2014
Help Entertain and Restore Organization (HERO)
Jeff Pingel | (515) 297-3776
Jacob Pulis | (515) 835-0582
Deb Brown | (515) 832-2564
0

Saving the Webster Theater ........................................................................................................... 2
The Business .................................................................................................................................... 3
Ownership Composition ................................................................................................................. 5
Personnel ........................................................................................................................................ 7
Security ........................................................................................................................................... 7
Regulations...................................................................................................................................... 8
Marketing ........................................................................................................................................ 9
Market Research ......................................................................................................................... 9
Customer Description.................................................................................................................. 9
Competition ............................................................................................................................... 10
Product ...................................................................................................................................... 11
Pricing ........................................................................................................................................ 11
Promotions ................................................................................................................................ 12
Project Overview ........................................................................................................................... 13
Financial Assumptions .................................................................................................................. 14
Financial Information .................................................................................................................... 16
Hero Budget 2013-2014 ............................................................................................................ 16
Project Funding Goals ............................................................................................................... 16
Projected Operating Expenses .................................................................................................. 17
Break-Even Analysis .................................................................................................................. 17
Break-Even Cash Flow Analysis ................................................................................................. 18
Cash Flow Year One ................................................................................................................... 19
Cash Flow Year Two................................................................................................................... 20
Cash Flow Year Three ................................................................................................................ 21
Cash Flow Year Four .................................................................................................................. 22
Cash Flow Year Five ................................................................................................................... 23
Appendix A – Insurance Quote ..................................................................................................... 24
Appendix B – D&B Business List Report ........................................................................................ 25
1

The Webster Theater was built in 1906. It opened as the Orpheum Theater on November 29,
1909 and operated as a vaudeville theater until 1916 when the Orpheum Theater moved to a new building right next door named the E. H. Martin Building and began showing silent movies. In the 1920’s the Orpheum was remodeled and renamed the Granada Theater. The main floor seated 600 and the balcony held 150 patrons. Then in 1939 it became The Webster and the marquee was added. Around 1988 Bob
Fridley of Fridley Theatres purchased the Webster
Theater. It was remodeled at that time to the current seating capacity of 320. The Webster was operated by Fridley Theatres until the mid-2000’s, when it was taken over by the BigTime Cinema chain. The last showing was Warm Bodies on March 7 th
2013. The theatre went out of business March 8, 2013 and went into bankruptcy.
Help Entertain and Restore Organization (HERO) is committed to opening the Webster City
Movie Theatre once again. The closing of small-town theaters is rumored to be not so uncommon in the industry. With the advent of Redbox and Netflix, going out to the movies is perceived to be declining in popularity. Yet … yet, there is still a vibrant market that wants to go to the movies. It’s more than just seeing a movie. It’s going out to dinner first, then to the movies then for a drink. It’s taking the family to the movies and enjoying the popcorn and having the conversation with your kids after the movie – a special treat for everyone. Going out to a movie will always be a staple of entertainment for the American public. According to
Entertainment Weekly, “Americans spent many of their hard-earned dollars at the movies —
Movie theaters sold an estimated $10.84 billion worth of tickets domestically in 2012, beating the previous record of $10.59 billion set in 2009, and marking a new record in terms of revenue earned in a single calendar year. All told, the 2012 box office finished 6.6 percent ahead of
2011′s $10.17 billion take and 2.5 percent of 2010′s $10.57 billion cume.”
The movie theatre is a cornerstone building in town, and comes with many memories for most of the people who live here. Reopening a small town movie theater is not a new or novel idea.
The following are excerpts from a study (MOVIE THEATERS IN THE MAINTENANCE OF RURAL
2

COMMUNITIES IN KANSAS) done by Roy Christman, Department of Political Science, San Jose
State University.
“For towns too small or too poor to attract a mall, the closure of a downtown theater can be a major blow to a town's economic vitality and sense of community. A large building is vacant, nearby cafes and restaurants lose a magnet, and an informal social gathering point and recreation center disappears. Local residents who would like to watch an occasional film are forced to drive long distances. Those too young to drive do without.”
“Community owned movie theaters provide at least two important benefits for a small town.
First, the theater improves the town's economy, both by employment and by aiding the surrounding businesses, such as restaurants and stores, with spillover activity. Second, a community theater generates a feeling of common purpose during the acquisition and restoration process, and a sense of community pride once the theater is screening films again.”
“Studies show that communities that restore their historic theatres see stabilized and increasing property values in the surrounding area as well as the generation of new ancillary businesses directly related to the facility.”
The primary challenge right now for small-town theaters is not the lack of market or community support in patronizing the theater; it is in fact the financial resources needed to obtain digital equipment necessary to show movies. The national film exhibition industry is rapidly converting exclusively to digital projection, by mid-2014, new movies will cease being released on 35mm film. This forces a theatre- if it is going to remain open- to convert to digital equipment, an approximate $80,000 investment.
HERO has a three-stage plan to raise funds necessary to purchase the theater and upgrade the equipment so the theater can re-open and become a cornerstone for Webster City’s downtown once again.
The re-opened Webster Theater will host new movies (released in the past month) as well as offering concessions- fresh popcorn and treats. Not a new concept by any means. Operations will be done slightly different than in the past – with a promise to customers they will have an experience they will treasure.
3

The theater will be open four to five days per week. It will offer evening shows up to three nights a week such as Wednesday, Thursday and Friday nights. It will offer matinees and evening shows on Saturday and Sunday.
The cost of a movie is a base plus a percentage of sales. Average cost is approximately $250 per week. Movies will be obtained through a broker-process. A movie is available from a studio or a distributor for the studio. A contract will be made with a broker (such as Bill Barstow, of Main
Street Theatres, Omaha, NE) allowing the broker to deal on the Webster Theater’s behalf with the studio/distributor in acquiring movies. Specificities that are determined (prior to the movies showing) include terms, payment for the movie (the percentage of the ticket sales that go to the studio), the dollar advance amount to be paid, and the length of time the movie will be shown (one, two or three weeks). Movies are then confirmed by the broker with the studio/distributor on the Monday before the Friday it will be shown at the theater. Once confirmed, the movie is sent to the theater via UPS or other courier. The movie is on a hard drive that you plug into the digital projector server and download. A "key code" is then emailed to the theater that unlocks the movie allowing it to be played. The code includes the time range (start and end dates) that the movie will be shown. After the movie show dates are complete, the movie is deleted from the digital server.
Webster Theater will work with the broker to set-up a tentative monthly calendar of movies to be shown each week that will be promoted. Because movies are not confirmed until four days prior to the showing, titles for the entire month are not guaranteed and may change. This happens rarely. According to Jim Davies the Manager of The Windsor Theatre in Hampton,
Iowa, they have had to change a title only twice in the past 15 years.
The Webster Theater will take full advantage of the opportunities the internet and social media can provide in marketing, promotions and communications.

The theater will post the list of movies being shown every month so patrons can plan to go to the movies, not wait until Monday to see what is showing.
 The theater will listen to the community, and show movies people want to see.

The theater will engage customers on our Facebook page and eventually on our website. (HERO set up “Save the Webster” Facebook page on a Thursday. By Saturday there were over 1,500 likes and people were commenting, sharing their memories, asking questions and offering to help. )
The theater will also utilize local media and the Chamber to ensure everyone will know what movies are being played. By promoting movies up to a month ahead of a time, patrons will be
4

able to see what movies are coming and can plan accordingly. For instance if they see a newrelease will be showing in at the Webster Theater the following week, they may opt to wait and see it in Webster City versus driving to Fort Dodge or Ames.
In addition to movies, the theatre will offer other special events, birthday parties, Christmas at the movies, etc. – there will be plenty of reasons to go to the theater. As a cornerstone business in Webster City, the theater plans to be another reason people stay in town and hosting parties and events on days it is closed is part of that plan.
The building itself offers a lot of potential for adding amenities. Currently the basement which used to house a video rental store is empty too. It is not handicapped accessible at this time.
The long term goal is to make it accessible, and find a good use for the space. The theatre itself is in relatively good shape and with a few repairs (and of course installation of digital equipment) it will be ready for the public.
Other opportunities with the theater include taking out a few rows of seats and put in seating that may include tables and chairs, deluxe chairs or unique seating. Adults would be able to sit here and perhaps enjoy a glass of wine or a beer. Putting in a stage is also a consideration which would increase opportunities for hosting other forms of entertainment. All opportunities are being researched and considered. By the end of 2014, the plan is to have the Webster
Theater opened and not just a movie theater, but a versatile sought-after entertainment venue.
The Webster Theater will be owned by Help Entertain and Restore Organization (HERO) which will be a 501(c)3 corporation. According to the IRS, the theater/HERO qualifies:
To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes set forth in section
501(c)(3), and none of its earnings may inure to any private shareholder or individual. In addition, it may not be an action organization , i.e., it may not attempt to influence legislation as a substantial part of its activities and it may not participate in any campaign activity for or against political candidates.
Organizations described in section 501(c)(3) are commonly referred to as charitable organizations . Organizations described in section 501(c)(3), other than testing for public safety organizations, are eligible to receive tax-deductible contributions in accordance with Code section 170.
5

The organization must not be organized or operated for the benefit of private interests, and no part of a section 501(c)(3) organization's net earnings may inure to the benefit of any private shareholder or individual. If the organization engages in an excess benefit transaction with a person having substantial influence over the organization, an excise tax may be imposed on the person and any organization managers agreeing to the transaction.
Section 501(c)(3) organizations are restricted in how much political and legislative
( lobbying ) activities they may conduct.
Currently, HERO is comprised of a planning board. The members are:
 Jeff Pingel, Black Hills Energy employee, 515-297-3776

Jacob Pulis, P and P Electric primary, 515-835-0582

Deb Brown, Webster City Area Chamber of Commerce employee, 515-832-2564
HERO’s planning board is working with Henkel & Associates, P.C. to complete the 1023 form, determination of federal tax exempt status and file it with the IRS. Jordan and Mahoney Law
Firm is assisting the group in preparing the organization’s by-laws and articles of incorporation.
HERO has already obtained it’s FEIN (46-4303869.)
In addition, HERO’s planning board has been tasked with doing research, planning and initiating a fundraising campaign. The board has been working with other communities that have been successful in reopening their local theaters such as those in Hampton, Jefferson and Charles
City. Those communities have graciously shared information and insight in a “pay-it-forward” mentality so Webster City can be the benefactor of their successes. In addition the board has been recruiting community support and volunteers including students in Webster City High
School’s Entrepreneurial class. The students have embraced the project and have been an integral part of getting the project started, writing the business plan and promoting the project.
Next steps for the planning board include creating a community-centered Board of Directors to run the organization. The permanent Board will be responsible for hiring and overseeing a
Manager for the theatre. Additional part-time employees will also be hired. Paid staff will be supported by volunteers.
6

The theater will be employ one full-time Manager and four to six part-time employees.
The Manager will be responsible for opening and closing the theater and overseeing operations including part-time employees. Duties would include, for example: turn on lights, start popcorn when he/she comes in so there will be some ready, turn on cash register, start the movie, turn everything off and close the theater at night. The Manager will also be responsible for putting up promotional posters and changing the letters on the sign outside. $30,000 per year is budgeted for the Managers salary. An example of a scheduled week for the manager is as follows: 5:30 pm to 11:30 pm Wednesday through Sunday. Additional hours would be required on weekends to accommodate matinées and occasionally hours (11 pm – 3 am) for special midnight premiers. The management position would require an Associate’s Degree in
Business/Management or the equivalent in experience. The theater would minimally offer benefits for the Manager that would include free movies and two weeks paid vacation. The
Manager will report directly to the Board of Directors.
Part-time employees will be responsible for operating the cash register (sell tickets and refreshments), clean bathrooms, pick up trash, vacuum lobby and aisles, and clean out concession area. Starting pay for part-time employees will be $7.50. Raises will be provided at the discretion of the Manager as long as payroll remains in budget as outlined by the Board of
Directors. Part-time employees will work 6:30 pm to 10:30 pm in the evenings. Additional shifts will be required for weekend matinees. Part-time employees must be 16 years old or older and must pass an interview with the Manager. The theater will offer part-time employees free movies (when they are not working) and free refreshments (within a set-limitiation.) Parttime employees will report to the Manager.
The theater’s staff will be supported by volunteers. Trained volunteers will be utilized to assist theater operations in the absence of the Manager. They may also be used for simple duties such as taking tickets. Volunteers will be used in the greatest extent in promotions and marketing of the theater. Volunteers will work in conjunction with/ report to the Manager and
Board of Directors depending on the task at hand.
Policies, procedures and equipment will be put in place to insure a safe environment for the public and to limit opportunities for theft and vandalism.
7

Cash Handling: One employee will run the cash register every night. That employee will be responsible for all of the money going in and out of the register. At the end of the night the employee and manager will count the money in the register and reference it with the inventory of the theater. Any discrepancies will be recorded and monitored. The cash register will have a passcode for each employee that will need to be entered in order to operate the system and locked unless being used to the one assigned employee for the evening.
Security Cameras: There will be a $300 budget for security cameras and there are many options for different systems on the internet. The theater will have one camera on the cash register, one on the front entrance doors, one in the film room, and one on the movie screen.
Hiring Employees: All employees must have no felonies, and must have committed no other major crimes of any kind. Each employee must pass a drug test. Each employee must pass an interview with the manager before being hired. Every employee hired will watch a brief movie on how to spot shoplifters which will ensure that everybody pays for services.
Disaster/Emergency Plans: In the event of a tornado everyone will go to the basement. In the event of a fire there are emergency exits up by the theater screen, and the main entrance.
All movies are protected by Copyright and Trademark regulations. These rules do not change from movie to movie or studio to studio. Regulations that do change are each studios rules when renting a movie from them. There are approximately 12 major film studios to rent movies from. Each has its own set of guidelines of what you can or cannot do with your theater while their movie is to be shown. These rules also are not set in stone. As a theater builds a history and a good credit rating some studios will allow some variance. For instance free merchant movies cannot be shown without permission but some studios over time will make exceptions for theaters that show a good payment history. The Webster Theater will be working with a broker to insure all regulations are adhered to as well as to assist with creating a favorable rating for the theater.
The MPAA or Motion Picture Association of America does have guidelines and age recommendations for movies. The MPAA rating system is a voluntary scheme not enforced by law and films can be exhibited without a rating, though many theaters refuse to exhibit nonrated or NC-17 rated films.
8

Branding the Webster Movie Theatre experience will be vital in maintaining a steady number of customers. Trends in our target market include home technology possibilities. The Webster experience will give consumers and opportunity to see movies on the big screen in a community setting, a gathering place for friends and neighbors. It will be vital to partner with other businesses in the downtown area to expand that experience to an evening of dining and entertainment.
The average annual household consumer expenditure for Hamilton County for movie, theatre, amusement parks and other (in 2013) is $110.24 per household. There are 6,417 households so that is a total of $707,410 a year. D&B Business List Reports includes annual sales revenue for the Webster Theater at $210,000. That equates to capturing 30% of the market. In reviewing reporting for other area-theaters, generating $210,000 in sales revenue is feasible. (D&B reports the theater in Eldora at $210,000 in annual sales revenue and the theater in Belmond reports $490,000 in annual sales revenue.)
The theater’s customers reside primarily in Hamilton County, Iowa and zip code 50595. As indicated above, there are 6,417 households in the county. The estimated total population is
15,404 with an almost even split between male and female. The median age is 42.7. The average household income is $60,430 and each household spends on average for entertainment $2,419 per year.
Ages 5 to 19 are 20% of the market. Ages 20 to 44 are 33% of the market, 45 to 64 are 21% of the market and 65 years of age and older are 19% of the market. This gives the theater a wide range of movies to show, with appeal to the different age groups.
In an informal survey on HERO’s Facebook page ( www.facebook.com/savethewebster ) collected the following answers for types of movies people wanted to see:
 Do some fun things, like midnight teen nights. Adult only BYOB (they have that in big cities.) One price for pizza and a movie etc. 11 am Sat shows!

Afternoon classics, evening new movies
 Would love to see Sat. Disney movies for the kids and a late night Friday movie for teens
9

Any venue that provides entertainment is competition for the theater. Other movie theaters are the most direct competition. The Webster Theater is the only theater in Hamilton County.
Individuals have to travel to other towns to experience a movie in a theater. Fort Dodge has an eight screen multiplex but is a 25 mile drive, Ames has two multiplex theatres which is a 45 mile drive, Iowa Falls has a two screen theatre 35 miles away and Clarion has a small one screen theatre 25 miles away also. Theatres in the larger nearby towns (Fort Dodge and Ames) provide first run movies; offer a wider variety and more showings. However, prices for tickets and concessions are higher at those theaters. Time and travel is also consideration in patronizing theaters in other towns.
Redbox, movie channels and online streaming service are likely the biggest non-theater competition to the Webster Theater and the theater industry as a whole. They provide cheap, watch at home movies with no constraints on when you can watch them. They do not however provide new releases, the big screen experience or the social environment that going to the theatre provides.
Local bars do provide the social atmosphere, alcohol and broader hours of operation but there are age restrictions, legal consequences to over doing it and it gets expensive rather quickly.
Local bars include Racerz, TK’s, Carpie’s Biker Bar, Kelly’s Place, American Tap and Seneca Street
Saloon.
The bowling alley while providing the social aspect, broader hours and physical activity also has some drawbacks. Some people have physical restrictions preventing them from this activity. If bowling multiple games the cost can become prohibitive to a family rather quickly. There are also a limited number of lanes which at times limits access to the casual bowler.
At the local level, school functions and Fuller Hall activities can also draw people away from the theatre. Dances, sporting events, band and choral concerts will keep families away at times but those same people would be able to catch a show on another evening.
Fort Frenzy is a newly opened entertainment center in Fort Dodge. Indoor features include roller skating, mini-bowling alley, bumper cars, laser tag, video games, play area for children who are 5 and younger, rooms for special events, concessions and a parents lounge. Outdoor features (once completed) will include go-carts, miniature golf, water war site (water balloon launch), bumper boats and a picnic area. Pricing for activities varies. Skating for instance on a
Friday night for two hours is $6 plus $3 skate rental. Laser tag is $5.00 per game. Bumper cars
10

are $3.00. Passes and package groups are available which equates to $25 for two hours of unlimited play per person. A family of four can experience two hours of fun for $90. Although there is a variety of entertainment available at the new Fort, the cost is on average more than double the cost for two hours of entertainment at the Webster Theater.
The Webster Theatre can provide a great movie experience at a competitive price point to other community theatres. Once you add the time and expense of driving it becomes an even better value. Multiplex theatres cannot compete at our projected price point. The Webster
Theater is the only movie theatre in all of Hamilton County and has the potential to be a source of pride for the community. With an equipment upgrade the theater can provide the best in big screen experience right here in Webster City. The Webster offers a bigger screen than any theatre in any of the surrounding counties.
With a few upgrades the theater can expand its usefulness and capacity to host other entertainment venues such as renting the theatre out for other events, bands, comedians, etc.
Seat upgrades and the addition of a stage are some of the upgrades being considered.
The Webster Theatre will set prices on a competitive scale:
Adult Admission - $4.00
Child (under 12) - $3.00
An additional $2 charge per ticket is added for 3D features
Concessions will be priced reasonably and will be considerate of patrons “pocket-books.”
Because the theater will be a non-profit, community-minded entity, the goal in pricing concessions will be to make a reasonable margin to offset operating expenses, not to make a fortune at the expense of captive-patrons as it seems to be at other larger corporate-owned theaters.
The theater’s customer service policy will be to offer great movies, service with a pleasant smile, friendly greeting and extremely extraordinary experience. The credit policy will be cash, credit card and personal checks. Tickets may be purchased on-line at the theater’s web site.
Street parking is available in the area. The interior spaces are conducive to providing an excellent movie-going experience.
11

The Webster Theater will advertise in The Freeman Journal daily paper. The newspaper has a circulation of 17,000 in Hamilton and Webster County. The theater will have an active website that will list the movies along with trailers and descriptions, pages for community involvement and more. The theater’s current Facebook page has over 1,700 fans and is growing- engagement is strong.
Other promotions include notice on the local Cable channel and positive word-of-mouth acclamations. Webster City Federal Savings Bank’s electronic billboard, for example, will promote the movie of the week. The theater will join the Chamber and utilize their marketing channels: Table tents at all the local restaurants, weekly email newsletter and quarterly coffees.
For special events, a direct mail campaign will be utilized targeting the local area. The theater will have a marketing team (comprised of volunteers) that will organize a Media Mix Calendar and plan for marketing and promotions throughout the year in a timely manner. Graphic image support includes the branding of the Webster. We will have a logo to identify the theater. The logo will be used on the web site and all print copy. Print posters listing the featured films each month will be posted in local businesses. Signage on the outside of the theatre will add to the promotion of the business. Movie posters in a lighted case on the outside of building will also bring attention to the Webster. Advertising and promotional expenses are budgeted at 2% of sales. This will range from $200 to $300 per month.
12

1.
Buy the physical location and complete necessary repairs. The building is for sale for
$45,000. Wells Fargo has agreed to match funds and accepted HERO’s offer of $22,500 for the building. Cost of repairs for the building is anticipated to be around $10,000.
2.
Upgrade to digital equipment and install a screen that will be appropriate for the movies being shown. This will cost $80,000 and does include 3d. HERO is working with Ted
Boehman at Mid-West Cinema in Des Moines.
3.
Open the movie theatre under the direction of a nonprofit board with a full time paid manager and part time paid staff. The manager will be paid $30,000 a year and part time staff at $7.50 an hour. Wages will total approximately $44,000 per year. The goal is to have a year’s worth of operating costs ($131,280 - see attached budget) raised from donors.
These total project costs are just around $245,000. Webster City Hotel/Motel tax approved funding $11,300 of the project. Grant funding from the Hanson Foundation is being sought.
Commitments for funding assistance from private individuals in the community (they have asked to not be identified at this point) have been given. HERO is working with several businesses and pursuing donations from them. The entrepreneurial students at Webster City
High School are conducting fundraising drives as part of their desire to assist with the project.
In-kind assistance has been offered as well. P and P Electric will ensure our electrical needs are met and up-to-date to be able install the digital equipment. The Chamber will put the movies on their table tents and in their e-newsletter at no cost. HERO is also currently talking to volunteers and businesses to identify ways they can assist as in-kind work.
HERO will be a community run project. HERO will kick off a grass roots funding campaign after the funds have been raised to purchase the building. If HERO is not successful at raising those funds, whatever has been raised will be returned to the donors. The local newspaper and radio station have agreed to help promote this project and track fundraising goals. An Indiegogo fundraising campaign online is being organized and a Facebook campaign has been successfully launched. Finally, Enhance Hamilton County Foundation is also working with us to help make this fundraising campaign a success.
13

Market Research was compiled that included analysis of sales (ticket, concession, rental, advertising) and operating expenses (concession cost of goods, broker/courier, film rental, supplies, repairs and maintenance, insurance and advertising.) Included in the research were reported sales revenues from D&B Business list reports, market and industry reports provided by the state office of the Iowa Small Business Center and historical financial statements of a similar establishment – specifically another community-owned movie theater in a town and county equal in size and levels of competition to Webster City/Hamilton County. The basis of the research was used to formulate projected revenues and expenses in a conservative manner.
The following is a comparative profit and loss showing:
 Financials from Similar Community-owned Theater

Webster Theater’s Break-even Projection
 Webster Theater’s Year 1 Projection
Comparative P & L
Similar Community
Theater
Webster Theater
Break-Even
Webster Theater
Year 1
Income
Ticket Sales
Concession Sales
Adv/Rental Income
Total Income
Expenses
Movie Rental
Concessions COG
Gross wages
Payroll expenses
Supplies (office & oper.) $1,244
Booking/Courier
Advertising
$4,797
$1,954
Insurance
Professional Fees
$8,705
$0
Repairs/ Maintenance
Telephone
Utilities
$6,928
$533
$7,817
$79,319
$93,331
$5,000
$177,650
$26,825
$35,530
$19,542
$0
Total Expenses
Gross Profit
$113,874
$63,776
% of Sales
44.6%
52.5%
2.8%
100%
15.1%
20.0%
11.0% n/a
0.7%
2.7%
1.1%
4.9% n/a
3.9%
0.3%
4.4%
64%
35.9%
$72,000
$57,480
$1,800
$131,280
$25,200
$28,740
$43,920
$4,320
$1,200
$3,288
$2,628
$3,000
$4,320
$3,840
$1,800
$9,024
$131,280
$0
% of Sales
54.8%
43.8%
1.4%
100%
19.2%
21.9%
33.5%
3.3%
0.9%
2.5%
2.0%
2.3%
3.3%
2.9%
1.4%
6.9%
100%
0.0%
$72,000
$85,680
$4,800
$162,480
$25,200
$42,840
$43,920
$4,320
$1,200
$4,068
$3,252
$3,000
$4,320
$3,840
$1,800
$9,048
$146,808
$15,672
% of Sales
44.3%
52.7%
3.0%
100%
15.5%
26.4%
27.0%
2.7%
0.7%
2.5%
2.0%
1.8%
2.7%
2.4%
1.1%
5.6%
90%
9.6%
14

For conservative projections, sales figures- especially concession sales, are lower than those reported by the similar establishment and figures for cost of concession goods is higher for
Webster’s projections. Other variances such as wages, professional fees, insurance and utilities were made based on costs identified specifically for the Webster Theater. For instance an insurance quote was provided by Town and Country Insurance for the Webster Theater (see
Appendix A) and utility costs are based on prior three years of actual expenses for the theater.
Cash flow projections for years two through five are based on a 1% increase in sales. Projected sales by year five are at $168,866 which can be considered conservative based on D&B Business
List Reports that reflect annual sales revenue for Webster Theater and Eldora’s theater at
$210,000 and Belmonds theater at $490,000. (See Appendix B.)
15

Webster Theater Project Costs
Building
Repairs/Improvements
Equipment
Legal/Professional Fees
Working Capital
Total
PHASE ONE
Building Purchase
Repairs/Improvements
501©3 Formation
TOTAL PHASE ONE
$22,500
$10,000
$80,000
$1,300
$131,280
$245,080
Hotel/Motel
Tax Grant
$10,000
$1,300
$11,300
In-kind
$10,000
$10,000
Additonal
Funding
Sources
$12,500
$80,000
$131,280
$223,780
Total
$22,500
$10,000
$80,000
$1,300
$131,280
$245,080
PHASE TWO
$22,500.00
$10,000.00
$1,300.00
Digital
Equipment/Screen
PHASE THREE
$80,000.00
One Year
Operating Costs
$131,280.00
$33,800.00 TOTAL PHASE TWO $80,000.00
TOTAL PHASE
THREE $131,280.00
16

Expenses
Movie Rental
Concessions COG
Gross wages
Payroll expenses
Supplies (office & oper.)
Booking/Courier Services
Advertising
Insurance
Professional Fees
Repairs and Maintenance
Telephone
Utilities
Total
Monthly
$2,100.00
$2,395.00
$3,660.00
$360.00
$100.00
$274.00
$219.00
$250.00
$360.00
$320.00
$150.00
$752.00
Annually
$25,200.00 Pay in advance $200-250/week (+ % of sales if greater)
$28,740.00 50% of Concession Sales
$43,920.00 Manager at $30,000/Year + 47 hours/week part-time employees
$4,320.00 FICA/Medicare and Workers Comp
$1,200.00 Office/Operational/Cleaning
$3,288.00 Budgeted Expense
$2,628.00 2% of Sales
$3,000.00 General Liability and Commercial Property
$4,320.00 Legal/Accounting includes monthly fees and annual filings/audit
$3,840.00 Budgeted Expenses
$1,800.00 Budgeted Expenses
$9,024.00 Based on prior three years of actual expenses
$10,940.00 $131,280.00
Monthly
Ticket Sales
Concession
Miscellaneous Income
Total
$6,000.00 Ticket Sales
Annually
$72,000.00 250 Ticket Sales/Week
$4,790.00 Concession $57,480.00 44% of Ticket/Concession Sales
$150.00 Miscellaneous Income $1,800.00 Screen Advertising/Rental Income
$10,940.00 Total $131,280.00
17

Break-even Cash Flow Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Total
CASH RECEIPTS
Ticket Sales 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 72,000
Concession Sales 4,790 4,790 4,790 4,790 4,790 4,790 4,790 4,790 4,790 4,790 4,790 4,790 57,480
Advertising/Rental Income 150 150 150 150 150 150 150 150 150 150 150 150 1,800
TOTAL CASH RECEIPTS 10,940 10,940 10,940 10,940 10,940 10,940 10,940 10,940 10,940 10,940 10,940 10,940 131,280
Total Cash Available 10,940 10,940 10,940 10,940 10,940 10,940 10,940 10,940 10,940 10,940 10,940 10,940 131,280
CASH PAID OUT
Movie Rental
Concessions COG
Gross wages
Payroll expenses
Supplies (office & oper.)
Booking/Courier Services
Advertising
Insurance
Professional Fees
Repairs and Maintenance
Telephone
Utilities
TOTAL CASH PAID OUT
Cash Flow Variance
2,100
2,395
3,660
360
100
274
219
250
360
320
2,100
2,395
3,660
360
100
274
219
250
360
320
2,100
2,395
3,660
360
100
274
219
250
360
320
2,100
2,395
3,660
360
100
274
219
250
360
320
2,100
2,395
3,660
360
100
274
219
250
360
320
2,100
2,395
3,660
360
100
274
219
250
360
320
2,100
2,395
3,660
360
100
274
219
250
360
320
2,100
2,395
3,660
360
100
274
219
250
360
320
2,100
2,395
3,660
360
100
274
219
250
360
320
2,100
2,395
3,660
360
100
274
219
250
360
320
2,100
2,395
3,660
360
100
274
219
250
360
320
2,100 25,200
2,395 28,740
3,660 43,920
360
100
274
219
250
360
320
4,320
1,200
3,288
2,628
3,000
4,320
3,840
150
752
150
752
150
752
150
752
150
752
150
752
150
752
150
752
150
752
150
752
150
752
150
752
1,800
9,024
10,940 10,940 10,940 10,940 10,940 10,940 10,940 10,940 10,940 10,940 10,940 10,940 131,280
0 0 0 0 0 0 0 0 0 0 0 0 0
18

Cash on Hand
CASH RECEIPTS
Ticket Sales
Concession Sales
Advertising/Rental Income
TOTAL CASH RECEIPTS
Total Cash Available
CASH PAID OUT
Movie Rental
Concessions COG
Gross wages
Payroll expenses
Supplies (office & oper.)
Booking/Courier Services
Advertising
Insurance
Professional Fees
Repairs and Maintenance
Telephone
Utilities
TOTAL CASH PAID OUT
Cash Flow Variance
YEAR ONE Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Total
131,280 132,586 133,892 135,198 136,504 137,810 139,116 140,422 141,728 143,034 144,340 145,646 131,280
6,000
7,140
400
6,000
7,140
400
6,000
7,140
400
6,000
7,140
400
6,000
7,140
400
6,000
7,140
400
6,000
7,140
400
6,000
7,140
400
6,000
7,140
400
6,000
7,140
400
6,000
7,140
400
6,000
7,140
400
72,000
85,680
4,800
13,540 13,540 13,540 13,540 13,540 13,540 13,540 13,540 13,540 13,540 13,540 13,540 162,480
144,820 146,126 147,432 148,738 150,044 151,350 152,656 153,962 155,268 156,574 157,880 159,186 293,760
2,100
3,570
3,660
2,100
3,570
3,660
2,100
3,570
3,660
2,100
3,570
3,660
2,100
3,570
3,660
2,100
3,570
3,660
2,100
3,570
3,660
2,100
3,570
3,660
2,100
3,570
3,660
2,100
3,570
3,660
2,100
3,570
3,660
2,100 25,200
3,570 42,840
3,660 43,920
360
320
150
754
360
100
339
271
250
360
100
339
271
250
360
320
150
754
360
100
339
271
250
360
320
150
754
360
100
339
271
250
360
320
150
754
360
100
339
271
250
360
320
150
754
360
100
339
271
250
360
320
150
754
360
100
339
271
250
360
320
150
754
360
100
339
271
250
360
320
150
754
360
100
339
271
250
360
320
150
754
360
100
339
271
250
360
320
150
754
360
100
339
271
250
360
320
150
754
360
100
339
271
250
360
320
150
754
4,320
1,200
4,068
3,252
3,000
4,320
3,840
1,800
9,048
12,234 12,234 12,234 12,234 12,234 12,234 12,234 12,234 12,234 12,234 12,234 12,234 146,808
132,586 133,892 135,198 136,504 137,810 139,116 140,422 141,728 143,034 144,340 145,646 146,952 146,952
19

Cash on Hand
CASH RECEIPTS
Ticket Sales
Concession Sales
Advertising/Rental Income
TOTAL CASH RECEIPTS
Total Cash Available
CASH PAID OUT
Movie Rental
Concessions COG
Gross wages
Payroll expenses
Supplies (office & oper.)
Booking/Courier Services
Advertising
Insurance
Professional Fees
Repairs and Maintenance
Telephone
Utilities
TOTAL CASH PAID OUT
Cash Ending
YEAR TWO Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Total
146,952 148,327 149,703 151,078 152,454 153,829 155,204 156,580 157,955 159,331 160,706 162,081 146,952
6,060
7,211
400
6,060
7,211
400
6,060
7,211
400
6,060
7,211
400
6,060
7,211
400
6,060
7,211
400
6,060
7,211
400
6,060
7,211
400
6,060
7,211
400
6,060
7,211
400
6,060
7,211
400
6,060
7,211
400
72,720
86,537
4,800
13,671 13,671 13,671 13,671 13,671 13,671 13,671 13,671 13,671 13,671 13,671 13,671 164,057
160,623 161,999 163,374 164,750 166,125 167,500 168,876 170,251 171,627 173,002 174,377 175,753 311,009
2,121
3,606
3,660
2,121
3,606
3,660
2,121
3,606
3,660
2,121
3,606
3,660
2,121
3,606
3,660
2,121
3,606
3,660
2,121
3,606
3,660
2,121
3,606
3,660
2,121
3,606
3,660
2,121
3,606
3,660
2,121
3,606
3,660
2,121 25,452
3,606 43,272
3,660 43,920
360
320
150
754
360
100
342
273
250
360
100
342
273
250
360
320
150
754
360
100
342
273
250
360
320
150
754
360
100
342
273
250
360
320
150
754
360
100
342
273
250
360
320
150
754
360
100
342
273
250
360
320
150
754
360
100
342
273
250
360
320
150
754
360
100
342
273
250
360
320
150
754
360
100
342
273
250
360
320
150
754
360
100
342
273
250
360
320
150
754
360
100
342
273
250
360
320
150
754
360
100
342
273
250
360
320
150
754
4,320
1,200
4,104
3,276
3,000
4,320
3,840
1,800
9,048
12,296 12,296 12,296 12,296 12,296 12,296 12,296 12,296 12,296 12,296 12,296 12,296 147,552
148,327 149,703 151,078 152,454 153,829 155,204 156,580 157,955 159,331 160,706 162,081 163,457 163,457
20

Cash on Hand
CASH RECEIPTS
Ticket Sales
Concession Sales
Advertising/Rental Income
TOTAL CASH RECEIPTS
Total Cash Available
CASH PAID OUT
Movie Rental
Concessions COG
Gross wages
Payroll expenses
Supplies (office & oper.)
Booking/Courier Services
Advertising
Insurance
Professional Fees
Repairs and Maintenance
Telephone
Utilities
TOTAL CASH PAID OUT
Cash Ending
YEAR THREE Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Total
163,457 164,902 166,346 167,791 169,236 170,681 172,126 173,570 175,015 176,460 177,905 179,350 163,457
6,120
7,283
400
6,120
7,283
400
6,120
7,283
400
6,120
7,283
400
6,120
7,283
400
6,120
7,283
400
6,120
7,283
400
6,120
7,283
400
6,120
7,283
400
6,120
7,283
400
6,120
7,283
400
6,120
7,283
400
73,440
87,394
4,800
13,803 13,803 13,803 13,803 13,803 13,803 13,803 13,803 13,803 13,803 13,803 13,803 165,634
177,260 178,704 180,149 181,594 183,039 184,484 185,928 187,373 188,818 190,263 191,708 193,152 329,090
2,142
3,641
3,660
2,142
3,641
3,660
2,142
3,641
3,660
2,142
3,641
3,660
2,142
3,641
3,660
2,142
3,641
3,660
2,142
3,641
3,660
2,142
3,641
3,660
2,142
3,641
3,660
2,142
3,641
3,660
2,142
3,641
3,660
2,142 25,704
3,641 43,692
3,660 43,920
360
100
345
276
250
360
100
345
276
250
360
100
345
276
250
360
100
345
276
250
360
100
345
276
250
360
100
345
276
250
360
100
345
276
250
360
100
345
276
250
360
100
345
276
250
360
100
345
276
250
360
100
345
276
250
360
100
345
276
250
4,320
1,200
4,140
3,312
3,000
360
320
150
754
360
320
150
754
360
320
150
754
360
320
150
754
360
320
150
754
360
320
150
754
360
320
150
754
360
320
150
754
360
320
150
754
360
320
150
754
360
320
150
754
360
320
150
754
4,320
3,840
1,800
9,048
12,358 12,358 12,358 12,358 12,358 12,358 12,358 12,358 12,358 12,358 12,358 12,358 148,296
164,902 166,346 167,791 169,236 170,681 172,126 173,570 175,015 176,460 177,905 179,350 180,794 180,794
21

Cash on Hand
CASH RECEIPTS
Ticket Sales
Concession Sales
Advertising/Rental Income
TOTAL CASH RECEIPTS
Total Cash Available
CASH PAID OUT
Movie Rental
Concessions COG
Gross wages
Payroll expenses
Supplies (office & oper.)
Booking/Courier Services
Advertising
Insurance
Professional Fees
Repairs and Maintenance
Telephone
Utilities
TOTAL CASH PAID OUT
Cash Ending
YEAR FOUR Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Total
180,794 182,309 183,823 185,338 186,852 188,366 189,881 191,395 192,910 194,424 195,938 197,453 180,794
6,181
7,355
400
6,181
7,355
400
6,181
7,355
400
6,181
7,355
400
6,181
7,355
400
6,181
7,355
400
6,181
7,355
400
6,181
7,355
400
6,181
7,355
400
6,181
7,355
400
6,181
7,355
400
6,181
7,355
400
74,172
88,265
4,800
13,936 13,936 13,936 13,936 13,936 13,936 13,936 13,936 13,936 13,936 13,936 13,936 167,237
194,731 196,245 197,760 199,274 200,788 202,303 203,817 205,332 206,846 208,360 209,875 211,389 348,031
2,163
3,678
3,660
2,163
3,678
3,660
2,163
3,678
3,660
2,163
3,678
3,660
2,163
3,678
3,660
2,163
3,678
3,660
2,163
3,678
3,660
2,163
3,678
3,660
2,163
3,678
3,660
2,163
3,678
3,660
2,163
3,678
3,660
2,163 25,956
3,678 44,136
3,660 43,920
360
100
348
279
250
360
100
348
279
250
360
100
348
279
250
360
100
348
279
250
360
100
348
279
250
360
100
348
279
250
360
100
348
279
250
360
100
348
279
250
360
100
348
279
250
360
100
348
279
250
360
100
348
279
250
360
100
348
279
250
4,320
1,200
4,176
3,348
3,000
360
320
150
754
360
320
150
754
360
320
150
754
360
320
150
754
360
320
150
754
360
320
150
754
360
320
150
754
360
320
150
754
360
320
150
754
360
320
150
754
360
320
150
754
360
320
150
754
4,320
3,840
1,800
9,048
12,422 12,422 12,422 12,422 12,422 12,422 12,422 12,422 12,422 12,422 12,422 12,422 149,064
182,309 183,823 185,338 186,852 188,366 189,881 191,395 192,910 194,424 195,938 197,453 198,967 198,967
22

Cash on Hand
CASH RECEIPTS
Ticket Sales
Concession Sales
Advertising/Rental Income
TOTAL CASH RECEIPTS
Total Cash Available
CASH PAID OUT
Movie Rental
Concessions COG
Gross wages
Payroll expenses
Supplies (office & oper.)
Booking/Courier Services
Advertising
Insurance
Professional Fees
Repairs and Maintenance
Telephone
Utilities
TOTAL CASH PAID OUT
Cash Ending
YEAR FIVE Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Total
198,967 200,552 202,137 203,723 205,308 206,893 208,478 210,063 211,648 213,234 214,819 216,404 198,967
6,243
7,429
400
6,243
7,429
400
6,243
7,429
400
6,243
7,429
400
6,243
7,429
400
6,243
7,429
400
6,243
7,429
400
6,243
7,429
400
6,243
7,429
400
6,243
7,429
400
6,243
7,429
400
6,243
7,429
400
74,916
89,150
4,800
14,072 14,072 14,072 14,072 14,072 14,072 14,072 14,072 14,072 14,072 14,072 14,072 168,866
213,039 214,624 216,210 217,795 219,380 220,965 222,550 224,135 225,721 227,306 228,891 230,476 367,833
2,185
3,715
3,660
2,185
3,715
3,660
2,185
3,715
3,660
2,185
3,715
3,660
2,185
3,715
3,660
2,185
3,715
3,660
2,185
3,715
3,660
2,185
3,715
3,660
2,185
3,715
3,660
2,185
3,715
3,660
2,185
3,715
3,660
2,185 26,220
3,715 44,580
3,660 43,920
360
320
150
754
360
100
352
281
250
360
100
352
281
250
360
320
150
754
360
100
352
281
250
360
320
150
754
360
100
352
281
250
360
320
150
754
360
100
352
281
250
360
320
150
754
360
100
352
281
250
360
320
150
754
360
100
352
281
250
360
320
150
754
360
100
352
281
250
360
320
150
754
360
100
352
281
250
360
320
150
754
360
100
352
281
250
360
320
150
754
360
100
352
281
250
360
320
150
754
360
100
352
281
250
360
320
150
754
4,320
1,200
4,224
3,372
3,000
4,320
3,840
1,800
9,048
12,487 12,487 12,487 12,487 12,487 12,487 12,487 12,487 12,487 12,487 12,487 12,487 149,844
200,552 202,137 203,723 205,308 206,893 208,478 210,063 211,648 213,234 214,819 216,404 217,989 217,989
23

24

25