Financial Analysis Marble Mountain Ranch, Inc.

Transcript:Financial Analysis Marble Mountain Ranch, Inc.:
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 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 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 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 IRS Tax Filing Summary Taxable income is not representative of financial health or ability to pay. Cash Flow Analysis Based only on cash expenses incurred Exclude non-cash expenses Depreciation & Amortization Cash Flow Analysis Add non-deductible cash expenses Net Worth Analysis Assets Property Water/Mineral Rights Structures Equipment/Vehicles Livestock Accounts Receivables Cash/Investments Net Worth Analysis Assets Marble Mountain Ranch properties $913,000 (2017 Assessed Tax Value) Market value unknown Known Assets $212,054 Cash $2,000 Net Worth Analysis Liabilities Mortgages Loans Payable Accounts Payable Liens Net Worth Analysis Liabilities Mortgages $246,802 (as of 12/2016) Loans Payable $148,000 (as of 12/2016) Net Worth Analysis Net Worth = Assets – Liabilities Net Worth = $1,127,055 - $394,802 Net Worth = $732,253 Excessive Expenses Analysis 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) Summary Net Cash Flow (2016) = $127,168 Net Worth = $732,253 No indication of excessive expenses Alternatives feasible (financially)