EFTA00730226.pdf

South Padre Island Golf Club Unit Sales per Year 250 200 150 100 50 0 : In I I I I 1 1 1 1 1 [ 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 K N of Vertical Units Sold La N of Lots Sold EFTA00730226 South Padre Unit Sales and Project Cash Flow 600 500 400 300 200 100 0 (100) (200) (300) „A--A • • • 200S 2006 2007 2008 2009 2010 201 2012 2013 2014 2015 2016 2017 2018 2019 It of Lots Sold ME If of Vertical Units Sold —sk.— Project Cash Flow (0,000's) EFTA00730227 South Padre Island Summary of Cash Flow 2005 2006 Actual 2007 2008 2009 Estimate 2010 2011 2012 2013 2014 Projected 2015 2016 2017 2018 2019 2020 2011-2020 Total Cash Flow after Debt Cash Flow from Real Estate (289.352) 650.473 624.598 547.066 840.961 586.114 1.057.051 1.353.796 1.401.373 1.449.807 8.221.888 Cash Flow from Got (297.965) (287.040) (268.062) (219.887) (163.527) (100.118) (68.401) (4.193) 63.929 136.142 (1.209.124) Total project cash flow 4.301000 5221000 1,426.000 (2077.190) (944.126) (1.400,000) (587,317) 363,433 356.536 327.178 677,434 485,996 988,680 1,349,603 1,465,302 1,585.949 7,012,765 Cumulative 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total 0 of Lots Sold 115 82 30 4 10 8 16 25 30 30 34 34 34 34 34 34 313 0 of Venical Units Sok) 82 93 96 20 10 10 20 38 35 34 38 38 38 38 38 38 365 Total 0 of Units Sold 197 175 126 24 20 18 36 63 65 64 72 72 72 72 72 72 678 Cumulative 4 of units sold 397 594 769 895 919 939 957 993 1.056 1.121 1.185 1.257 1.329 1.401 1.473 1.545 1.617 South Padre Fee 84.214 319.544 302.198 348231 410.457 440.095 426.583 423.931 436.649 449.748 3.641.650 Constructko 120.000 120.000 120.000 121030 120.000 120.000 120.000 120.000 120.000 120.030 1.200.000 Project Management 141.181 145.416 65.920 154.272 158.900 163.667 168.577 173.635 178.844 184.209 1.534.623 Gob Management 997.332 1.482.335 1.065.624 546.721 307.469 270.003 345.395 584.961 488.118 622.503 689.357 723.763 715.161 717.566 735.493 753.957 6.376.273 5 3J36 332 6.711.335 2.491.624 (1.530.469) (636.657) (1.130.000) (241.922) 948.393 844.654 949.681 1.366.791 1209.759 1.703.811 2.067.169 2.200.795 2.339.906 13.389.038 Cash From South Padre 5 305 332 12.017.667 14.509.291 12.978.822 12,342.165 11.212.165 10.970.243 11.918.636 12.763.291 13.712.972 15.079.763 16289.522 17.993.333 20.060.502 22.261.297 24.601203 Cumulative 1) At the end of 2020. South Padre has approximately 850 developable acre remaining . EFTA00730228 South Padre Island - Residential Cash Flow 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011.2020 Total Units sold Lots Houses /Villas:Condos 18 20 25 38 30 35 30 34 34 38 34 38 34 38 34 38 34 38 34 38 307 355 Total 38 63 65 64 72 72 72 72 72 72 662 Revenue Lots 874.000 1,364,750 1.692.290 1.793.827 2.082.807 2.118.210 2.154.676 2.192,235 2.230.921 2,270,768 18.774,484 Houses iVillasiCcados 4.291.857 7,560,494 7.054.215 7.117.775 8.036.648 8.277.747 8.526.079 8.781,862 9.045.318 9,316,677 78.008.673 Bulk Land Sales 198,919 204.886 211.033 217.364 223.885 230.601 237.519 244.645 251,984 2.020.837 Total 5.165.857 9,124,163 8.951.392 9.122.635 10.336.819 10.619.842 10.911.357 11211,616 11.520.884 11,839,429 98.803.994 Less Commissions & Closing Costs -4.5% (232.464) (410,587) (402.813) (410.519) (465.157) (477.893) (491.011) (504.523) (518.440) (532,774) (4,446,180) Misc revenue-rental units & HOA fees. etc. 138.000 99,000 60.000 61.800 63.654 65.564 67.531 69.556 71.643 73,792 770.540 Revenue after Closing Costs 5.071.394 8,812,576 8.608.579 8.773.917 9.935.316 10.207.513 10.487.876 10.776,650 11.074.087 11.380.447 95.128,354 Development Costs Master Site Improvements. incl Land Holly Beach Road 300.000 300.000 Additional Golf Course ( 9 Holes) 125.000 375.000 375.000 375.000 250.000 1.500.000 Office: Club Subtotal 125.000 375.000 375.000 675.000 250.000 1.800.000 Lot Construction Costs 238,162 436.348 561.989 659.920 679.717 700.109 721.112 742.745 765,028 5.505.130 Vertical Construction Costs, incl pads 1.403.563 5,087,574 4.475.292 4.866.854 5.806.026 5.980.207 6.159.613 6.344,402 6.534.734 6,730,776 53,389,040 Total Development Costs 1.403.563 5,325,736 5.036.640 5.803.843 6.840.946 7.334.924 7.109.722 7.065,514 7.277.479 7,495203 60.694.170 Operating Expenses General & Administrative. incl cons't dept (1) 871.154 802,289 826.357 851.148 876.682 902.983 930.072 957.975 986.714 1,016,315 9.021.689 Sales & Marketing. ind SPI Realty net 507.690 522,921 538.608 554.767 571.410 588.552 606.208 624.395 643.127 662,420 5.820.097 Patio Repairs 100.000 100.000 Total Operating Expenses 1.478.844 1.325209 1.364.966 1.405.915 1.448.092 1.491.535 1.536.281 1.582,369 1.629.840 1.678.736 14.941.786 Total Expenses 2.882.407 6,650,945 6.401.606 7.209.758 8.289.038 8.826.459 8.646.003 8.647,883 8.907.319 9,174,539 75.635,956 Net Cash Flow before Debt 2.188.987 2,161,631 2.206.973 1.564.159 1.646.278 1.381.054 1.841.873 2.128,767 2.166.768 2,205,908 19.492.398 Cumulative 2.188.987 4250,617 6.557.591 8.121.750 9.768.028 11.149.082 12.990.955 15.119,722 17.286.490 19,492298 Land Debt Beginning Balance 4.347.308 4,216,952 3.992.154 3.755.481 3.514.558 3.243.000 2.971.443 2.699,885 2.428.327 2,156.770 Additions to PrinclPal Interest -6.0 +1% 304.312 295,187 279.451 262.884 246.019 227.010 208.001 188.992 169.983 150,974 2.332.811 Repayment ol Principal ( $10.000 per acre) 130.356 224,798 236.673 240.923 271.558 271.558 271.558 271.558 271.558 271,558 2.462.096 Ending Balance 4.216.952 3,992,154 3.755.481 3.514.558 3.243.000 2.971.443 2.699.885 2.428,327 2.156.770 1,885,212 Development Debt Beginning Balance 5.965.347 3,821,676 2.830.503 1.764.252 1.250.965 963.225 666.853 361.589 47.168 (276,686) Additions to PnnaPal 1.403.563 5,325,736 4.911.640 5.428.843 6.465.946 6.659.924 6.859.722 7.065,514 7.277.479 7,495,803 58.894.170 Interest included in Development Costs 100.000 100.000 Repayment of Principal 960W4 3.547234 6.316.909 5.977.891 5.942.130 6.753.686 6.956.296 7.164.985 7.379.935 7.601.333 7.829.373 65.469,773 Ending Balance 3.821.676 2,830,503 1.764.252 1.250.965 963.225 666.853 361.589 47.168 (276.686) (610,255) Cash Flow after Debt (289.352) 650.473 624,598 547.066 840.961 586.114 1.057.051 1.353.796 1,401,373 1.449.807 8.221,888 Cumulative (289.352) 361.121 985.719 1.532.785 2.373.746 2.959.860 4.016.912 5.370.708 6,772,081 8.221,888 Notes: (1)80% of the Construction Department is moved to the cost of units in 2011 and 2012. EFTA00730229 South Padre Island - Assumptions Bulk Sales 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total # of acres sold pnce per acre $257.500 0.75 $265,225 0.75 $273.182 0.75 $281.377 0.75 $289.819 0.75 $298.513 0.75 4307.468 0.75 $316.693 0.75 $326.193 0.75 $335,979 7 Lots Lakewood Lots 2 # of lots sold Average Sales Price $32.000 # of lots developed Average Development Cost Release price 13.750 Inventory 12131 3 Density 3.2 0.6 a of acres sold 0.6 Cumulative Small Las - 65 x 125 5 15 20 20 22 22 22 22 22 22 192 # of lots sold Average Sales Price 445.000 $46,350 $49,131 $52,079 453.641 $55.250 $56,908 $58.615 $60.374 $62,185 # of lots developed 15 20 20 22 22 22 22 22 22 187 Average Development Cost $15.415 $15,877 $16.354 $16.844 417.350 $17.870 418.406 $18.959 $19.527 $20,113 Release price (1 Free Lot) 17.363 17,884 18.420 18.973 19.542 20.128 20.732 21.354 21.995 22,655 Inventory 1231 9 4 4 4 4 4 4 4 4 4 4 Density 3.2 it of acres sold 1.6 4.7 6.3 6.3 6.9 6.9 6.9 6.9 6.9 6.9 Cumulative 1.6 6.3 12.5 18.8 25.6 32.5 39.4 46.3 53.1 60.0 Sc Lots 80 x ISO 9 10 10 10 12 12 12 12 12 12 111 # of lots sold Average Sales Price $65.000 $66,950 $70,967 975,225 75.225 75.225 75.225 75.225 75.225 75,225 # of lots developed 5 10 12 12 12 12 12 12 87 Average Development Cost $20.600 $21,218 421.855 $22.510 423.185 $23.881 $24,597 $25.335 $26.095 $26,878 Release price 32.600 33,578 34.585 35.623 36.692 37.792 38.926 40.094 41297 42,536 Inventory 12/31 33 24 14 9 9 9 9 9 9 9 9 Density 1.3 it of acres sold 6.9 7.7 7.7 7.7 9.2 9.2 9.2 9.2 9.2 9.2 85 Cumulative 6.9 14.6 22.3 30.0 39.2 48.5 57.7 66.9 76.2 85.4 it of lots sold 16 25 30 30 34 34 34 34 34 34 305 Cumulative 16 41 71 101 135 169 203 237 271 305 it of acres sold in lots 8 12 14 14 16 16 16 16 16 16 145 Cumulative 8 21 35 49 65 81 97 113 129 145 Average Lot Price 54.625 54,590 56.410 59.794 61.259 62.300 63.373 64.477 65,615 66,787 EFTA00730230 South Padre Island - Assumptions Vertical 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Total Casitas ( 5 unds. 14 paths it of units sold 3 12 12 12 14 14 14 14 14 14 123 Average Sales Price $113.000 $116,390 $123.373 $130,776 $134,699 $138.740 4142.902 $147.189 $151,605 $156,153 it of units developed 12 12 12 14 14 14 14 14 14 120 Average Devebpment Cost $88.679 $91,339 $94,080 $96,902 $99,809 $102.803 4105.887 8109.064 4112.336 $115,706 Release price 96.293 99,182 102.157 105.222 108.379 111.630 114.979 118.428 121.981 125,641 Inventory 12/31 5 2 2 2 2 2 2 2 2 2 2 Density 5 of acres sold 0.6 2.4 2.4 2.4 2.8 2.8 2.8 2.8 2.8 2.8 25 Cumulative 0.6 3.0 5.4 7.8 10.6 13.4 16.2 19.0 21.8 24.6 Was (5 units. 44 pedal 8 12 12 12 14 14 14 14 14 14 128 it of units sold Average Sales Price $182.857 $188,343 $199,643 $211,622 $217,971 $224.510 $231,245 4238.182 $245,328 $252,688 it of units developed 4 12 12 12 14 14 14 14 14 14 124 Average Devebpment Cost $124.686 $128,427 $132.279 $136.248 $162,684 $167.564 4172.591 4177.769 $183,102 $188,595 Release price $135.080 $139,132 $143,306 $147.606 $152,034 $156.595 $161,293 §166.131 4171.115 $176249 Inventory 12,31 5 I 1 I 1 1 1 1 1 1 1 Density 4 p of acres sold 2.0 3.0 3.0 3.0 3.5 3.5 3.5 3.5 3.5 3.5 32 Cumulative 2.0 5.0 8.0 11.0 14.5 18.0 21.5 25.0 28.5 32.0 Marion& -II unit, 24 nada) 3 8 8 10 10 10 10 10 10 10 89 it of units sold Average Sales Price $260.000 $267,800 $283.868 $300,900 $309,927 $319.225 4328.802 8338.666 4348.826 $359,290 it of units developed I 8 8 10 10 10 10 10 10 10 87 Average Devebpment Cost $162.189 $167,055 $172.066 $206.906 $213,113 $219.506 4226.091 4232.874 4239.860 $247,056 Release price $200.000 $206,000 $212.180 $217.251 $223,769 $230.482 4237.396 4244.518 4251.853 $259,409 Inventory 12/31 3 I 1 I I 1 1 1 1 1 1 Density 2.5 p of acres sold 1.2 3.2 3.2 4.0 4.0 4.0 4.0 4.0 4.0 4.0 36 Cumulative liKlagi - COS cre it of units sold 1.2 6 4.4 6 7.6 3 11.6 15.6 19.6 23.6 27.6 31.6 35.6 Is Average Sales Price $285.000 $293,550 $302.357 $311.427 it of units developed 4 6 2 12 Average Devebpment Cost $185,658 $185,658 $191,227 $196.964 Release price $195.000 $200,850 $206.876 $213.082 Inventory 12/31 3 I 1 Density 8 p of acres sold 0.8 0.8 0.4 2 Cumulative 0.8 1.5 1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.9 it of vertical units sold 20 38 35 34 38 38 38 38 38 38 355 Cumulative 20 58 93 127 165 203 241 279 317 355 it of acres sold in vertical 5 9 9 9 10 10 10 10 10 10 94 Cumulative 5 14 23 32 43 53 63 73 84 94 Average Unit Price 214.593 198,960 201.549 209.346 211.491 217.835 224.371 231.102 238.035 245,176 EFTA00730231 South Padre Island Championship Course Base Case Budgeted 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2020-2011 Total Public Rounds 22.095 22.595 22.795 22.995 23.195 23.395 23.000 23.000 23.000 23.000 Member Rounds 10.400 9.160 9.640 10.936 12.376 13.912 15.544 17.272 19.000 20.728 Total Paid Rounds 32.495 31.755 32.435 33.931 35.571 37.307 38.544 40.272 42.000 43.728 Average Rate $37.08 $39.93 $40.91 $41.47 $42.03 $42.59 $43.00 $43.53 $44.12 $44.77 Revenue Greens Fees 1.009.690 1,063,515 1,105,117 1.148.257 1.192.991 1.239.376 1.255.004 1.292.654 1.331.434 1.371.377 12.009,417 Annual Membership Income 195.080 204,505 221.678 259.024 301.925 349.579 402.306 460.440 521.701 586.223 3.502,461 Trail and Cart Fees 63.198 63.612 66.923 72.110 77.863 84.113 89.509 96.328 103.475 110.964 828,094 Other Income 110.087 113,390 116.791 120.295 123.904 127.621 131.450 135.393 139.455 143.639 1.262,024 Total Course Income 1.378.055 1,445,021 1,510,508 1.599.686 1.696.684 1.800.690 1.878.269 1.984.816 2.096.065 2.212.202 17.601,995 Pro Shop Sales 244.315 245,914 258.715 278.767 301.008 325.170 346.030 372.389 400.019 428.971 3.201.299 Pro Shop Cost of Sales (168.221) (169,322) (178,136) (191.943) (207.257) (223.893) (238.256) (256.406) (275.430) (295.365) (2.204.227) Pro Shop Other Expenses (130.137) (134,041) (138,062) (142.204) (146.470) (150.864) (155.390) (160.052) (164.854) (169.799) (1.491,875) Net Pro Shop (54.043) (57,449) (57.483) (55.380) (52.719) (49.588) (47.616) (44.068) (40.264) (36.192) (494,803) Food & Beverage Sales 298.661 300,615 316.264 340.777 367.965 397.501 423.002 455.225 489.000 524.393 3.913,404 Food & Bev. Cost of Sales (129.177) (130,022) (136,791) (147.393) (159.153) (171.927) (182.957) (196.894) (211.503) (226.811) (1.692,627) Food & Bev. Other Exp. (193.016) (198,806) (204,771) (210.914) (217.241) (223.758) (230.471) (237.385) (244.507) (251.842) (2.212,712) Net Food & Beverage (23.532) (28.213) (25.297) (17.530) (8.428) 1.815 9.574 20.945 32.991 45.740 8.064 Adjusted Gross Revenue 1.300.480 1,359,358 1,427,728 1.526.777 1.635.537 1.752.918 1.840.226 1.961.693 2.088.791 2.221.750 17.115.257 Expenses Golf Maintenance/ Additional Grow-In 662.967 682,856 703.342 724.442 746.175 768.560 791.617 815.366 839.827 865.022 7.600,174 Clubhouse Operations 69.340 71.420 73.563 75.770 78.043 80.384 82.796 85.279 87.838 90.473 794,905 Carts/Range/Bag Room 190.604 196,322 202.212 208.278 214.526 220.962 227.591 234.419 241.451 248.695 2.185,061 G & A 472.217 486,384 500.975 516.004 531.484 547.429 563.852 580.767 598.190 616.136 5.413,439 Marketing 62.136 64.000 65.920 67.898 69.935 72.033 74.194 76.419 78.712 81.073 712,320 Management Fee 141.181 145,416 149.779 154.272 158.900 163.667 168.577 173.635 178.844 184.209 1.618,482 Taxes & Insurance (incl in G&A) Project Level Allocation Total Expenses 1.598.445 1,646,398 1,695,790 1.746.664 1.799.064 1.853.036 1.908.627 1.965.886 2.024.862 2.085.608 18.324,381 Operating Net Cash Flow (297,965) (287,040) (268,062) (219,887) (163,527) (100,118) (68,401) (4,193) 63,929 136,142 (1,209,124) Depreciation (140.184) (125,000) (125,000) (125.000) (125.000) (125.000) (125.000) (125.000) (125.000) (125,000) (1.265.184) Projected profit or (Loss) (438,149) (412,040) (393,062) (344,887) (288,527) (225,118) (193,401) (129,193) (61,071) 11,142 (2,474,308) EFTA00730232 Assumptions: 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Outside Average Rate $45.70 $47.07 $48.48 $49.94 $51.43 $52.98 $54.57 $56.20 $57.89 $59.63 Cart and Trail Fees per Round $1.94 $2.00 $2.06 $2.13 $2.19 $2.25 $2.32 $2.39 $2.46 $2.54 Card Member - Assumes 30% of new purchasers join # of Card Members Average 112.5 114.5 120.5 136.7 154.7 173.9 194.3 215.9 237.5 259.1 Price of Memberships Average $1.734.04 $1.786.07 $1,839.65 $1.894.84 $1.951.68 $2.010.23 $2.070.54 $2.132.66 $2.196.64 $2.262.53 Round per Member Average 92.4 80.0 80.0 80.0 80.0 80.0 80.0 80.0 80.0 80.0 Pro Shop Sales per Round $7.52 $7.74 $7.98 $8.22 $8.46 $8.72 $8.98 $9.25 $9.52 $9.81 Pro Shop Cost of Sales 69% 69% 69% 69% 69% 69% 69% 69% 69% 69% Food 8, Bev. Sales Per Round $9.19 $9.47 $9.75 $10.04 $10.34 $10.65 $10.97 $11.30 $11.64 $11.99 F & B Cost of Sales 43% 43% 43% 43% 43% 43% 43% 43% 43% 43% General Inflation 3.00% Inflation on Membership 3.00% Total EFTA00730233