BUSINESS PLAN
NAFTC STUDIOS
November 2007
Mr. Jamaal Jime Shaban, Director
North American Free Trade Consultants Inc.
1529 Heatherglen Dr.
Tecumseh, Ontario, Canada
N8N 5B3
Jim_shaban@naftcstudios.com
www.naftcstudios.com
1 519 739-3912
1 519 739-3376 Fax
1 519 818-7342 Mobile
NAFTC Studios
Business Plan November 2007
Page 1
Executive Summary
This business plan encompasses two businesses,
1. North American Free Trade Consultants Inc,
a. shareholder Mr. Jim Shaban
b. owner of the land
2. NAFTC Studios
a. shareholder Mr. Jim Shaban and others
b. owner and operator of the film stages
c. lessee and tenant of the land
North American Free Trade Consultants Inc., is only a holding company for the
land therefore the basis of this business plan surrounds NAFTC Studios ability to
penetrate the film industry market place.
NAFTC Studios is a new multimedia production facility being built in Windsor /
Essex County. The film production industry in Ontario is currently centered in the
greater Toronto area where they produce approximately 26% of films made in
Canada. The existence of the largest skilled labour force for production of film and
television in Canada is located right here in Ontario. This will allow NAFTC
Studios to tap into this market place and become a leader within it.
The founding president of the company Mr. Jim Shaban has spent over 20 years in
the film and entertainment industry. It is his vision to create NAFTC Studios as a
purpose built studio complex with multiple production stages, sound stages and
post production offices that will not only entice the producers to film here but will
more importantly allow them the creativity required to make high quality films and
keep within their budgets and timelines. Many existing stages located throughout
Canada are renovations of existing structures that bring with them certain
challenges that producers must adapt to, to be effective.
NAFTC Studios
Business Plan November 2007
Page 2
Why locate here? To be successful in this industry NAFTC Studios must provide
and adhere to some critical primary elements. One of these elements is a location
with relative ease for producers, crews, and actors to access, thus controlling costs
and logistics. NAFTC Studios is located adjacent to the 401 highway minutes from
the Ambassador Bridge, an international border crossing. The Windsor airport is a
very short drive being only 10 minutes away and the Detroit Metro airport is only
25 minutes from the Ambassador Bridge. Yes this location is perfect for
accessibility.
A skilled labour force is critical to any businesses success and this area provides a
wealth of knowledge and people. As mentioned the Ontario market place has the
largest concentration of film industry support people in Canada and to compliment
this workforce we have one of Canada’s largest skilled labour workforces located
here in Windsor and Essex County.
Producing film can be very costly and producers continually look for ways to
control those costs. Our location, the Windsor Essex County market also provides a
lower cost structure coupled with tax incentives offered through the Federal and
Provincial governments developed to entice foreign investment, Canadian creativity
and to spread the industry out from the shadows of the Toronto market place. When
you combine these incentives with new state of the art stages being built at NAFTC
Studios it is easy to understand why we will have a package that is very attractive
to all producers of film.
The film industry market place encompasses many people locally, nationally,
internationally and world wide. NAFTC Studios is being built to accommodate the
needs for all players within this market, from small independent producers, to large
multi national production companies. The initial 25,000 square foot stage with
adjoining production and post production space is being built as part of the
production costs for a new feature film. When this stage is built and the first movie
is produced it is sure to arouse attention from within the industry.
NAFTC Studios corporate shareholders are Mr. Shaban and other prominent
producers, writers from Los Angeles. NAFTC Studios will enter into a land lease
allowing them to build this stage and all future stages on this property.
This studio complex is situated on 22.5 acres of commercially zoned land (C2 and
C2h) with a market value of circa $2,000,000 and is owned by North American
Free Trade Consultants Inc, (the borrower) requires a $1,000,000 mortgage
package. These funds are needed to complete the financing of the land,
development costs incurred and incurring and to help with some of the other soft
costs associated with building the NAFTC Studio complex.
NAFTC Studios ‘making magic in our own backyards’ for many years to come.
NAFTC Studios
Business Plan November 2007
Page 3
Business Plan Table of Contents
Executive Summary _____________________________________________________ 1
Part 1
Business Description ____________________________________________ 5
1.1
The Film Production Industry __________________________________________ 5
1.2
Mission Statement ____________________________________________________ 7
1.3
Vision Statement _____________________________________________________ 7
1.4
Our Business ________________________________________________________ 7
1.5
Product line _________________________________________________________ 8
1.6
Market Position ______________________________________________________ 8
1.7
Pricing Structure _____________________________________________________ 9
Part 2
The Market __________________________________________________ 11
2.1
Customers _________________________________________________________ 11
2.2
Size and Trends _____________________________________________________ 12
2.3
Main Competitors ___________________________________________________ 14
2.4
Sales Projections ____________________________________________________ 14
Part 3
3.1
Product Development and Costs __________________________________ 15
Status of Development _______________________________________________ 15
Land - purchased __________________________________________________________ 15
Building – quoted and not awarded ___________________________________________ 15
Building – Construction schedule _____________________________________________ 15
Building – Future Studio / stages schedule _____________________________________ 15
3.2
Labour ____________________________________________________________ 15
3.3
Normal Operating Expenses __________________________________________ 16
3.4
Capital Requirements ________________________________________________ 16
Part 4
Sales and Marketing ___________________________________________ 17
4.1
Sales ______________________________________________________________ 17
4.2
Marketing _________________________________________________________ 17
Part 5
Management and Advisors ______________________________________ 18
5.1
President, CEO – Jim Shaban _________________________________________ 18
5.2
Studio Property Manager _____________________________________________ 18
5.3
Solicitor ___________________________________________________________ 18
5.4
Accounting Firm ____________________________________________________ 18
Part 6
Financial Resource Requirements ________________________________ 19
NAFTC Studios
Business Plan November 2007
Page 4
6.1
Cash Flow _________________________________________________________ 19
6.2
Balance Sheet _______________________________________________________ 19
6.3
Income Statement ___________________________________________________ 19
6.4
Capital Required/The Deal ___________________________________________ 19
6.5
Exit Plan ___________________________________________________________ 19
NAFTC Studios
Business Plan November 2007
Part 1
Page 5
Business Description
1.1 The Film Production Industry
Film production in Ontario is primarily focused in Toronto and its immediate
surroundings, a confined centric hub that NAFTC Studios is preparing to challenge.
With easy access to and from the United States, the Windsor / Essex County
corridor presents an enormous opportunity to capitalize on an, as yet, virtually
untapped sector of the independent film and television marketplace.
The structure of the film industry is divided into the following sectors:
a.
Film production studio
b.
Producers
c.
Distributors
Entering the market as a new production facility, NAFTC Studios has been
designed as a turnkey operation, dedicated to the consolidation of any artistic
vision. It is a multimedia production and post production facility targeted at the
North American media marketplace.
The Canadian film Industry is composed of the following:
a.
The Canadian film and television production sector is characterized by a
concentration of small firms in three regions of the country – Ontario
(specifically the Greater Toronto Area), Quebec, and British Columbia 1
b.
Ontario has the largest concentration of the film and television labour force and
of distribution and production firms in Canada. 2
c.
Primary business activities in the production sector include domestic
documentary/lifestyle television, feature film, television drama, and children’s
television production and foreign service and feature film production. 3
d.
26.4% of Canada’s productions firms are located in the Greater Toronto Area;
an additional 7.4% in other parts of Ontario.4
NAFTC will capture a share of this market place by providing a sophisticated
climate controlled studio ensuring the highest quality film results. Producers will
take advantage of this new stage by reducing costs and time of retakes due to
ambient noise and other problems that are faced in some of the older studios.
Women in Film and Television – Toronto (WIFT-T), Frame Work: Employment in Canadian ScreenBased Media – A National Profile, June 2004, p. 61.
2
WIFT-T, p. 13.
3
Ibid., p. 27
4
Ibid.
1
NAFTC Studios
Business Plan November 2007
Page 6
Our business is to provide a facility to these film makers that will simplify their
life, our studios will provide this and more. Considering that this market place
consists of North American clients and in fact clients from around the world who
are all seeking studio facilities that create the least problems for them our location
and studios will provide this convenience.
The Ontario market is well positioned within the North American market and
continues to be a destination for producers. As we are virtually minutes from the
Detroit / Michigan area our location enhances / provides further enticement for
these producers to locate here. This market place is also a great place to locate due
to the ongoing efforts of the Governments to attract investment through tax
incentives. 5
Employment within the industry is also a major consideration for us and our
location. Traditionally this area has been known as an industrial destination and
individuals with skills or desires for the film industry were forced to relocate. Our
business will bring / compliment the diversification of employers being sought for
the Windsor Essex County market place. Ontario’s Production Industry directly and
indirectly employs 48,0006
5

The majority of production companies are small in terms of paid employees,
falling into the Micro (1-4 employees) and Small and Medium Enterprise (SME)
(5-19 employees) categories. In fact, 60% of private firms have fewer than five
paid employees, including working owners, and 19% are owner-operated. Only
11.5% have 20 or more paid employees7.

Freelance work represents 40.9% of the total workforce of private production
companies across Canada.

One-third of Canada’s labour force resides in the Greater Toronto Area, with
other concentrations living in Quebec (29.2%) and British Columbia (20.3%).
These percentages reflect establishments primarily engaged in producing and/or
distributing motion pictures, videos, television programs or commercials;
exhibiting motion pictures; or providing post-production and related services8.

The production industry itself also stimulates employment in other sectors
including distributors, exhibitors, broadcasters, retailers, hoteliers, and caterers.
Ontario Film and Television tax credits - OFTTC
CFTPA Profile 2005, pg. 13
7
WIFT-T, p. xii.
8
Ibid., p. 13.
6
NAFTC Studios
Business Plan November 2007
Page 7
1.2 Mission Statement
To create a premiere multimedia production studio and post production facility that
producers of any size will find artistically satisfying and cost efficient.
1.3 Vision Statement
To excel in providing a premier destination for all producers within the film
industry, resulting in perpetual growth of our stages and the local artistic sub
economy.
1.4 Our Business
The NAFTC Studio business is to rent studio (stage) space and post production
office space to any producer of film. Rents are established by contracts and are
secured through formal lease agreements.
We are a new entry in the market and as such we are providing a unique alternative
to film producers for film production. These alternatives include items such as:
a. A new Canadian / Ontario location,
b. New state of the art production facilities,
c. Post production facilities on site,
d. Proximity to the Detroit Michigan gateway.
The founding president of the company Mr. Jim Shaban has spent over 20 years in
the film and entertainment industry. Over this time period he has seen many aspects
of the film production industry firsthand and from this has created a tremendous
vision on what is required in the industry. Not just for the producer of film but also
the post production, distribution of the final product and the affect it will have on
the local artistic community.
NAFTC Studios will be available for use to all producers of film, from large
entertainment companies to small independents. Producers will be drawn from the
local area, nationally and internationally from around the world. Why and how will
they come? NAFTC Studios has a clear understanding on the needs of the
producers during and after the filming process to ensure a superior final product.
The studios design being purpose built and not some old renovated building
enhances the producers ability to control quality and thereby reducing costs or at
the very least controlling the cost of the production.
It maybe a cliché to state “if you build it they will come” but in the case of NAFTC
Studios there is a direct parallel with this statement. Producers of film are a tight
intertwined community always looking for an edge for their next project and the
best place to film in. To jump start this obsession NAFTC through an associated
NAFTC Studios
Business Plan November 2007
Page 8
company which includes a world renowned writer / producer, will be making a film
immediately when the first stage has been completed. Prior to, during and after the
completion of this first feature film Mr. Shaban and his industry based team will be
marketing to other directors, producers and writers ensuring the continual use of the
studio and propelling growth for future studios and sound stages.
1.5 Product line
Film production studios (stages)
These stages are new building(s) with features built into them to accommodate
today’s film producers. Some of the primary features are:
a. 50 foot wall system
b. 25,000 square feet of shooting space
c. Open span
d. Climate controlled
e. Noise controlled
f. Substantial electrical capacity for production equipment
g. Ability to split building into smaller stages
h. Green room stage
i. Adequate on site parking for crew and support staff
j. Other areas on site for additional equipment and trailers
Land and site characteristics
a.
b.
c.
d.
e.
f.
22.5 acres
Zoned commercial
The first studio and parking will occupy 3 acres more or less
Potential for 6 studios of similar size
The property is located within minutes of the 401 highways and approximately
20 minutes to the international Ambassador Bridge.
Property will be secured to ensure safety, privacy and is located next to the
Essex County Ontario Provincial Police detachment
1.6 Market Position
NAFTC Studios position within the market place will be to establish itself as the
premier purpose built studio complex in Canada. As these studios are all clear
spans and provide ceiling heights of 50 feet they will ensure that the producer has
flexibility during the production process ensuring superior film footage and
excellent quality. The characteristics encountered during the film production are
directly related to the final product and ultimately the success of the film
distribution, a NAFTC Studio production ensures the quality from the onset.
NAFTC Studios
Business Plan November 2007
Page 9
1.7 Pricing Structure
The pricing schedule is determined by the studio space required, by the size of the
area used, (square footage) and the time the producer needs to film the project.
Pricing is then determined on a daily, weekly, monthly or other satisfactory time
element. This is the base rental rate for the studio and a similar charge is used for
the post production offices.
All other services and utilities are charged as they occur or are required. Utilities
are metered and are charged back to the tenant with an appropriate surcharge added
for office staff.
Within the Industry basic rental rates cover a wide spectrum, ranging from $1.50
per square foot per month to as high as $8.00. These rates charged on the type and
size of the studio being rented; smaller ones tend to charge more per square foot
than the larger 15,000 square foot and up studios. Another factor is the ceiling
height and the building characteristic, all of which relate back to the rental fee.
NAFTC Studios are being marketed at $2.40 per square foot per month which is
within the mid to high quartile of the rent spectrum for larger floor space studios.
All other rental rates are within the mid range of the rent spectrum and are
reflective of the local competitive market space available.
Another part of the pricing model is based on incentives offered through our
government departments. These tax based incentives are Federal and Ontario based
programs. Although NAFTC has no control over the future of these programs, they
do provide an incentive to build film production studios outside of the Toronto
market place and are highly sought after by the film companies. The following is a
brief description of these programs.
Tax Incentives – Ontario and Federal
For producers, the Ontario Film and Television Tax Credit (OFTTC)9 provides a
generously calculated 30% refundable tax credit on all eligible labour expenditures
incurred. An enhanced credit rate of 40% for the first $240,000 on qualifying
labour expenditures is also available for first time producers. As of May 2, 2000,
the OFTTC has allotted a 10% bonus on all productions shot entirely outside of the
greater Toronto area, or having at least five location days in Ontario and at least
85% of their location days in Ontario outside of the greater Toronto area.
The Ontario Computer Animation and Special Effects Tax Credit (OCASE)
provides a 20% refundable tax credit on all eligible Ontario labour expenditures
9
Ontario Media Development Corporation
http://www.filmontario.ca http://www.omdc.on.ca
NAFTC Studios
Business Plan November 2007
Page 10
incurred with respect to computer animation and special effects activities, directly
in support of the production and created primarily with digital technologies;
including design, modeling, rendering, lighting, painting, animating and
compositing, but not audio effects, in-camera effects, animation/visual effects
created by editing, and for use in promotional materials for the eligible production,
or for scientific research and experimental development purposes.
The Ontario Production Services Tax Credit (OPSTC) is an 18% refundable tax
credit applicable to Canadian and foreign-owned corporations on eligible labour
expenditures for salaries, wages and remuneration incurred. It can be combined
with the Federal Film or Video Production Services Tax Credit of 16% for a
maximum rate of 34%. All eligible productions must exceed a minimum production
cost of $1 million except in the case of a series of two or more episodes or a pilot
for such a series with a minimum expenditure per episode calculated at $200,000.
NAFTC Studios
Business Plan November 2007
Part 2
Page 11
The Market
2.1 Customers
The reality of the Canadian feature film market base is that it is very small.
Assuming that the average Canadian feature film costs around $3.5 million (1984
dollars), it is estimated that the film must generate a box office of approximately
$16 million (film rental of approximately $5.6 million) in order to recover its
negative costs, plus the costs of printing and advertising. Simply put, the current
Canadian film market cannot support many players, and coupled with the
dominance of U.S. majors (Warner Bros. Fox, Paramount et al) it struggles to
maintain its autonomy within a very hostile global market share. 10
However, current market research in Canadian film and television indicates a
specific and growing need for production facilities. Though Canadian film studios
rarely – if ever – have budgets en par with most Hollywood fare, Canadian
production facilities are frequently and increasingly preferred by our American
cousins to their own established studios.
At the same time, Canada’s lucrative provisions for cheaper production facilities
have managed to generate a respectable influx of American capital investment in
the Canadian film industry as a readily accessible alternative to the ever-increasing
high cost of doing business out of Los Angeles. Even when one factors in the recent
climb of the Canadian dollar the cost savings can be substantial in many market
places outside of Los Angeles.
That visitation of prosperity can tie up several Canadian production facilities for
months or even years at a time, causing an ever-increasing need for more diverse
and fully operational production facilities that are becoming increasingly scattered
farther away from the hyper-hub of metro Toronto.
The Situation in Windsor Ontario
Thus far, the organization of filming in the Windsor/Essex County region has been
ad hoc and fragmented at best; characterized by no agreed charter of operations or
terms of reference, separate policy objectives, no clear functionality, and, an
inability to direct funds and effort to sustain the film industry and maximize its
benefits for both the industry and the community at large.
Although relationships between private companies and provincial and municipal
council departments is generally good, interaction between them is ad hoc and
requires on-going goodwill from all parties. There is a general and peripheral
recognition of the importance of the film industry from these council departments,
and, there is also general agreement amongst role players that more mechanisms
should be put in place to streamline the services to the industry within the
Windsor/Essex County region.
10
Leong, Anthony; The Film Industry in Canada, 1996.
NAFTC Studios
Business Plan November 2007
Page 12
NAFTC is currently in discussions for a few high profile projects slated for
production through out 2008, which will require post production facilities
generating further rental revenue.
In addition to these active projects, NAFTC Studios is in the process of acquiring
and developing written treatments, original screenplays and screenplay options for
film and television product that are certain to build a solid reputation for the studio
as a cutting edge, state of the art production and post production facility.
2.2 Size and Trends
Our Ontario film and television industry remains strong as approximately 35% of
Canada’s total film production takes place in Toronto.11 The following table
provides information on domestic and film production in Ontario over the last three
years.
11
Toronto Film and Television Office
NAFTC Studios
Business Plan November 2007
Page 13
NAFTC Studios
Business Plan November 2007
Page 14
2.3 Main Competitors
The current and almost complete vacancy of studio production facilities within the
immediate Windsor region and its surrounding areas places NAFTC Studios at a
ground-breaking opportunity to be at the cusp of a major economic/creative growth
and development phase for the local/regional economy while already within the
established Canadian film/television industry.
In its initial phase as a multimedia production facility, NAFTC Studios will be in
the unique position to premiere and maintain that distinction by assisting regional
film makers with the only localized facilities outside of the greater Toronto area.
As mentioned earlier in this report Toronto remains as the largest area for film
production in Ontario and Canada is NAFTC Studios main competitor. The pricing
model and the additional tax incentives to produce film outside of the Toronto
market are advantages that a producer will seek. In addition to these cost saving
facts a producer will also have an extreme cost advantage for the ancillary services
required during production. These would include housing costs for crew and cast,
food services and transportation costs.
2.4 Sales Projections
All sales projections are exclusively based on operating the studio as a landlord.
Theses projections are based on a rental of floor space on a per square foot basis
with the tenants paying for all of the utilities incurred during productions.
NAFTC Studios stages are being marketed at $2.40 per square foot per month
which is within the mid to high quartile12 of the rent spectrum for larger floor space
studios.
12
Ontario Production Guide 2007
Studios / Warehouses / Sets
NAFTC Studios
Business Plan November 2007
Part 3
Page 15
Product Development and Costs
3.1 Status of Development
Land - purchased
The property known as E/S Manning Road (County Rd 19) Part Lot 18 & 19
Concession 10, located in the Town of Lakeshore ON, and, approximating 22.5
acres. Currently this property is commercially zoned as C2 and C2 (H).
Building – quoted and not awarded
Construction of the initial studio structure (including first stage development and
office space) as budgeted in both materials and cost of labour, and, slated for
commission to The Rosati Group is estimated at $2.7 million13.
Building – Construction schedule
The construction of the first studio is as follows:
a. Award contract by December 1st 2007
b. Capital requirements and financing conditions removed by December 15th
c. Site work to commence January 2008
d. Construction to be completed in 120 days
e. Occupancy on May 1st 2008
Building – Future Studio / stages schedule
The construction of subsequent studio buildings and sound stages are as follows:
a. Award contract for Studio 2 by May 1st 2009
i. Occupancy by September 2009
b. Award contract for sound stage by October 1st 2009
i. Occupancy by March 1st 2010
3.2 Labour
People required for the studios to operate efficiently is minimal and consist of one
or two support staff, site maintenance people (2) and site security (2). These labour
numbers are low as the tenant provides their own staff during their occupancy.
Labour required for the production of film and post production work is under the
control of the tenant (producer) and is either found from within the local market
place or imported in from around the world. NAFTC will facilitate in finding
suitable lodging for the labour but will not be involved in contracting or hiring any
external labour components.
13
These plans included within this document are copyrighted to The Rosati Group and NAFTC Studios, and are produced for
consideration and reference purposes only.
NAFTC Studios
Business Plan November 2007
Page 16
3.3 Normal Operating Expenses
Expenses for the studio are substantially covered through the tenant lease as they
are drawn on a triple net lease basis.
3.4 Capital Requirements
Currently the capital requirements are for the refinancing of debt on the land and
for some of the soft cost relating to the new studio.
The studio (stage building) is being built as part of the initial deal with the first
tenant, whereby they have included the building cost in the lease negating any
financing or capital requirements for this construction.
NAFTC Studios
Business Plan November 2007
Part 4
Page 17
Sales and Marketing
4.1 Sales
The first lease has been secured and is pending a start-up date for the production of
a new movie. This lease is based on normal market rates and falls within the initial
cash flow projections for the studio. Subsequent sales are pending with the primary
hurdle being that the studio has not been built. Once the studio has been built and is
operational these pending sales will be finalized.
4.2 Marketing
The purpose and goal of NAFTC Studios marketing initiative will be to:
a.
attract independent production companies to the region,
b.
foster production of original material for domestic consumption,
c.
facilitate commercial television and feature film productions,
d.
promote a distribution and exhibition of films and television programs,
e.
advertise support of creative needs required during postproduction,
The marketing strategy for NAFTC Studios’ will be based on cost effective
promotions geared towards generating interest and awareness in the studio’s
production and post-production capabilities; billed as easily accessible alternatives
in close proximity to the U.S. border.
This initial thrust will include, but is not exclusive to, the procurement of
representation on the radio, paid advertisements (in industry trades and media
publications), regular media updates (press releases) publicized on our own
commercial website, and most importantly through recommendations derived from
our clients.
NAFTC Studios
Business Plan November 2007
Part 5
Page 18
Management and Advisors
Crucial to earmarking NAFTC Studios’ immediate objectives and present them as
viable alternatives away from the centralized production facilities in Toronto, is the
studio’s corporate structuring of a highly skilled management team.
5.1 President, CEO – Jim Shaban
Responsibilities include the strategic and organizational planning and management
and operating as a point person for new business ventures resulting in company
growth.
5.2 Studio Property Manager
Responsibilities include the day to day operation of the studio complex, including
coordinating the stage schedules and facilitating the needs of the producers; and the
management of all NAFTC Studio employees.
5.3 Solicitor
Mr. Joseph Byrne
14 Centre ST, Essex Ontario
519- 776-7349
5.4 Accounting Firm
Gerald Duthie & Company
525 Windsor Ave, Windsor Ontario
519-255-9600
NAFTC Studios
Business Plan November 2007
Part 6
Page 19
Financial Resource Requirements
6.1 Cash Flow
Monthly cash flow projections are prepared for budget purposes and for cash
management. These projections are available upon request.
6.2 Balance Sheet
The balance sheet attached is the last year end statement of North American Free
Trade Consultants Inc
6.3 Income Statement
NAFTC Studios
The projections are based on the first year being leased, and year two and three
leased for 9 months. This is the most likely scenario to be obtained during start up.
North American Free Trade Consultants Inc
The projections are based on the land being leased (3 acres more or less, first stage
building only) on an annual basis of $150,000.
6.4 Capital Required/The Deal
This studio complex is situated on 22.5 acres of commercially zoned land (C2 and
C2h) with a market value of circa $2,000,000 and is owned by North American
Free Trade Consultants Inc, (the borrower) requires a $1,000,000 mortgage
package. These funds are needed to complete the financing of the land,
development costs incurred and incurring and to help with some of the other soft
costs associated with building the NAFTC Studio complex.
6.5 Exit Plan
NAFTC Studios
The ability to sustain in this market place is real and attainable, and the ability to
leave the market place should NAFTC Studios wish to change the scope of their
business is also attainable. The most logical exit strategy would be to sell to another
existing studio currently residing in the province. If this strategy was not effective
other buyers would be sought from within the global market place.
The secondary or fall back position would be to liquidate the assets as a
commercial development site and the possible use of the stage building for
warehousing.
All of the exit plans would be able to generate a profit or the recovery of the asset
value at a very minimum.
NAFTC Studios
Business Plan November 2007
Page 20
NAFTC Studios
Business Plan November 2007
Pro forma Income Statement
May 2008 to April 30 2009
NAFTC Studios
Sales
Lease Revenue
Utilities revenue
Telecommunications
Client Recoveries
Parking
Total Sales
Cost of Goods Sold
Gross Profit
Other Income
Gross Income
Expenses
Direct Costs
Electrical
Telecommunications
Client Expenses
Total Direct Expenses
Page 21
Annual
$792,000
$0
$0
$0
$0
$792,000
$0
$792,000
$0
$792,000
$0
$0
$0
$0
Facility Expenses
Employee costs
Fees
General & Administrative
Business Development
Operating costs
Utilities / Janitorial
Insurance
Property taxes
Financial Charges
Total Facility Expenses
$236,400
$18,000
$30,000
$30,000
$32,400
$21,600
$15,600
$18,000
$1,800
$403,800
Land Lease
Interest on Debt Long term
Depreciation
Operating Expenses
Net Income Before Tax
Income Taxes
Net Income (Loss)
$150,000
$0
$0
$553,800
$238,200
$0
$238,200
NAFTC Studios
Business Plan November 2007
Pro forma Income Statement
May 2009 to April 30 2010
NAFTC Studios
Sales
Lease Revenue
Utilities revenue
Telecommunications
Client Recoveries
Parking
Total Sales
Cost of Goods Sold
Gross Profit
Other Income
Gross Income
Expenses
Direct Costs
Electrical
Telecommunications
Client Expenses
Total Direct Expenses
Page 22
Annual
$594,000
$0
$0
$0
$0
$594,000
$0
$594,000
$0
$594,000
$0
$0
$0
$0
Facility Expenses
Employee costs
Fees
General & Administrative
Business Development
Operating costs
Utilities / Janitorial
Insurance
Property taxes
Financial Charges
Total Facility Expenses
$236,400
$18,000
$30,000
$30,000
$32,400
$21,600
$15,600
$18,000
$1,800
$403,800
Land Lease
Interest on Debt Long term
Depreciation
Operating Expenses
Net Income Before Tax
Income Taxes
Net Income (Loss)
$150,000
$0
$0
$553,800
$40,200
$0
$40,200