EXHIBIT 99.(c.13)
PRO FORMA FINANCIAL STATEMENTS FOR MASS. TRACK SLOT FACILITIES Preliminary
OVERVIEW / SUMMARY
latest version:
1,000 slots (@$350/day), 35% retention rate, $20mn cash invested in everything
but slots, those assumed to be leased at 5% of gross, and the existing
Wonderland property included on the balance sheet at $13mn, for a total asset
base of $25mn (new construction is $5.0mn):
Exhibit: A1 Balance Sheet ($25 million invested)
B1 Income Statement (35% retention) IRR = 3.6%
C1 Income Statements for Other Operations
Notes to Financial Projections
the following include an up-front license fee payment of $25 million (amortized
over 5 years):
A2 Balance Sheet ($50 mn invested, inc $25mn fee)
B2-35 Retention rate = 35% IRR = -9.2%
B2-40 Retention rate = 40% IRR = 4.5%
B2-45 Retention rate = 45% IRR = 16.7%
B2-46 Retention rate = 46% IRR = 19.0%
B2-47 Retention rate = 47% IRR = 21.3%
the following assume win at $400/slot/day (up from $350):
B3-35 Retention rate = 35% IRR = -4.9%
B3-40 Retention rate = 40% IRR = 9.9%
B3-43 Retention rate = 43% IRR = 18.0%
B3-44 Retention rate = 44% IRR = 20.7%
B3-45 Retention rate = 45% IRR = 23.2%
6/2/03 CONFIDENTIAL TREATMENT CUMMINGS ASSOCIATES
B1357100.1
PRO FORMA FINANCIAL STATEMENTS FOR MASS. TRACK SLOT FACILITY Preliminary
EXHIBIT A1: BALANCE SHEET ($25 MILLION INVESTED [+FEE])
(At full-scale opening, in millions of 2003 dollars)
ASSETS:
Cash / Working Capital $ 2.5
Existing Land, Buildings, Etc. na
less accumulated depreciation na
-------
Net Existing Property $ 13.0(1)
New Construction for Slots $ 5.0
Slot Machines (1,000) 0.0(2)
Food & Beverage Equipment 2.0
Other Equipment 3.0
Initial License Fee 0.0
-------
Total Assets $ 25.5
LIABILITIES:
Payables, etc. $ 0.5
Long-Term Debt 0.0
Equity 25.0
-------
Total Liabilities $ 25.5
(1) Contribution of existing property at appraised value of $13mn; assumed to be
recouped in "terminal value" at end of Year 5.
(2) 1000 slots assumed to be leased for 5% of gross win. Revenue projections
assume ongoing replacement at customary industry rates.
6/2/03 CONFIDENTIAL TREATMENT CUMMINGS ASSOCIATES
PRO FORMA FINANCIAL STATEMENTS FOR MASS. TRACK SLOT FACILITY Preliminary
EXHIBIT B1: INCOME STATEMENT ($25 MILLION INVESTED [W/O FEE])
($ million, based on 2003 dollars)
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
REVENUES:(1)
1,000 slots
Slot Win $350 win/slot/day $ 127.8 $ 131.6 $ 135.5 $ 139.6 $ 143.8
EXPENSES:
Not retained by operator 65.0% $ 83.0 $ 85.5 $ 88.1 $ 90.7 $ 93.5
Other deductions (0%) 0.0 0.0 0.0 0.0 0.0
Direct Payroll 7.3 7.5 7.8 8.0 8.2
Payroll Taxes & Benefits 1.8 1.9 1.9 2.0 2.1
Slot Lease Payments 6.4 6.6 6.8 7.0 7.2
Other Slot Operating Costs 3.2 3.3 3.4 3.5 3.6
Building Operating Costs 3.2 3.3 3.4 3.5 3.6
Property Tax 0.9 0.9 0.9 0.9 1.0
Advertising/Media Marketing 3.8 3.9 4.1 4.2 4.3
Promotion: Food & Beverage $ 8.3
Other Players' Club 4.5
Bussing & Other 3.8
Total Promotion ------- 16.6 17.1 17.6 18.1 18.7
Interest on Debt 0.0 0.0 0.0 0.0 0.0
Depr'n &c: Slots (3 years) $ 0.0
Bldgs & Other (20/5 years) 0.9
Initial License Fee (5 years) 0.0
Total Dep'n & Amort'n ------- 0.9 0.9 0.9 0.9 0.9
------- ------- ------- ------- -------
Total Expenses $ 127.1 $ 130.9 $ 134.8 $ 138.8 $ 143.0
------- ------- ------- ------- -------
Net Income from Slot Operations $ 0.6 $ 0.7 $ 0.7 $ 0.8 $ 0.8
Net Income / Food & Beverage(1) $ 1.7 $ 1.8 $ 1.9 $ 2.1 $ 2.3(1)
------- ------- ------- ------- -------
Consolidated Net Income Before Tax $ 2.4 $ 2.5 $ 2.6 $ 2.8 $ 3.2
Corporate Income Taxes ($ 0.7) ($ 0.7) ($ 0.8) ($ 0.9) ($ 0.9)
------- ------- ------- ------- -------
Net Income After Corporate Taxes $ 1.7 $ 1.7 $ 1.8 $ 2.0 $ 2.2
Add back: Depreciation (inc F&B) $ 1.3 $ 1.3 $ 1.3 $ 1.3 $ 1.3
Subtract: Capital Invested ($ 25.0) 0.0 0.0 0.0 13.0
(inc Terminal Value) ------- ------- ------- ------- ------- -------
Result: Net Cash Flow ($ 25.0) $ 2.9 $ 3.0 $ 3.1 $ 3.2 $ 16.5
IRR = 3.6%
(1) Food, beverage, and racing operations presented on a net basis; see Exhibit
C.
6/2/03 CONFIDENTIAL TREATMENT CUMMINGS ASSOCIATES
PRO FORMA FINANCIAL STATEMENTS FOR MASS. TRACK SLOT FACILITY Preliminary
EXHIBIT C1: INCOME STATEMENTS FOR OTHER OPERATIONS
($ million, based on 2003 dollars)
FOOD & BEVERAGE YEAR 1
Total Food Sales ("comped" amount) $ 19.2 ($ 3.8)
Total Beverage Sales ("comped" amount) 8.9 (4.5)
------- -----
Total Food & Beverage Revenues (Comps) $ 28.1 ($ 8.3)
Cost of Goods Sold $ 9.5
Direct Payroll 9.5
Payroll Taxes & Benefits 1.9
Other Operating Costs 5.2
Depreciation 0.4
-------
Total Food & Beverage Expenses $ 26.4
-------
Food & Beverage Net Income $ 1.7
6/2/03 CONFIDENTIAL TREATMENT CUMMINGS ASSOCIATES
PRO FORMA FINANCIAL STATEMENTS FOR MASS. TRACK SLOT FACILITY Preliminary
NOTES TO FINANCIAL PROJECTIONS
SLOT OPERATIONS
State + Local Tax on Win 65% x slot win
General inflation rate 3.0% per year
Cash/working capital 1.0 weeks of revenues
Slot lease rate (inc. systems) 5.0% x slot win
Revenue participation machines na
Lessor's share of such slots' revenues na
Ancillary equipment $ 3,000 per slot
Slot replacements in later years 30% each year
Payables as % of working capital 20% x working capital
Projected Total Slot jobs 242 FTE
Payroll Taxes & Benefits 25% x direct payroll
Other Slot Operating Costs 2.5% x non-leased revenue
Building Operating Costs 2.5% x slot win
Property Tax 2.0% x assets except cash
Advertising/Media Marketing 3.0% x slot win
Promotion:
Complimentary Food 20% x food sales
Complimentary Beverages 50% x beverage sales
Other Players' Club 3.5% x slot win
Bussing & Other 3.0% x slot win
Annual interest on long-term debt 10%
Combined corporate income tax rate 30% (state+federal)
FOOD & BEVERAGE OPERATIONS
Food Beverage
Total Sales 15% 7% x slot win
Cost of Goods Sold 40% 20% x gross sales
Direct Payroll 40% 20% x gross sales
Payroll Taxes & Benefits 20% 20% x direct payroll
Other Operating Costs 20% 15% x gross sales
F & B equipment $2,000 per slot
Projected Total Food & Bev jobs 378 FTE
Projected Total jobs 620 FTE
6/2/03 CONFIDENTIAL TREATMENT CUMMINGS ASSOCIATES
PRO FORMA FINANCIAL STATEMENTS FOR MASS. TRACK SLOT FACILITY Preliminary
EXHIBIT A2: BALANCE SHEET ($50 MILLION INVESTED [INC. FEE])
(At full-scale opening, in millions of 2003 dollars)
ASSETS:
Cash / Working Capital $ 2.5
Existing Land, Buildings, Etc. na
less accumulated depreciation na
-------
Net Existing Property $ 13.0(1)
New Construction for Slots $ 5.0
Slot Machines (1,000) 0.0(2)
Food & Beverage Equipment 2.0
Other Equipment 3.0
Initial License Fee 25.0
-------
Total Assets $ 50.5
LIABILITIES:
Payables, etc. $ 0.5
Long-Term Debt 0.0
Equity 50.0
-------
Total Liabilities $ 50.5
(1) Contribution of existing property at appraised value of $13mn; assumed to be
recouped in "terminal value" at end of Year 5.
(2) 1000 slots assumed to be leased for 5% of gross win. Revenue projections
assume ongoing replacement at customary industry rates.
6/2/03 CONFIDENTIAL TREATMENT CUMMINGS ASSOCIATES
PRO FORMA FINANCIAL STATEMENTS FOR MASS. TRACK SLOT FACILITY Preliminary
EXHIBIT B2-35: INCOME STATEMENT ($25MN FEE, 35% RETENTION)
($ million, based on 2003 dollars)
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
REVENUES:(1)
1,000 slots
Slot Win $350 win/slot/day $ 127.8 $ 131.6 $ 135.5 $ 139.6 $ 143.8
EXPENSES:
Not retained by operator 65.0% $ 83.0 $ 85.5 $ 88.1 $ 90.7 $ 93.5
Other deductions (0%) 0.0 0.0 0.0 0.0 0.0
Direct Payroll 7.3 7.5 7.8 8.0 8.2
Payroll Taxes & Benefits 1.8 1.9 1.9 2.0 2.1
Slot Lease Payments 6.4 6.6 6.8 7.0 7.2
Other Slot Operating Costs 3.2 3.3 3.4 3.5 3.6
Building Operating Costs 3.2 3.3 3.4 3.5 3.6
Property Tax 1.4 1.4 1.4 1.5 1.5
Advertising/Media Marketing 3.8 3.9 4.1 4.2 4.3
Promotion: Food & Beverage $ 8.3
Other Players' Club 4.5
Bussing & Other 3.8
Total Promotion ------- 16.6 17.1 17.6 18.1 18.7
Interest on Debt 0.0 0.0 0.0 0.0 0.0
Depr'n &c: Slots (3 years) $ 0.0
Bldgs & Other (20/5 years) 0.9
Initial License Fee (5 years) 5.0
Total Dep'n & Amort'n ------- 5.9 5.9 5.9 5.9 5.9
------- ------- ------- ------- -------
Total Expenses $ 132.6 $ 136.4 $ 140.3 $ 144.4 $ 148.5
------- ------- ------- ------- -------
Net Income from Slot Operations ($ 4.9) ($ 4.8) ($ 4.8) ($ 4.8) ($ 4.7)
Net Income / Food & Beverage(1) $ 1.7 $ 1.8 $ 1.9 $ 2.1 $ 2.3(1)
------- ------- ------- ------- -------
Consolidated Net Income Before Tax ($ 3.1) ($ 3.0) ($ 2.9) ($ 2.7) ($ 2.4)
Corporate Income Taxes $ 0.9 $ 0.9 $ 0.9 $ 0.8 $ 0.7
------- ------- ------- ------- -------
Net Income After Corporate Taxes ($ 2.2) ($ 2.1) ($ 2.0) ($ 1.9) ($ 1.7)
Add back: Depreciation (inc F&B) $ 6.3 $ 6.3 $ 6.3 $ 6.3 $ 6.3
Subtract: Capital Invested ($ 50.0) 0.0 0.0 0.0 13.0
(inc Terminal Value) ------- ------- ------- ------- ------- -------
Result: Net Cash Flow ($ 50.0) $ 4.1 $ 4.1 $ 4.2 $ 4.4 $ 17.6
IRR = -9.20%
(1) Food, beverage, and racing operations presented on a net basis; see Exhibit
C.
6/2/03 CONFIDENTIAL TREATMENT CUMMINGS ASSOCIATES
PRO FORMA FINANCIAL STATEMENTS FOR MASS. TRACK SLOT FACILITY Preliminary
EXHIBIT B2-40: INCOME STATEMENT ($25MN FEE, 40% RETENTION)
($ million, based on 2003 dollars)
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
REVENUES:(1)
1,000 slots
Slot Win $350 win/slot/day $ 127.8 $ 131.6 $ 135.5 $ 139.6 $ 143.8
EXPENSES:
Not retained by operator 60.0% $ 76.7 $ 78.9 $ 81.3 $ 83.8 $ 86.3
Other deductions (0%) 0.0 0.0 0.0 0.0 0.0
Direct Payroll 7.3 7.5 7.8 8.0 8.2
Payroll Taxes & Benefits 1.8 1.9 1.9 2.0 2.1
Slot Lease Payments 6.4 6.6 6.8 7.0 7.2
Other Slot Operating Costs 3.2 3.3 3.4 3.5 3.6
Building Operating Costs 3.2 3.3 3.4 3.5 3.6
Property Tax 1.4 1.4 1.4 1.5 1.5
Advertising/Media Marketing 3.8 3.9 4.1 4.2 4.3
Promotion: Food & Beverage $ 8.3
Other Players' Club 4.5
Bussing & Other 3.8
Total Promotion ------- 16.6 17.1 17.6 18.1 18.7
Interest on Debt 0.0 0.0 0.0 0.0 0.0
Depr'n &c: Slots (3 years) $ 0.0
Bldgs & Other (20/5 years) 0.9
Initial License Fee (5 years) 5.0
Total Dep'n & Amort'n ------- 5.9 5.9 5.9 5.9 5.9
------- ------- ------- ------- -------
Total Expenses $ 126.2 $ 129.8 $ 133.6 $ 137.4 $ 141.3
------- ------- ------- ------- -------
Net Income from Slot Operations $ 1.5 $ 1.7 $ 2.0 $ 2.2 $ 2.5
Net Income / Food & Beverage(1) $ 1.7 $ 1.8 $ 1.9 $ 2.1 $ 2.3(1)
------- ------- ------- ------- -------
Consolidated Net Income Before Tax $ 3.3 $ 3.5 $ 3.9 $ 4.3 $ 4.8
Corporate Income Taxes ($ 1.0) ($ 1.1) ($ 1.2) ($ 1.3) ($ 1.4)
------- ------- ------- ------- -------
Net Income After Corporate Taxes $ 2.3 $ 2.5 $ 2.7 $ 3.0 $ 3.3
Add back: Depreciation (inc F&B) $ 6.3 $ 6.3 $ 6.3 $ 6.3 $ 6.3
Subtract: Capital Invested ($ 50.0) 0.0 0.0 0.0 13.0
(inc Terminal Value) ------- ------- ------- ------- ------- -------
Result: Net Cash Flow ($ 50.0) $ 8.5 $ 8.7 $ 9.0 $ 9.2 $ 22.6
IRR = 4.5%
(1) Food, beverage, and racing operations presented on a net basis; see Exhibit
C.
6/2/03 CONFIDENTIAL TREATMENT CUMMINGS ASSOCIATES
PRO FORMA FINANCIAL STATEMENTS FOR MASS. TRACK SLOT FACILITY Preliminary
EXHIBIT B2-45: INCOME STATEMENT ($25MN FEE, 45% RETENTION)
($ million, based on 2003 dollars)
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
REVENUES:(1)
1,000 slots
Slot Win $350 win/slot/day $ 127.8 $ 131.6 $ 135.5 $ 139.6 $ 143.8
EXPENSES:
Not retained by operator 55.0% $ 70.3 $ 72.4 $ 74.5 $ 76.8 $ 79.1
Other deductions (0%) 0.0 0.0 0.0 0.0 0.0
Direct Payroll 7.3 7.5 7.8 8.0 8.2
Payroll Taxes & Benefits 1.8 1.9 1.9 2.0 2.1
Slot Lease Payments 6.4 6.6 6.8 7.0 7.2
Other Slot Operating Costs 3.2 3.3 3.4 3.5 3.6
Building Operating Costs 3.2 3.3 3.4 3.5 3.6
Property Tax 1.4 1.4 1.4 1.5 1.5
Advertising/Media Marketing 3.8 3.9 4.1 4.2 4.3
Promotion: Food & Beverage $ 8.3
Other Players' Club 4.5
Bussing & Other 3.8
Total Promotion ------- 16.6 17.1 17.6 18.1 18.7
Interest on Debt 0.0 0.0 0.0 0.0 0.0
Depr'n &c: Slots (3 years) $ 0.0
Bldgs & Other (20/5 years) 0.9
Initial License Fee (5 years) 5.0
Total Dep'n & Amort'n ------- 5.9 5.9 5.9 5.9 5.9
------- ------- ------- ------- -------
Total Expenses $ 119.8 $ 123.3 $ 126.8 $ 130.4 $ 134.1
------- ------- ------- ------- -------
Net Income from Slot Operations $ 7.9 $ 8.3 $ 8.8 $ 9.2 $ 9.6
Net Income / Food & Beverage(1) $ 1.7 $ 1.8 $ 1.9 $ 2.1 $ 2.3(1)
------- ------- ------- ------- -------
Consolidated Net Income Before Tax $ 9.6 $ 10.1 $ 10.6 $ 11.3 $ 12.0
Corporate Income Taxes ($ 2.9) ($ 3.0) ($ 3.2) ($ 3.4) ($ 3.6)
------- ------- ------- ------- -------
Net Income After Corporate Taxes $ 6.8 $ 7.1 $ 7.5 $ 7.9 $ 8.4
Add back: Depreciation (inc F&B) $ 6.3 $ 6.3 $ 6.3 $ 6.3 $ 6.3
Subtract: Capital Invested ($ 50.0) 0.0 0.0 0.0 13.0
(inc Terminal Value) ------- ------- ------- ------- ------- -------
Result: Net Cash Flow ($ 50.0) $ 13.0 $ 13.3 $ 13.7 $ 14.1 $ 27.6
IRR = 16.7%
(1) Food, beverage, and racing operations presented on a net basis; see Exhibit
C.
6/2/03 CONFIDENTIAL TREATMENT CUMMINGS ASSOCIATES
PRO FORMA FINANCIAL STATEMENTS FOR MASS. TRACK SLOT FACILITY Preliminary
EXHIBIT B2-46: INCOME STATEMENT ($25MN FEE, 46% RETENTION)
($ million, based on 2003 dollars)
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
REVENUES:(1)
1,000 slots
Slot Win $350 win/slot/day $ 127.8 $ 131.6 $ 135.5 $ 139.6 $ 143.8
EXPENSES:
Not retained by operator 54.0% $ 69.0 $ 71.1 $ 73.2 $ 75.4 $ 77.6
Other deductions (0%) 0.0 0.0 0.0 0.0 0.0
Direct Payroll 7.3 7.5 7.8 8.0 8.2
Payroll Taxes & Benefits 1.8 1.9 1.9 2.0 2.1
Slot Lease Payments 6.4 6.6 6.8 7.0 7.2
Other Slot Operating Costs 3.2 3.3 3.4 3.5 3.6
Building Operating Costs 3.2 3.3 3.4 3.5 3.6
Property Tax 1.4 1.4 1.4 1.5 1.5
Advertising/Media Marketing 3.8 3.9 4.1 4.2 4.3
Promotion: Food & Beverage $ 8.3
Other Players' Club 4.5
Bussing & Other 3.8
Total Promotion ------- 16.6 17.1 17.6 18.1 18.7
Interest on Debt 0.0 0.0 0.0 0.0 0.0
Depr'n &c: Slots (3 years) $ 0.0
Bldgs & Other (20/5 years) 0.9
Initial License Fee (5 years) 5.0
Total Dep'n & Amort'n ------- 5.9 5.9 5.9 5.9 5.9
------- ------- ------- ------- -------
Total Expenses $ 118.6 $ 121.9 $ 125.4 $ 129.0 $ 132.7
------- ------- ------- ------- -------
Net Income from Slot Operations $ 9.2 $ 9.6 $ 10.1 $ 10.6 $ 11.1
Net Income / Food & Beverage(1) $ 1.7 $ 1.8 $ 1.9 $ 2.1 $ 2.3(1)
------- ------- ------- ------- -------
Consolidated Net Income Before Tax $ 10.9 $ 11.4 $ 12.0 $ 12.7 $ 13.4
Corporate Income Taxes ($ 3.3) ($ 3.4) ($ 3.6) ($ 3.8) ($ 4.0)
------- ------- ------- ------- -------
Net Income After Corporate Taxes $ 7.6 $ 8.0 $ 8.4 $ 8.9 $ 9.4
Add back: Depreciation (inc F&B) $ 6.3 $ 6.3 $ 6.3 $ 6.3 $ 6.3
Subtract: Capital Invested ($ 50.0) 0.0 0.0 0.0 13.0
(inc Terminal Value) ------- ------- ------- ------- ------- -------
Result: Net Cash Flow ($ 50.0) $ 13.9 $ 14.2 $ 14.7 $ 15.1 $ 28.6
IRR = 19.0%
(1) Food, beverage, and racing operations presented on a net basis; see Exhibit
C.
6/2/03 CONFIDENTIAL TREATMENT CUMMINGS ASSOCIATES
PRO FORMA FINANCIAL STATEMENTS FOR MASS. TRACK SLOT FACILITY Preliminary
EXHIBIT B2-47: INCOME STATEMENT ($25MN FEE, 47% RETENTION)
($ million, based on 2003 dollars)
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
REVENUES:(1)
1,000 slots
Slot Win $350 win/slot/day $ 127.8 $ 131.6 $ 135.5 $ 139.6 $ 143.8
EXPENSES:
Not retained by operator 53.0% $ 67.7 $ 69.7 $ 71.8 $ 74.0 $ 76.2
Other deductions (0%) 0.0 0.0 0.0 0.0 0.0
Direct Payroll 7.3 7.5 7.8 8.0 8.2
Payroll Taxes & Benefits 1.8 1.9 1.9 2.0 2.1
Slot Lease Payments 6.4 6.6 6.8 7.0 7.2
Other Slot Operating Costs 3.2 3.3 3.4 3.5 3.6
Building Operating Costs 3.2 3.3 3.4 3.5 3.6
Property Tax 1.4 1.4 1.4 1.5 1.5
Advertising/Media Marketing 3.8 3.9 4.1 4.2 4.3
Promotion: Food & Beverage $ 8.3
Other Players' Club 4.5
Bussing & Other 3.8
Total Promotion ------- 16.6 17.1 17.6 18.1 18.7
Interest on Debt 0.0 0.0 0.0 0.0 0.0
Depr'n &c: Slots (3 years) $ 0.0
Bldgs & Other (20/5 years) 0.9
Initial License Fee (5 years) 5.0
Total Dep'n & Amort'n ------- 5.9 5.9 5.9 5.9 5.9
------- ------- ------- ------- -------
Total Expenses $ 117.3 $ 120.6 $ 124.1 $ 127.6 $ 131.3
------- ------- ------- ------- -------
Net Income from Slot Operations $ 10.5 $ 11.0 $ 11.5 $ 12.0 $ 12.5
Net Income / Food & Beverage(1) $ 1.7 $ 1.8 $ 1.9 $ 2.1 $ 2.3(1)
------- ------- ------- ------- -------
Consolidated Net Income Before Tax $ 12.2 $ 12.7 $ 13.4 $ 14.1 $ 14.8
Corporate Income Taxes ($ 3.7) ($ 3.8) ($ 4.0) ($ 4.2) ($ 4.5)
------- ------- ------- ------- -------
Net Income After Corporate Taxes $ 8.5 $ 8.9 $ 9.3 $ 9.8 $ 10.4
Add back: Depreciation (inc F&B) $ 6.3 $ 6.3 $ 6.3 $ 6.3 $ 6.3
Subtract: Capital Invested ($ 50.0) 0.0 0.0 0.0 13.0
(inc Terminal Value) ------- ------- ------- ------- ------- -------
Result: Net Cash Flow ($ 50.0) $ 14.8 $ 15.2 $ 15.6 $ 16.1 $ 29.6
IRR = 21.3%
(1) Food, beverage, and racing operations presented on a net basis; see Exhibit
C.
6/2/03 CONFIDENTIAL TREATMENT CUMMINGS ASSOCIATES
PRO FORMA FINANCIAL STATEMENTS FOR MASS. TRACK SLOT FACILITY Preliminary
EXHIBIT B3-35: INCOME STATEMENT ($25MN FEE, 35% RETENTION)
($ million, based on 2003 dollars)
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
REVENUES:(1)
1,000 slots
Slot Win $400 win/slot/day $ 146.0 $ 150.4 $ 154.9 $ 159.5 $ 164.3
EXPENSES:
Not retained by operator 65.0% $ 94.9 $ 97.7 $ 100.7 $ 103.7 $ 106.8
Other deductions (0%) 0.0 0.0 0.0 0.0 0.0
Direct Payroll 7.3 7.5 7.8 8.0 8.2
Payroll Taxes & Benefits 1.8 1.9 1.9 2.0 2.1
Slot Lease Payments 7.3 7.5 7.7 8.0 8.2
Other Slot Operating Costs 3.7 3.8 3.9 4.0 4.1
Building Operating Costs 3.7 3.8 3.9 4.0 4.1
Property Tax 1.4 1.4 1.4 1.5 1.5
Advertising/Media Marketing 4.4 4.5 4.6 4.8 4.9
Promotion: Food & Beverage $ 9.5
Other Players' Club 5.1
Bussing & Other 4.4
Total Promotion ------- 19.0 19.5 20.1 20.7 21.4
Interest on Debt 0.0 0.0 0.0 0.0 0.0
Depr'n &c: Slots (3 years) $ 0.0
Bldgs & Other (20/5 years) 0.9
Initial License Fee (5 years) 5.0
Total Dep'n & Amort'n ------- 5.9 5.9 5.9 5.9 5.9
------- ------- ------- ------- -------
Total Expenses $ 149.2 $ 153.5 $ 158.0 $ 162.5 $ 167.2
------- ------- ------- ------- -------
Net Income from Slot Operations ($ 3.2) ($ 3.1) ($ 3.1) ($ 3.0) ($ 2.9)
Net Income / Food & Beverage(1) $ 2.0 $ 2.1 $ 2.2 $ 2.4 $ 2.7(1)
------- ------- ------- ------- -------
Consolidated Net Income Before Tax ($ 1.2) ($ 1.0) ($ 0.8) ($ 0.5) ($ 0.2)
Corporate Income Taxes $ 0.4 $ 0.3 $ 0.2 $ 0.2 $ 0.0
------- ------- ------- ------- -------
Net Income After Corporate Taxes ($ 0.8) ($ 0.7) ($ 0.6) ($ 0.4) ($ 0.1)
Add back: Depreciation (inc F&B) $ 6.3 $ 6.3 $ 6.3 $ 6.3 $ 6.3
Subtract: Capital Invested ($ 50.2) 0.0 0.0 0.0 13.0
(inc Terminal Value) ------- ------- ------- ------- ------- -------
Result: Net Cash Flow ($ 50.2) $ 5.4 $ 5.5 $ 5.7 $ 5.9 $ 19.1
IRR = -4.9%
(1) Food, beverage, and racing operations presented on a net basis; see Exhibit
C.
6/2/03 CONFIDENTIAL TREATMENT CUMMINGS ASSOCIATES
PRO FORMA FINANCIAL STATEMENTS FOR MASS. TRACK SLOT FACILITY Preliminary
EXHIBIT B3-40: INCOME STATEMENT ($25MN FEE, 40% RETENTION)
($ million, based on 2003 dollars)
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
REVENUES:(1)
1,000 slots
Slot Win $400 win/slot/day $ 146.0 $ 150.4 $ 154.9 $ 159.5 $ 164.3
EXPENSES:
Not retained by operator 60.0% $ 87.6 $ 90.2 $ 92.9 $ 95.7 $ 98.6
Other deductions (0%) 0.0 0.0 0.0 0.0 0.0
Direct Payroll 7.3 7.5 7.8 8.0 8.2
Payroll Taxes & Benefits 1.8 1.9 1.9 2.0 2.1
Slot Lease Payments 7.3 7.5 7.7 8.0 8.2
Other Slot Operating Costs 3.7 3.8 3.9 4.0 4.1
Building Operating Costs 3.7 3.8 3.9 4.0 4.1
Property Tax 1.4 1.4 1.4 1.5 1.5
Advertising/Media Marketing 4.4 4.5 4.6 4.8 4.9
Promotion: Food & Beverage $ 9.5
Other Players' Club 5.1
Bussing & Other 4.4
Total Promotion ------- 19.0 19.5 20.1 20.7 21.4
Interest on Debt 0.0 0.0 0.0 0.0 0.0
Depr'n &c: Slots (3 years) $ 0.0
Bldgs & Other (20/5 years) 0.9
Initial License Fee (5 years) 5.0
Total Dep'n & Amort'n ------- 5.9 5.9 5.9 5.9 5.9
------- ------- ------- ------- -------
Total Expenses $ 141.9 $ 146.0 $ 150.2 $ 154.5 $ 159.0
------- ------- ------- ------- -------
Net Income from Slot Operations $ 4.1 $ 4.4 $ 4.7 $ 5.0 $ 5.3
Net Income / Food & Beverage(1) $ 2.0 $ 2.1 $ 2.2 $ 2.4 $ 2.7(1)
------- ------- ------- ------- -------
Consolidated Net Income Before Tax $ 6.1 $ 6.5 $ 6.9 $ 7.4 $ 8.1
Corporate Income Taxes ($ 1.8) ($ 1.9) ($ 2.1) ($ 2.2) ($ 2.4)
------- ------- ------- ------- -------
Net Income After Corporate Taxes $ 4.3 $ 4.5 $ 4.8 $ 5.2 $ 5.6
Add back: Depreciation (inc F&B) $ 6.3 $ 6.3 $ 6.3 $ 6.3 $ 6.3
Subtract: Capital Invested ($ 50.2) 0.0 0.0 0.0 13.0
(inc Terminal Value) ------- ------- ------- ------- ------- -------
Result: Net Cash Flow ($ 50.2) $ 10.5 $ 10.8 $ 11.1 $ 11.5 $ 24.9
IRR = 9.9%
(1) Food, beverage, and racing operations presented on a net basis; see Exhibit
C.
6/2/03 CONFIDENTIAL TREATMENT CUMMINGS ASSOCIATES
PRO FORMA FINANCIAL STATEMENTS FOR MASS. TRACK SLOT FACILITY Preliminary
EXHIBIT B3-43: INCOME STATEMENT ($25MN FEE, 43% RETENTION)
($ million, based on 2003 dollars)
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
REVENUES:(1)
1,000 slots
Slot Win $400 win/slot/day $ 146.0 $ 150.4 $ 154.9 $ 159.5 $ 164.3
EXPENSES:
Not retained by operator 57.0% $ 83.2 $ 85.7 $ 88.3 $ 90.9 $ 93.7
Other deductions (0%) 0.0 0.0 0.0 0.0 0.0
Direct Payroll 7.3 7.5 7.8 8.0 8.2
Payroll Taxes & Benefits 1.8 1.9 1.9 2.0 2.1
Slot Lease Payments 7.3 7.5 7.7 8.0 8.2
Other Slot Operating Costs 3.7 3.8 3.9 4.0 4.1
Building Operating Costs 3.7 3.8 3.9 4.0 4.1
Property Tax 1.4 1.4 1.4 1.5 1.5
Advertising/Media Marketing 4.4 4.5 4.6 4.8 4.9
Promotion: Food & Beverage $ 9.5
Other Players' Club 5.1
Bussing & Other 4.4
Total Promotion ------- 19.0 19.5 20.1 20.7 21.4
Interest on Debt 0.0 0.0 0.0 0.0 0.0
Depr'n &c: Slots (3 years) $ 0.0
Bldgs & Other (20/5 years) 0.9
Initial License Fee (5 years) 5.0
Total Dep'n & Amort'n ------- 5.9 5.9 5.9 5.9 5.9
------- ------- ------- ------- -------
Total Expenses $ 137.5 $ 141.5 $ 145.6 $ 149.8 $ 154.1
------- ------- ------- ------- -------
Net Income from Slot Operations $ 8.5 $ 8.9 $ 9.3 $ 9.8 $ 10.3
Net Income / Food & Beverage(1) $ 2.0 $ 2.1 $ 2.2 $ 2.4 $ 2.7(1)
------- ------- ------- ------- -------
Consolidated Net Income Before Tax $ 10.5 $ 11.0 $ 11.6 $ 12.2 $ 13.0
Corporate Income Taxes ($ 3.1) ($ 3.3) ($ 3.5) ($ 3.7) ($ 3.9)
------- ------- ------- ------- -------
Net Income After Corporate Taxes $ 7.3 $ 7.7 $ 8.1 $ 8.6 $ 9.1
Add back: Depreciation (inc F&B) $ 6.3 $ 6.3 $ 6.3 $ 6.3 $ 6.3
Subtract: Capital Invested ($ 50.2) 0.0 0.0 0.0 13.0
(inc Terminal Value) ------- ------- ------- ------- ------- -------
Result: Net Cash Flow ($ 50.2) $ 13.6 $ 13.9 $ 14.3 $ 14.8 $ 28.3
IRR = 18.0%
(1) Food, beverage, and racing operations presented on a net basis; see Exhibit
C.
6/2/03 CONFIDENTIAL TREATMENT CUMMINGS ASSOCIATES
PRO FORMA FINANCIAL STATEMENTS FOR MASS. TRACK SLOT FACILITY Preliminary
EXHIBIT B3-44: INCOME STATEMENT ($25MN FEE, 44% RETENTION)
($ million, based on 2003 dollars)
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
REVENUES:(1)
1,000 slots
Slot Win $400 win/slot/day $ 146.0 $ 150.4 $ 154.9 $ 159.5 $ 164.3
EXPENSES:
Not retained by operator 56.0% $ 81.8 $ 84.2 $ 86.7 $ 89.3 $ 92.0
Other deductions (0%) 0.0 0.0 0.0 0.0 0.0
Direct Payroll 7.3 7.5 7.8 8.0 8.2
Payroll Taxes & Benefits 1.8 1.9 1.9 2.0 2.1
Slot Lease Payments 7.3 7.5 7.7 8.0 8.2
Other Slot Operating Costs 3.7 3.8 3.9 4.0 4.1
Building Operating Costs 3.7 3.8 3.9 4.0 4.1
Property Tax 1.4 1.4 1.4 1.5 1.5
Advertising/Media Marketing 4.4 4.5 4.6 4.8 4.9
Promotion: Food & Beverage $ 9.5
Other Players' Club 5.1
Bussing & Other 4.4
Total Promotion ------- 19.0 19.5 20.1 20.7 21.4
Interest on Debt 0.0 0.0 0.0 0.0 0.0
Depr'n &c: Slots (3 years) $ 0.0
Bldgs & Other (20/5 years) 0.9
Initial License Fee (5 years) 5.0
Total Dep'n & Amort'n ------- 5.9 5.9 5.9 5.9 5.9
------- ------- ------- ------- -------
Total Expenses $ 136.1 $ 140.0 $ 144.0 $ 148.2 $ 152.4
------- ------- ------- ------- -------
Net Income from Slot Operations $ 9.9 $ 10.4 $ 10.9 $ 11.4 $ 11.9
Net Income / Food & Beverage(1) $ 2.0 $ 2.1 $ 2.2 $ 2.4 $ 2.7(1)
------- ------- ------- ------- -------
Consolidated Net Income Before Tax $ 12.0 $ 12.5 $ 13.1 $ 13.8 $ 14.6
Corporate Income Taxes ($ 3.6) ($ 3.7) ($ 3.9) ($ 4.1) ($ 4.4)
------- ------- ------- ------- -------
Net Income After Corporate Taxes $ 8.4 $ 8.7 $ 9.2 $ 9.7 $ 10.2
Add back: Depreciation (inc F&B) $ 6.3 $ 6.3 $ 6.3 $ 6.3 $ 6.3
Subtract: Capital Invested ($ 50.2) 0.0 0.0 0.0 13.0
(inc Terminal Value) ------- ------- ------- ------- ------- -------
Result: Net Cash Flow ($ 50.2) $ 14.6 $ 15.0 $ 15.4 $ 15.9 $ 29.5
IRR = 20.7%
(1) Food, beverage, and racing operations presented on a net basis; see Exhibit
C.
6/2/03 CONFIDENTIAL TREATMENT CUMMINGS ASSOCIATES