.193.854)(12.808.583)(3.159.817)(2.806.422)(2.806.422)(4.198.922)(12.971.584)
- Discretionary Flows (Item 5)(15.616)000(15.616)(132.490)000(132.490)(202.019)000(202.019)(309.086)000(309.086)
+ Financial Flows (Item 5)4.022.8072.533.6474.032.5932.540.78213.129.8292.094.1144.150.2122.658.1834.719.96913.622.4784.271.8692.790.2694.295.1454.913.48416.270.7674.422.9822.940.8164.457.9745.122.01616.943.787
7 Net Change In Cash and Marketable Securities1.025.999(367.685)1.085.049(273.750)1.469.613542.8121.263.957(121.871)772.5002.457.3981.211.8854.5091.541.343917.2653.675.0931.446.105265.6091.838.3571.440.5214.990.592
End of Period Cash Balance2.377.6702.009.9863.095.0342.821.2842.821.2843.364.0964.628.0534.506.1935.278.6835.278.6836.490.5686.495.1678.036.5108.953.7758.953.77510.399.88010.665.48912.503.84613.944.36713.944.367

8.1.7 Scenario & Ratio Analysis

Scenarios


Eurosky
Table of ContentsAppendices
1. Executive Summary
2. Market Analysis
3. Products
4. Company
5. Marketing and Sales
6. Operations
7. Financials
Pro-forma Financials
Resumes of the Founder Team
Board of Advisors
Key Advisors
The information and ideas herein are the confidential,
proprietary, sole, and exclusive property of Eurosky's founders.