Financial Analysis Marble Mountain Ranch, Inc.
Description: Financial Analysis Marble Mountain Ranch, Inc. Bryan Elder, MBA, PE Senior Water Resource Control Engineer Office of Enforcement - Special Investigations Unit State Water Resources Control Board Qualifications BS Chemical Engineering UC
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slide1. Financial Analysis Marble Mountain Ranch, Inc. Bryan Elder, MBA, PE
Senior Water Resource Control Engineer
Office of Enforcement - Special Investigations Unit
State Water Resources Control Board<br>
slide2. Qualifications BS Chemical Engineering – UC Santa Barbara
MS Civil Engineering – UC Los Angeles
PE – Civil Engineer
MBA – Pepperdine University
Graduate coursework in accounting, finance, asset valuation
US EPA training on economic benefit and ability to pay financial models
Completed >100 economic benefit and >25 ability to pay analyses since 2014
Provide financial training to enforcement staff statewide<br>
slide3. Basis of Ability to Pay Net Cash Flow
Cash receipts (revenue) – Cash payments (expenses)
Measure of financial health and company value
Net Worth
Assets
Liabilities
Ability to Finance<br>
slide4. Information Reviewed Tax filings 2013 – 2016 – MMR-16
Ability to Pay Claim Form (December 12, 2016) – MMR-16
Public Records Search (attached to memorandum)
Mr. Cole’s written testimony – MMR-1
KASL Engineering Proposal - MMR-15
Alternative Energy Quotes – MMR-19<br>
slide5. IRS Tax Filing Summary Taxable income is not representative of financial health or ability to pay.<br>
slide6. Cash Flow Analysis Based only on cash expenses incurred
Exclude non-cash expenses
Depreciation & Amortization<br>
slide7. Cash Flow Analysis Add non-deductible cash expenses<br>
slide8. Net Worth Analysis Assets
Property
Water/Mineral Rights
Structures
Equipment/Vehicles
Livestock
Accounts Receivables
Cash/Investments<br>
slide9. Net Worth Analysis Assets
Marble Mountain Ranch properties
$913,000 (2017 Assessed Tax Value)
Market value unknown
Known Assets
$212,054
Cash
$2,000<br>
slide10. Net Worth Analysis Liabilities
Mortgages
Loans Payable
Accounts Payable
Liens<br>
slide11. Net Worth Analysis Liabilities
Mortgages
$246,802 (as of 12/2016)
Loans Payable
$148,000 (as of 12/2016)<br>
slide12. Net Worth Analysis Net Worth = Assets – Liabilities
Net Worth = $1,127,055 - $394,802
Net Worth = $732,253<br>
slide13. Excessive Expenses Analysis<br>
slide14. Alternative Analysis KASL Consulting Engineers
Engineering & survey services - $44,250
Design implementation costs unknown
Alternative energy
$425 – 526,000
Golden West Energy
6 Year Lease - $55,130 per year + $142,000 buyout
Annual increase of ~$21,000 over existing utility expense
7.9% of Gross Revenue (2016)<br>
slide15. Summary Net Cash Flow (2016) = $127,168
Net Worth = $732,253
No indication of excessive expenses
Alternatives feasible (financially)<br>
Senior Water Resource Control Engineer
Office of Enforcement - Special Investigations Unit
State Water Resources Control Board<br>
slide2. Qualifications BS Chemical Engineering – UC Santa Barbara
MS Civil Engineering – UC Los Angeles
PE – Civil Engineer
MBA – Pepperdine University
Graduate coursework in accounting, finance, asset valuation
US EPA training on economic benefit and ability to pay financial models
Completed >100 economic benefit and >25 ability to pay analyses since 2014
Provide financial training to enforcement staff statewide<br>
slide3. Basis of Ability to Pay Net Cash Flow
Cash receipts (revenue) – Cash payments (expenses)
Measure of financial health and company value
Net Worth
Assets
Liabilities
Ability to Finance<br>
slide4. Information Reviewed Tax filings 2013 – 2016 – MMR-16
Ability to Pay Claim Form (December 12, 2016) – MMR-16
Public Records Search (attached to memorandum)
Mr. Cole’s written testimony – MMR-1
KASL Engineering Proposal - MMR-15
Alternative Energy Quotes – MMR-19<br>
slide5. IRS Tax Filing Summary Taxable income is not representative of financial health or ability to pay.<br>
slide6. Cash Flow Analysis Based only on cash expenses incurred
Exclude non-cash expenses
Depreciation & Amortization<br>
slide7. Cash Flow Analysis Add non-deductible cash expenses<br>
slide8. Net Worth Analysis Assets
Property
Water/Mineral Rights
Structures
Equipment/Vehicles
Livestock
Accounts Receivables
Cash/Investments<br>
slide9. Net Worth Analysis Assets
Marble Mountain Ranch properties
$913,000 (2017 Assessed Tax Value)
Market value unknown
Known Assets
$212,054
Cash
$2,000<br>
slide10. Net Worth Analysis Liabilities
Mortgages
Loans Payable
Accounts Payable
Liens<br>
slide11. Net Worth Analysis Liabilities
Mortgages
$246,802 (as of 12/2016)
Loans Payable
$148,000 (as of 12/2016)<br>
slide12. Net Worth Analysis Net Worth = Assets – Liabilities
Net Worth = $1,127,055 - $394,802
Net Worth = $732,253<br>
slide13. Excessive Expenses Analysis<br>
slide14. Alternative Analysis KASL Consulting Engineers
Engineering & survey services - $44,250
Design implementation costs unknown
Alternative energy
$425 – 526,000
Golden West Energy
6 Year Lease - $55,130 per year + $142,000 buyout
Annual increase of ~$21,000 over existing utility expense
7.9% of Gross Revenue (2016)<br>
slide15. Summary Net Cash Flow (2016) = $127,168
Net Worth = $732,253
No indication of excessive expenses
Alternatives feasible (financially)<br>