.. _.._. _...._. . "'I"""' Projected Costs: Demolition of Newville Centre Arena $65,000 Land for new arena $840,000 Fee for initial high level design (already paid) $58,000 Architectural fees $410,000 Municipal building fees $50,000 Cost to build arena (including seating, concessions, event rooms, etc.) $28,000,000 Equipment and furniture $1,000,000 Future Values'\": Land Arena Equipment 8: Furniture Expected useful life N/A 30 years 10 years Expected value in 20 years $2,000,000 $5,000,000 nil CCA rate N/A 4% 20% * Assumes normal maintenance. Equipment and furniture would require replacement every 10 years. The annual operating and administration costs of the new arena are expected to be $420,000 higher than the current costs, and the annual maintenance and repairs expenses would be 10% higher. DeVue's team has prepared the following estimates under two different pricing scenarios if a new arena is built: Scenario 1 No Scenario 2 Price Change Increase Prices Average ticket price: Pre-season 3: season single game tickets $25.00 $30.00 Season tickets $21.25 $25.50 Playoffs $25.00 $30.00 Box rental price per game (including playoffs} Number of boxes rented Average attendance per game: Pre-season 8: season single game (walk-up} Pre-season 8: season season tickets Playoffs Average concession sales per game: Pre-season 8L season $77,000 $70,000 Playoffs $96,000 $96,000 Assets 2008 2007 2006 2005 2004 Current Assets: Cash $ 805 $ 521 $ 402 $ 806 $ 549 Accounts receivable 61 69 92 80 81 Inventory 27 26 24 22 18 Deposits and prepaid expenses 60 66 65 61 60 953 682 583 969 708 Capital Assets: Property, plant and equipment 6,425 6,435 6,499 6,484 6,460 Less: Accumulated amortization (5,195) (4,919) (4,642) (4,363) (4.084) 1,230 1,516 1,857 2,121 2,376 Land 500 500 500 500 500 1,730 2,016 2,357 2,621 2,876 Total Assets $2.683 $2.698 $2.940 $3.590 $3.584 Liabilities and Shareholders' Equity Current Liabilities: Accounts payable and accrued liabilities S 589 $ 569 $ 486 $ 589 $ 574 Current portion of mortgage payable 301 301 301 301 301 890 870 787 890 875 Mortgage payable (net of current portion) 96 397 698 999 1.300 Shareholders' Equity: Common shares 300 300 300 300 300 Retained earnings 1.397 1.131 1.155 1.401 1.109 1,697 1,431 1,455 1,701 1,409 Total Liabilities and Shareholders' Equity $2.683 $2.698 $2.940 $3.590 $3.5842008 2007 2006 2005 2004 Revenues: Tigers ticket sales $4,292 $3,888 $3,574 $4,372 $4,735 Box rentals 282 264 252 288 312 Arena and event room rentals 1,155 1,099 1,065 998 995 Concessions/catering sales 2,292 2,100 1,956 2,263 2,417 Other revenue 549 551 550 553 555 8,570 7,902 7,397 8,474 9,014 Expenses: Concession/catering supplies 458 420 391 453 483 Variable part-time wages 722 662 616 713 761 Player salaries and benefits 1,566 1,553 1,544 1,525 1,482 Playoff bonuses 100 50 0 120 190 Tigers operations 776 745 731 774 801 Arena operations 838 830 825 820 818 Arena maintenance and repairs 120 110 100 94 90 Marketing and selling 555 552 549 535 530 General and administration 1,980 1,954 1,939 1,910 1,904 Municipal taxes 150 145 140 137 135 Interest - long term 20 35 50 65 80 Amortization 276 277 279 279 278 7.561 7.333 7.164 7,425 7.552 Income before income taxes 1,009 569 233 1,049 1,462 Income taxes 343 193 79 357 497 Net income $ 666 $ 376 $ 154 $ 692 965 Opening retained earnings $1,131 $1,155 $1,401 $1,109 $ 544 Net income 666 376 154 692 965 Dividends (400) (400) (400) (400) (400) Ending retained earnings $1,397 $1 131 $1 155 51401 $1 109
